Online Casinos & Payment Methods – The Timeline

If you frequent online gambling sites already, you’ll be aware that payment methods of online casinos have evolved in the recent past. There are more and more options available to clients to make transactions as easy, and secure as possible. We’ll highlight some of the more popular methods and others you can find on trustworthy casino platforms.

With this article, we’d like to detail all of the different online casinos payment methods that are out there. There are many to understand and assess to find the best way forward for your future deposits and withdrawals. We’ll also look at the history of payment methods and how these have evolved in the USA and beyond!

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• Online Casinos Payment Methods Available Now
• Difference Between Online Casino Deposit Methods and Withdrawals
• History of Online Payments Explained
• Conclusion

Online Casinos Payment Methods Available Now

Online casinos payment methods fall into several categories. We’ll break down each category and what types of cards, e-wallets and cryptocurrencies are available within them. Each has its own advantages and disadvantages.

Payment Card Methods: Credit, Debit, Prepaid

There are many types of payment cards, even within the categories of credit, debit and prepaid card, so let’s explain what each one can do when it comes to online casinos! For a long time, not all casino platforms allowed payments with credit cards. In some places, this is still against the law, so that people do not wrack up great debts while playing. However, increasingly more places allow credit payments through a variety of cards.

In the US, credit card payments at online casinos are available, though most providers charge these as a cash advance. However, there still may be some who prefer to not use a credit card for this kind of activity. Don’t worry, there are still many more options out there, starting with debit cards. A debit card would withdraw money directly from a checking account, meaning that money is there and ready to go – it’s not on loan.

A variety of debit and credit card brands can be used as payment methods for online casinos. Visa is still one of the most popular around the US. You may already recognize this due to its availability on a wide variety of online shopping platforms. Visa has worked hard to be integrated into virtually every online payment flow, so that its users can make digital purchases seamlessly, with no hassle.

Mastercard is another popular brand of payment cards. If your online casino of choice accepts credit card payments, it is likely it will accept Mastercard payments, too.

Next up is American Express, or AMEX for short. You may have noticed that AMEX is sometimes not accepted by merchants of varying kinds, also in brick-and-mortar locations. That is because AMEX charges a fairly high transaction fee to merchants. Some merchants have decided it is simply not worth the fee to use this payment method and so they clearly do not accept it from customers. However, many online casinos do not have this concern and you’ll frequently find AMEX as a deposit option.

Prepaid card options are not as well known but are certainly a good payment method for online casinos, especially for those who want to specifically budget a certain amount of money. They are also more anonymous than other types of payments, since these cards can be preloaded and even given as gifts. Whether you’re looking to protect your personal information, to manage your bankroll, or both, a prepaid card like the PaySafe Card could be a great choice for you.

E-Wallets, Digital Wallets, Mobile Wallets

These payment methods go by different names but all refer to the same thing: an online account where you can store your funds but also access them and make digital payments easily, either to merchants or to other users. One of the most popular and widespread examples of an e-wallet is PayPal, which was founded in Palo Alto, CA in 1998 and benefitted from the tech boom.

PayPal is now available worldwide. It’s popular because it is considered to be very safe and secure. PayPal even has introduced special features like business banking and digital credit cards for its users. You can even get a physical card to access your digital wallet through PayPal.

Note: When researching, we came across conflicting information about PayPal in the US. On one hand, its website says it prohibits use by merchants in the US and for US-based account holders when it comes to gambling activity, and it provides a long list of what activities fall under the umbrella of games of chance. However, it also says that merchants must be pre-approved to offer PayPal as a payment method, and that it can only be used within jurisdictions where the activity is legal.

We believe this is down to the differing laws between US states when it comes to online casino gambling. Not all states allow it legally, so PayPal seems to take a “better safe than sorry” approach and only allows online casinos within legal states to use it as a payment method. It is possible that some platforms find a way around this, but we would also recommend sticking to the safe side and only bet on licensed platforms in states where online casino gambling is legal.

Aside from PayPal, there are several other digital wallets you might want to explore for online casino deposit methods! Neteller, Payz (formerly known as EcoCard and EcoPayz), PayNearMe, MyCitadel, Pay By Phone, Venmo and Skrill are other popular e-wallet options that may be available at US online casinos.

Direct Transfer from Bank

Moving beyond cards and digital wallets, you can also use your existing bank account to transfer money into an online casino bankroll in some cases. Wire transfers are the most straightforward way to do this and work with most banks. This might be preferable when it comes to depositing (and withdrawing) larger sums of money at once. However, note that there are sometimes fees associated with wire transfers. For more specific advice, contact your bank or your casino platform to find out what the associated costs may be.

Similar to a wire transfer is something called an e-check. An e-check is like a paper check but it is created digitally, to lessen the hassle of mailing a check. This can be a good go-between method for making deposits on online platforms.

Cryptocurrencies

Cryptocurrency and gambling is a hot topic, but also a tricky one. Cryptocurrencies like Bitcoin have become increasingly popular in the last few years. Indeed, many people see them as the way of the future and want to increase the ways that these currencies can be used. It makes sense that a digital application for crypto would be available, as with depositing via an online casino.

However, the reality is not so straightforward. While some countries have moved to allowing cryptocurrency as an online payment method at casinos, others like the US are more cautious. When it comes to legal, licensed and regulated online casino sites, you may not find this option because the site has a responsibility to abide by certain laws. For example, they need to verify the user’s data like name and age to make sure they are not a minor.

Part of the appeal of crypto is the security and privacy that comes with it, since it isn’t linked to a traditional bank account. But for online casinos, this can be a problem. In conclusion, you might find crypto as a payment option on some so-called “crypto casinos,” but these are likely not licensed within the US, and using them can be risky.

Difference Between Online Casino Deposit Methods and Withdrawals

Withdrawals, or cashouts, are the other big part of the equation when it comes to online casino deposit methods. Afterall, if you can’t withdraw your earnings safely, then what is the point of making a deposit and playing in the first place? There are a few issues that come up with cashouts that we want to warn you about, so you know what to expect when you start to use online casinos.

To start, the withdrawal or cashout methods available are often limited to the ones you used to deposit. This is for your own safety, so that unauthorized accounts cannot easily access your online bankroll and take out money without your permission. However, this can pose a problem if you have only deposited money with a credit card, for example. You can not withdraw money back onto a credit card. You can only withdraw money into an e-wallet, crypto wallet or checking account and then use that to pay off a credit card, if desired.

So, when choosing between online casino deposit methods, you might be better off using the same account or payment card that you want to receive your winnings with as well. Here we come to another common pitfall: processing times. For various reasons, processing a cashout can take some time with online casinos. It isn’t always instantaneous. E-wallets like PayPal usually have faster processing times, while transferring to a traditional bank account typically takes the longest.

You can even request a payment with a paper check, which you would receive in the mail and then deposit like any other check. However, this method probably takes the longest out of all options. It also may cost you. Some payout methods cost a fee and have a minimum withdrawal amount in order to process. Always check the T&Cs before you make your choice so you aren’t hit by any unpleasant surprises on this front!

The last note we want to make about cashouts is that you might be required to provide additional identity verification when withdrawing your winnings from an online casino. A casino may ask for an ID and proof of address, for example. Please allow for this added step and the time associated with it. Usually, the first withdrawal takes the most time, and subsequent withdrawals go a bit faster.

History of Online Payments Explained

When it comes to payment methods of online casinos, things have certainly changed over the years. That is due to new technologies and currencies coming onto the scene. Different platforms and countries also influence each other. We mentioned that in some countries, like in Latin America, crypto is a legally accepted form of currency online. It is possible that as some governments try out new systems, others will take the cue and adopt these methods too.

But how did we get where we are now in terms of online casino payment options? The biggest changes we have seen by far are in terms of security and the wide range of convenient, digital options available for customers to pay with. Many technological advances have occurred side by side.

The first online shopping marketplace opened in 1982, but at the time, making a digital payment was far from easy. Amazon and eBay launched later, in 1995, with PayPal starting up in 1998, while the first online casino site opened in 1994. Back then, bank transfers were still the most obvious way to pay for items online. Gradually, credit and debit cards integrated with new e-commerce platforms to offer more secure payment methods for customers.

As online shopping and online platforms have increased in popularity, so has demand for fast, easy ways to pay. E-wallets have skyrocketed in usage, not only in the US where PayPal was founded, but internationally. PayPal is now available in many different countries, and other countries have created their own popular e-wallet services, too. With pressure from consumers, more of these options have become available on online casino sites.

In 2009, Bitcoin became the first cryptocurrency, showing the world that the evolution of digital payment methods was far from over. In 2021, El Salvador adopted Bitcoin as an official currency and was followed by the Central African Republic. Crypto is a relatively young development and it remains to be seen how it will be adopted around the world in years to come, including as a potential legal tender for online casinos.

Conclusion

In conclusion, payment methods have come a long way since the ’80s and ’90s, when online banking systems were still in their earliest stages. Now, there are so many ways to pay beyond traditional credit or debit cards. We hope this article has given you an overview of what exactly is out there when it comes to digital payment methods. Always be sure to read the fine print in order to avoid long processing times and avoidable fees, and enjoy playing!