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What Is A Processor?

Discussion in 'Payment Processing Issues' started by david92506, May 17, 2012.

    May 17, 2012
  1. david92506

    david92506 Dormant account

    I'm wondering if other members on CM are confused as I am about processors and I'm hoping other people will ask questions about them too.

    1. If I owe 20 people money and I go to The Bank of America and say, "Wire these 20 people money" is the Bank of America the Processor?

    2. When casinos say, "We are having processor problems and there will be a delay in payments" are they actually saying, "We are having problems with our bank and can't send the money right now?"

    3. I assume online gambling is legal in their country. So why would a casino have "processor issues?"

    4. Why can't a casino go to their checkbook and write a check like any other business? Are their checks not acceptable in other countries?

    5. With all the wire transfer problems, why can't the casino have the bank issue a cashiers check, a moneygram or some other form of check that is acceptable world wide?
    2 people like this.
  2. May 17, 2012
  3. bpb

    bpb Banned User - repeated violations of rule 1.14 (tr PABnorogue PABnonaccred

    It is not legal for a us bank to process transactions involving online gambling. Google UIGEA. This answers most of your questions.
  4. May 17, 2012
  5. nepatsfan01

    nepatsfan01 Experienced Member

    I have to say, you have asked questions I have wondered for a very long time but never asked! I would love to see what the answers are!

    I do know the answer to #5 - Because they don't want to :p That's all I can seem to get out of the one casino right now that is saying they have processor delays.
  6. May 17, 2012
  7. anniemac

    anniemac Ueber Meister MM PABnoaccred

    Texas, USA
    Processors are like 3rd party billers, or in this case, payers.

    Casinos don't handle actual money transactions. They use processing companies to charge your card and send you your withdrawal.

    These processors, US facing ones, come and go like flies. One works for a while, then US gov. gets wise and a new one has to be found. Or the processor takes off with the money.

    This is my take on how all this works.
    1 person likes this.
  8. May 17, 2012
  9. david92506

    david92506 Dormant account

    Would PayPal Be Considered A Processor?

    Would Paypal be considered a processor?
  10. May 18, 2012
  11. KasinoKing

    KasinoKing WebMeister & Slotaholic.. CAG MM PABnonaccred webmeister

    House-Husband and Casino Advisor
    Bexhill on sea, England
    No, I don't think so.

    The way I see it, a "processor" is a 3rd party who decides when & how to transfer money between 2 parties (e.g. Between Player and Casino)
    With PayPal it is the end users themselves who initiate the money transfers.
    BTW, you do know that USA players can't use PayPal at ANY online casinos?
    We can in Europe, but you can't over there.

    Back to your original post (GREAT questions, by the way!)
    What I think they mean in the majority of cases is "We haven't got enough money in our processor's bank to pay everyone; it's our fault, but we are going to blame the processor instead so it doesn't make us look bad..." :(

  12. May 18, 2012
  13. Mousey

    Mousey Ueber Meister Mouse CAG

    Pencil Pusher
    My take on payment processing (particularly for USA) HERE.

    It's kind of like... ummm... Trying to think of an everyday example... Oh!

    Where I work, we do not accept debit or credit cards. But companies are always after our business to 'process' CC transactions. They would provide the little card slider thingy, and they would see that we got our money and the money comes out of the customer's CC -- all for a fee of course -- depending on the company, and services provided, either monthly or per transaction fee... PLUS most CC companies themselves will charge a 2 - 5% per transaction fee. Due to the costs, our company would have to raise our prices at least 10% across the board if we accepted CC/debit cards.

    Anyway, that's my idea of kinda how it goes...

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