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Money transfers for the betting industry |
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Resume
Dezember 2007 |
Individual bank accounts for every user help eliminate erroneous bookings and minimize administration. Money transfers are the most secure method of payment on the internet. Once a user has successfully completed a transfer, it can not be recalled – the credit to the merchant's account is guaranteed. One disadvantge of normal money transfers, however, is that the merchant is only notified when his account is credited, with the consequence that the user can not enjoy the offered service before then. Thus a user may have to wait two to three business days before beginning to bet with funds in his betting account. In contrast, the merchant can receive immediate notification of online bank transfers, available in Germany (Giropay) and Austria (eps). Online bank transfers use PIN and TAN validation, a procedure with which every homebanking user is already familiar. Since not all countries and user accounts are available for online transfers, a combination of payment transfer methods can be recommended: the merchant's payment webpage simply offers money transfer as a payment method, but his payment provider processes the transfer in accordance with the payor's country and account type. The merchant will be informed of the credit to his account either within a few seconds, or after up to two business days. Incomplete or incorrectly completed transfers cause merchant's a lot of work. The necessary details of payment (user- or account-name) might be omitted, or account numbers incorrectly entered. Correcting such errors involves significant manual effort. But this problem can be solved by assigning each user his own individual account number. Once the user has logged into the website, his personal account number (assigned by the payment system) is displayed. This account is permanently assigned to the user, and can be used for transfers again and again. A contingent of individual accounts is registered with the bank. The number of possible accounts is theoretically unlimited, and the actual number of accounts registered can be increased as necessary. Any European bank can process payments to one of these accounts via the IBAN number; the transfer charges are those of a standard domestic money transfer. The accounts are held at a major European bank domiciled in a country with liberal rules regarding bookmakers and betting. Thus bank transfers to individual accounts are the preferred solution for betting-sites seeking a payment alternative for the European market. As well as increasing the certainty of payment, this solution minimizes the effort required to manually correct incorrect bookings. Moreover, it can be used anywhere in Europe.
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Article published in the iGaming Business September/October 2006 Page 24.
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