April 1, 2003 is the day gaming operators are looking closely at. It is the day many speculate Visa's issuing banks will begin enforcing the "7995" code, which labels merchants as gambling establishments. The date has significance in that all new policies implemented by Visa normally begin on April 1 of each year.
While there are those who expect this day (and entire month for that matter) to come and go without much fanfare, many predict doom and gloom for the online gaming industry. Among these prognosticators, Marc Lesnick, who hosted January's ASROC (Alternative Payment Solutions) conference in Costa Rica while gaining a wealth of knowledge from other "insiders" through his popular website, Startcasino.com.
"April 1st is the day that it appears the certification and verification by Visa program is set to begin," said Lesnick. "Basically what it entails is that You and I will have to verify who we are at the Visa website prior to making online purchases. You will need to go onto the Visa website to get verified. As for the Certification part of this, the merchant bank then goes to the payment processor (i.e. NETeller) and they check to make sure you are certified correctly under the proper code. In the case of online gaming operations, this code would be "7995". If NETeller, for example, wants to protect one of its online gaming merchants by disguising the code, they can face being blacklisted within the Visa system."
With the April 1 date looming, Lesnick feels there will be a grace period of at least five days to make sure that all coding is correct.
Visa has already implemented the "7995" code as an optional measure, however, many merchant banks began jumping on the bandwagon as a means of cutting down on fraud and charge backs.
With Visa poised to take drastic measures, Mastercard is predicted to follow suit by midyear.
Should Visa's issuing banks begin enforcing the code next month, this is bound to cripple many online gaming outfits and processors, in particular the internet casinos which find it difficult getting customers to send money by any means other than a credit card. Some online casinos such as Golden Palace, Empire Poker and Casino Webcam do offer the Western Union and bank wire, though these methods are mostly popular among sports bettors.
Another money transfer option not yet time tested is to have transactions charged to a customer's phone bill, though Lesnick claims this will come under intense scrutiny over the next few months.
Insiders suggest there are many factions within the Visa organization, many of whom are supportive of both online gaming and the adult entertainment industry. In the past, Visa has come down on the later in what was loosely termed "Comply or Die". While many laughed off the notion of curtailing online adult entertainment, approximately 90% of the websites in this sector found themselves out of business a short time after the "crack down". Of course thousands of new sites crop up daily so the effect was less noticeable.
Lesnick also speculates a move to implement enforcement of the code across the board.
"I've spoken to operators in both Asia and Europe," he disclosed. "Some are claiming the 7995 code has made it difficult even for them to operate, others say it has had no effect. I do think it is possible Visa will make European and Asian merchants accountable as well even though most of the talk now is just about North America. I see them (Visa) taking this all the way."
While there are those who expect this day (and entire month for that matter) to come and go without much fanfare, many predict doom and gloom for the online gaming industry. Among these prognosticators, Marc Lesnick, who hosted January's ASROC (Alternative Payment Solutions) conference in Costa Rica while gaining a wealth of knowledge from other "insiders" through his popular website, Startcasino.com.
"April 1st is the day that it appears the certification and verification by Visa program is set to begin," said Lesnick. "Basically what it entails is that You and I will have to verify who we are at the Visa website prior to making online purchases. You will need to go onto the Visa website to get verified. As for the Certification part of this, the merchant bank then goes to the payment processor (i.e. NETeller) and they check to make sure you are certified correctly under the proper code. In the case of online gaming operations, this code would be "7995". If NETeller, for example, wants to protect one of its online gaming merchants by disguising the code, they can face being blacklisted within the Visa system."
With the April 1 date looming, Lesnick feels there will be a grace period of at least five days to make sure that all coding is correct.
Visa has already implemented the "7995" code as an optional measure, however, many merchant banks began jumping on the bandwagon as a means of cutting down on fraud and charge backs.
With Visa poised to take drastic measures, Mastercard is predicted to follow suit by midyear.
Should Visa's issuing banks begin enforcing the code next month, this is bound to cripple many online gaming outfits and processors, in particular the internet casinos which find it difficult getting customers to send money by any means other than a credit card. Some online casinos such as Golden Palace, Empire Poker and Casino Webcam do offer the Western Union and bank wire, though these methods are mostly popular among sports bettors.
Another money transfer option not yet time tested is to have transactions charged to a customer's phone bill, though Lesnick claims this will come under intense scrutiny over the next few months.
Insiders suggest there are many factions within the Visa organization, many of whom are supportive of both online gaming and the adult entertainment industry. In the past, Visa has come down on the later in what was loosely termed "Comply or Die". While many laughed off the notion of curtailing online adult entertainment, approximately 90% of the websites in this sector found themselves out of business a short time after the "crack down". Of course thousands of new sites crop up daily so the effect was less noticeable.
Lesnick also speculates a move to implement enforcement of the code across the board.
"I've spoken to operators in both Asia and Europe," he disclosed. "Some are claiming the 7995 code has made it difficult even for them to operate, others say it has had no effect. I do think it is possible Visa will make European and Asian merchants accountable as well even though most of the talk now is just about North America. I see them (Visa) taking this all the way."
