The AFR reports that the Macquarie Bank has bans credit cards for gambling.
The changes, to start on July 1, will mean any transactions classified under the merchant codes as gambling will be blocked when the card holder tries to pay.
The move is in response to growing regulatory and government concern, both in Australia and overseas, about easy access to credit by problem gamblers.
Other card providers, including ANZ, Bankwest and CBA offering cash advance rates on credit cards, typically charge interest rates of more than 21 per cent. It is not known whether these, or other banks will be introducing a ban.
This story will continue to evolve. A benefit for physical shops is that they can easily take cash as a form of payment. Also, software used in shops that sell items from multiple categories does not differentiate what is in the basket.
just like NZ,ban all gambling on credit cards..
Used to be the same here in Australia until a few years back.
Won’t do any harm it it reverts to this status. May even slow down some on line junkie sales.
Fine until cash is banned. It will come.
Today, there is no visibility to the financial institution at product barcode level.
Some software companies are in discussion with the government about this for their cashless debit card.
Not even the banks know the products in a basket. Today, all they know is the merchant.
How does this affect a retail shop?
Our POS system fires a total value at our Tyro terminal. The Tyro terminal doesn’t know if the customer purchased a newspaper or lotto, or a transaction containing both a newspaper and lotto.
Also, years ago, we as retailers weren’t legally allowed to process any gambling with credit cards. Then we were, and now you’re saying it’s going to be outlawed again?
I’m only sharing here what Macquarie announced this week. In ym comment I demonstrated the challenge of compliance.
I doubt with all conviction that we will ever see a cashless economy or better a cashless society.
Individual freedom has always overcome oppression therefore stands to reason humans will invent there own trade, cash by another means, Bitcoin of something like it.
As I see it Macquarie is using this issue to cast itself as a caring sharing organisation which looks out for all including the poor and oppressed etc. Don’t you now feel totally impressed by Macquarie a terrific organisation that’s out for us, the people first.
Graeme,
I’m not doubting human ingenuity.
Leon I understand. It’s self preservation that will kick in when the chips are down.
My understanding of online gambling is that you make payment into your account via a credit card. Surely, if a credit card ban on gambling products came to fruition, this would wipe out online gambling. Bring it on.
Gary,
It will help, however if they really want to use on line facility they will use EFTPOS Debit card.
Recon you would be surprised to know how much of online gambling floats on credit. Even lotto.
EFTPOS cards have always been allowed….the customer is only spending money that they physically have in their bank account. Once that runs out, the card won’t allow any further transactions.
Unlike credit cards that will actually allow the customer to spend $1000, $5000, $50000 as per the card limit
I went into a newsagency today spent $52 on Direct Debit EFTPOS and was charged an extra percentage for the electronic transaction.
It’s the Banks of course that charge the retailer however the angst from other customers according to the owner of the store is that the store cops the blame.
If Tab Corp absorbs the fee then internet gaming in Lotteries may firm therefore the difference is back to square one. In retail, to match,you either absorb the fee or try to enforce Cash. If the Govt bans credit cards for gaming then it reverts back to cash at retail. Online may overcome this by discounting purchase by opening accounts with prepaid deposits, who knows? Best of Luck.
Meanwhile in Europe, moves towards treating betting like smoking are beginning to emerge. Betting companies are volunteering to curb advertising to head off the politicians.
Kerbing credit cards could be the tip of the iceberg.
Or even curbing… Night
And this discussion feeds into the cashless retail discussion.
Or even the opposite it may support the cash is real “spend” retail discussion.
Jury’s out.
It’s official.
Woolworths are advising their customer holders of Woolworths Credit Card (visa) that it can no longer be used for on line purchase of Lotto. or Lottery products.