Third Party Payment Providers Replace Credit Card Transactions
When online gambling launched, the preferred and most convenient mode of depositing and withdrawing money was the credit card.
Over the years however, internet based fraud and the onslaught of US legislation which banned internet based financial transactions for fear of terrorist related money laundering, have seen banking institutions withdraw their involvement with online casinos.
Subsequently, new payment methods needed to be developed. The most innovative and successful of these was the "Third Party" account or "Transfer Site". Most commonly referred to as 3P providers, third party accounts aim to provide universal funding access to internet gaming sites without any direct involvement from the credit card companies.
The process entails that an online gambler registers an account with a 3P such as Neteller, Firepay or Citadel, and then makes deposits into that account using a credit card. Casinos view these 3P's as virtual banks, and any deposits made via these payment providers are reflected immediately. The same applies with withdrawals. All monies withdrawn are deposited back into the players 3P account. In this way, credit card companies are no longer directly involved in the transaction of funds into or out of an online casino site.
The greatest advantage of utilising the services of a 3P account, is that deposits are secure and immediate. Neteller offers an instant "check-out" facility in which they guarantee that all withdrawals from casinos are reflected instantaneously, provided that the initial deposit was made using their 3P account. In realty, there have been reported delays of several minutes, and sometimes hours, but it is still considerably faster than credit card transactions which have been known to take days and even weeks. Not all casinos offer 3P facilities, but with the security and rapidity that these transfer sites offer, it is safe to assume that they will become readily available within a short period of time.
Withdrawing from a 3P account is simple, and it is advisable for gamblers to set up their 3P accounts so that they have access to a bank cheque account. In this way, once the 3P service has verified the bank account, all transfers from the 3P account are fast and trouble-free.
There are some operating practices at 3P providers that can be cumbersome though, and this includes the identity verification process. Neteller is particularly stringent in ensuring that account holders live at and log in from the address that is stipulated on the depositor's/withdrawer's banking account or credit card. Should this not be the case, the account holder will be required to fax through countless documents to satisfy their security requirements.
Besides this though, it certainly is worthwhile registering with a 3P for financial security when making payments online, and of course, for the convenience of having deposits and withdrawals reflect within minutes. Online casinos provide a list of 3P providers which they are affiliated with on their websites, so select a casino, register a 3P account, and start playing!