Do Banks Care if You Gamble?

All licensed online casinos accept credit and debit cards for deposits. However, your deposit may have been declined by your banking institution recently. Alternatively, the gambling site may have advised you that Revolut, Discover, and AMEX deposits are not recommended due to the high risk of being declined.

Many large banking institutions won’t process any gambling transactions. Or when they do, different purchasing rules may more than likely apply.

So do banks care if you gamble? Large financial institutions do, and many factors determine whether your bank will accept your transaction. Firstly, the bank considers which gambling venue you’re using, whether gambling is legal in your state or country, and your card’s payment network.

US and international gambling laws have been known to change overnight, and banks would rather steer clear of any gambling transactions than run the risk of them breaking local gambling laws.

Smaller financial institutions tend to accept gambling transactions with debit and credit cards more frequently. In these cases, the banks take no responsibility for your losses or actions. Customers can also set limitations on their cards and block gambling transactions altogether if they wish. This is typically done through the bank’s mobile application.

The Implications of Using Your Credit Card for Payments

It can be argued that the banks which reject debit and credit card deposits to online casinos and sportsbooks are protecting their customers. Before you attempt to use your credit card the next time to make an online gambling deposit, you may want to consider the following before proceeding:

Read the Small Print

Always read the small print of your credit card agreement carefully. Most credit cards accept gambling deposits as cash advances, and you’ll most likely get charged a hefty fee. Usually, banks charge between 3% to 5% of the advanced cash amount. For instance, for a $1000 cash advance, you’ll pay between $30 to $50 in fees.

Higher Interest Rates

Interest rates are much higher for cash advances. However, it’s not recommended that you borrow money to gamble. It should be a fun experience, and you should only play with funds you can afford to lose. If you’ve been playing casino games or betting on sports with borrowed money, we urge you to look at our Responsible Gambling section.

Grace Periods

Credit card repayments have no grace period. Your bank expects you to pay back your cash advance in full at the end of the month. Under normal circumstances, you’ll be required to pay back your debt (and interest) within 21 days before you’ll be charged additional interest.

Pay Over Time

Some credit cards specifically disallow the “Pay Over Time” feature for gambling-related deposits.

Rewards

When you use your credit card for online gambling purchases, the bank will most likely exclude those purchases from the card’s rewards system. You could potentially lose cashback rewards and travel perks.

Final Thoughts

We trust that we’ve cleared up most of your questions. However, if you want to be 100% sure whether your financial institution will process your debit or credit card online casino and sportsbook transactions, in that case, it’s best that you check with your bank directly. We strongly advise against using your credit card for online gambling. It’s a bad idea, and you could quickly find yourself in trouble, landing in credit card debt.

Always avoid overspending when you gamble online, and stick to a budget. Banks have been known to reject mortgage applications due to frequent purchases made on gambling sites. When you apply for a mortgage, the lender will require a copy of your bank statement going back three to six months.

Your mortgage application could be rejected if the lender finds that there’s erratic gambling or spending activity.

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Kevin Flynn

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Kevin Flynn is a lean start-up business consultant, PowerMBA, and Senior Financial Markets Editor at Investors Prism. He lives in Leominster, Massachusetts, with his wife…

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