How Interac Online and Wire Transfer Became the Most Popular Online Casino Payment Methods in Canada
The history of online casino gambling in Canada has been plagued with a major problem, how exactly do Canadians get their real money in a casino so they can play? Although technically legal in Canada, gambling at online casinos in Canada has legal issues and it is these issues that have made casino banks a major problem. Interac, with the help of Gigadat Solutions Inc, helped to dispel these problems and now Interac Online and Electronic Transfer has become the gold standard for online casino payments.
Prior to the early 2000s, Canadians could play at online casinos, poker sites, and sports betting using their credit cards. Visa and Mastercard, along with the big banks, put an end to this and the race was on for Canadian players to find other ways to continue playing online. Neteller and Skrill (Moneybookers) were already established internationally to process this type of transaction and quickly became the banking method of choice in online casinos.
Legal issues affecting online casino payment processors
Legal problems started as early as 2007 for Neteller and Skrill. In September 2006, the US Senate passed a bill that made online gambling illegal in the United States. In 2007, Neteller was billed by the US government Along with the illegal processing of online gaming transactions and ESI, a Canadian payment provider has also been charged. This has led to an avalanche of legal problems in the industry. Calvin Ayre, the famous Canadian online gambling mogul, was also evading the law at the time and ended up leaving his Bodog-related assets at Kahnawake gambling, located on the Kahnawake reserve outside of Montreal.
This brings us back to Canada where Neteller and Skrill also operated. Although no bill has ever been passed in Canada making internet gambling illegal, the gray area leaves too much room for interpretation. Online casinos can only be licensed by provincial governments, like the Play OLG casino, and the most popular ones in Canada are all licensed in foreign jurisdictions like Malta. The question of legality thus arises from jurisdiction and the fact that the Canadian government cannot prosecute foreign companies under the Canadian Criminal Code. The only possibility of being sued is if the online gambling business has a physical presence in Canada. Since Neteller and Skrill have a physical presence in Canada, they ultimately determined that the risk was too great to continue operating in the country.
Explosion of new banking methods at Canadian casinos
Over the years that followed, there have been many more payment providers in the online casino banking arena. Recently, companies are marketing electronic wallets like ecoPayz, iDebit and Instadebit. PayPal has never entered the online casino market at all, and Apple Pay just started to be accepted this year.
A common way for many Canadians to deposit real money at online casinos is to bypass payment processors altogether and use prepaid cards. Paysafe, Neosurf, and Flexepin are all widely accepted at most online casinos in Canada. These cards are available at convenience stores and gas stations, but can only be used to deposit cash. If a player wants to get paid, they will need to have some other method of withdrawal, in most cases the archaic bank transfer or check in the mail.
Why Interac Online and Wire Transfer have become so popular
This is where Interac became a revolutionary revelation for online casino players. Interac is the best known and most used payment processor in Canada. It’s the most trusted financial services brand in Canada, ranked 4the on the Gustavson Brand Trust Index from the University of Victoria. All Canadians who have a bank account are familiar with Interac e-Transfer. Some of the major banks and credit unions also offer Interac Online.
Just under two years ago, the first online casinos began offering Canadian players Interac Online as a deposit method. LeoVegas was one of the first online casinos to do so, but within a year every serious online casino brand in Canada was offering Interac.
The company behind this partnership is a third-party payment processor, Gigadat Solutions Inc. It offers the service of connecting Canadian banks with merchants and specializes in gaming, gambling and casinos in line. They also recently in partnership with MiFinity offer their payment method in Canada, leveraging Interac’s large customer base.
The difference between Interac Online and e-Transfer
Interac online casinos have become so popular due to the wide reach of the banking method and the ease of use. According to Canadian online casino banking specialists realcasinos.ca, there are two main types of online casinos, Interac Online Casinos and E-Transfer Casinos. Interac Online is a direct banking method that transfers funds directly to the casino using Gigadat as a third-party processor that electronically connects the two parties. The wire transfer, on the other hand, is processed by the financial institution. Gigadat always provides the information necessary to complete the transaction and is part of the electronic funds transfer.
There are important differences between Interac Online and Electronic Transfer. Both casino banking methods can be used for deposits, but only wire transfer can be used for withdrawals. Interac Online is only available at certain financial institutions, including RBC Royal Bank of Canada, TD Canada Trust, and First Nations Bank. If the debit card is associated with a Visa or Mastercard, Interac Online will not be associated with it. Interac e-Transfer is available at all banks and credit unions in Canada. Wire transfers also take longer to process while Interac online deposits are instant.
After nearly two decades, Canadians finally appear to have a stable, secure, and widely available casino banking method for use at online casinos in 2021. The companies that control the method, Interac and Gigadat Solutions, are Canadian and not will exit the market only if it is regulated.