EBay Inc. (NASDAQ:EBAY)’s Paypal Takes A Stand On Wagering Transactions
The rejections by eBay Inc. (NASDAQ:EBAY)’s PayPal as well as many of the leading credit card issuers for internet wagering transactions can certainly threaten this promising industry expected to cross $7.4 billion in annual revenue in next four years. However the rejection comes over the concerns related to potential liability for underage wagering or similar violations, explains American Bankers Association.
Mastercard Inc. (NYSE:MA) and Visa Inc. (NYSE:V), however allow gambling related transactions on their credit card networks in states where it is legal; leaving the rest of decision unto the card issuers. Internet wagering is already permitted in Delaware and Nevada and New Jersey is going to be third and the largest state to do so starting November 26, 2013. However the players’ MasterCard and Visa transactions are getting rejected even in Delaware and Nevada. State officials are communicating with credit card issuers related to the matter.
The PayPal Stance
Citing its internal policy, eBay Inc. (NASDAQ:EBAY) owned PayPal cleared that it doesn’t process any kind of gambling transactions. However it also revealed that such policies are subject to future change. The prohibited activities under ‘PayPal Acceptable Use Policy’ underscore not to use PayPal service for activities that might involve gaming, gambling or any activity with an entry fee and a prize.
Under list of such activities, eBay Inc. (NASDAQ:EBAY)’s PayPal lists casino games, lottery tickets, sports betting, horse racing, and sweepstakes among others, unless the operator has obtained required approval from PayPal. Even after obtaining the approval, the operators as well as customers are required to be located in jurisdictions where such activities are legally permitted.
The Same Story
Bank of America Corp (NYSE:BAC) spokeswoman, Anne Pace said that the bank doesn’t allow such transactions; however, it is reviewing whether to permit such transactions in the future.
Similarly American Express Company (NYSE:AXP) and Wells Fargo & Co. (NYSE:WFC) spokeswomen also said that the issuers do not allow the use of their cards for any activities related to gambling.