With credit card fraud on the rise in NJ, credit card codes to be made mandatory for transactions.
All online gambling transactions made in New Jersey will now require a credit card code, come spring 2015. The decision was made after US Office of the Comptroller of the Currency and New Jersey’s Division of Gaming (DGE) and Department of Banking and Insurance took action to deflate the high rate of credit card fraud in New Jersey.
Since the implementation of internet gambling in New Jersey, under US gambling laws, in November 2013, there has been an increased rate of failed payments for online gaming services. Some New Jersey players complained of failure in depositing or funds, to and from legalized internet gambling operators.
Bankers to familiarize themselves with online gambling
It also seemed that some prominent credit card companies like Visa had also prohibited transactions on online gambling sites in the US, undoubtedly because the bankers thought it may be a scam. Around 73% of online internet transactions are approved by VISA in the state. While MasterCard approves just 44%.
The late spring launch will give the banking industry adequate time to get to know the intricacies behind internet gambling. As a DGE spokesperson pointed out, “Further improvements are expected in the sector, a period of patience is also required”.