Gambling Using Credit Cards To Be Banned

The Gambling Commission recently announced that from April 14, 2020, payments made on credit card will be banned on all forms of remote gambling and non-remote betting.

How does this ban affect you?

Very simply, lottery operators will no longer be allowed to take Credit card payments via any remote methods.

The ban on credit card payments will take effect on 14th April, and will apply to credit card payments for both new and current customers, whether they are on a subscription basis or individual entries. For subscriptions this applies to:

  • Recurring subscription payments via credit card (weekly, monthly or annual)
  • Payments taken automatically without the customer having to input their credit card details each time
  • Payments which were originally made via remote means

Lotteries are still able to take payments with credit cards until 14th April, including payments for draws which will take place after 14th April. The ban is also applied to E-Wallets (such as PayPal). Major E-Wallet providers will be able to enforce measures to prevent credit card payments for gambling.

How we are looking after you

As your External Lottery Manager, we will be ensuring that all players of your lottery will have their payment method checked. This is to ensure your lottery remains compliant with the Gambling Act and doesn’t break the law.

Where we find any a player who is using a Credit card, we will contact them directly to help them switch to a new payment method. This is to ensure that subscription credit card payments are no longer taken from 14 April onwards. Customers affected by this will need to pay with alternative means to continue to take part.

Fortunately, the majority of all current players are using Direct Debit, Standing Order or Debit Card payments, which all remain legal. We will also be monitoring all new sign ups to your lottery to ensure that no credit cards are being used. This is simply done by our system checking the first four numbers of a payment card to check whether it is a debit or credit card. If somebody attempts to use a credit card, we will simply decline the payment and contact them to discuss other payment methods.

Why the ban is being introduced

The ban is being introduced to ensure that the welfare of all players is being considered. With credit cards it can be far too easy for players to spend money that they don’t have and amass serious debts. Research has shown that 22% of online gamblers who use credit cards are problem gamblers. It is the duty of the Gambling Commission and it’s licensees to ensure the welfare of these people is an utmost priority. This is why we include items such as self-exclusion options across all of our sites, to make it as easy as possible for those with gambling problems to stop.

For any more information on the credit card ban and how it affects you please free to get in contact: ross@prizeprovision.com