NETELLER extensively uses the ACH system – that which allows direct transactions (deposit, withdraw) to customer checking accounts with member banks. If I understand correctly they were one of the pioneers to exploit this method and was crucial to their early success during the first round of clampdown on online gambling credit card transactions.
But NETELLER has also diversified and grown its non-US business into Europe (European ACH style system), Japan and purchase of 1-pay Asian payments. But just what percentage of their business is non-US I have no idea. My hunch is their US-business is mostly subsidizing their operations in other markets.
In fact, I noticed that my ACH deposit transactions into NETELLER has been experiencing a delay (since August). I’ve had to wait a good 10 days before an ACH deposit can be used. Their e-mail support has been terrible, too since August. Just this week, I received no e-mail confirmation that my support e-mail was received.
Merchants would be prudent by starting to shift usage of other European payment systems such as MoneyBookers and Click2Pay. The industry will not run out of alternative payment systems – but indeed it will add another layer of complexity to payment processing. Non-Visa & Non-MC cash/debit cards will definitely be considered seriously despite the higher merchant fees – some companies like TREOCard and G-PAP may be well poised to capitalize on their opportunity.
Of course in the UK, Paypal happily accepts online gambling transactions. :banger:
some links:
http://www.MoneyBookers.com
http://www.TrioPass.com http://www.G-Pap.com
http://www.Click2Pay.com
http://www.uKash.com