Online gambling is one of the world’s fastest-growing pastimes. It is probably the entertainment form that has spread the most like wildfire across the globe in the past decade. It appeared as a viable hobby in the mid-1990s, and today, this industry is projected to rake in $107 billion, set to grow at an annual rate of 6.51% in the next four years.
It is a sector gaining mass adoption, with multiple developed countries like Germany and The Netherlands deciding to regulate it post-2020. And now, the US is getting its seventh state (Rhode Island) to do so. Those familiar with playing games of chance over the World Wide Web or betting on sports know that fast payouts and convenient transactions are paramount for enjoying this hobby. Hence, on account of this fact, various payment methods have been developed for Internet gambling, with many others adopted by operators within this landscape. Electronic checks are one of them.
What is an electronic check (eCheck)? It is a digital version of a paper one, allowing people to transfer funds from their bank account to a recipient one. The advantages of using this method are low transfer costs, security, and reduced chargeback risks without the need for credit card use. It often gets cited as an ideal pick for recurring payments, with its notable disadvantages being slow processing times, limited acceptance, and a requirement for sharing sensitive banking information.
eChecks vs. Credit Cards
What is the main difference between eChecks and credit card payments? The chief and most distinctive one is that they authorize a direct transfer of funds from a user’s account. Thus, they are similar to debit card payments. A person can only pay if they have sufficient funds. On top of this, merchants typically authorize eCheck transfers by asking for customer authorization, whereas customers customarily initiate credit card transfers.
As a rule of thumb, eChecks are safer than card options. They limit the potential for fraud. That said, there is usually no ACH (Automated Clearing House) processing on weekends and holidays, networks this system uses, leaving customers’ transfers unable to go through during these days. Moreover, eChecks are slower than credit cards despite carrying lower fees.
eChecks vs. Digital Wallets
Digital wallets appeared on the scene in the late 1990s, when PayPal essentially started to pioneer this financial technology. Quickly after the establishment of this method, many people saw their potential for processing gambling transfers online, and this notion gave birth to multiple digital wallets designed specifically for this purpose. The two prime examples of this are Neteller and Skrill (formerly Moneybookers), which were invented at the beginning of the 2000s and dominated this decade.
In the eyes of many online gamblers, e-wallets or digital wallets are better than eChecks because they are faster, offer robust security features, and make transactions swifter. Unfortunately, they are not as universally accepted. Still, they can get funded through more sources, often boast super-user-friendly interfaces, and offer detailed transaction histories/receipts through an app. Also, the number of online casinos that accept eCheck is smaller by a substantial margin than the number of platforms allowing digital wallets.
eChecks vs. Cryptos
Cryptos are now getting closer to becoming a mainstream payment method. The technology debuted in 2009 with the rise of the Bitcoin blockchain. In the online gambling arena, these transaction picks began to get accepted in 2011/12, only at provably fair gaming sites that featured simple games like dice to users. It wasn’t until 2014 that one could play a modern slot with virtual currencies, and nowadays, this is a possibility at thousands of Internet gaming hubs.
EChecks are more of a mainstream payment method, with functionalities most people will get the hang of more easily. Cryptos have a more sizeable learning curve, and their transactions are irreversible. If a user sends coins to the wrong wallet address, he must wave those funds goodbye. Because cryptocurrency prices can be so volatile, the value of assets held in virtual money can be worth something one day and have a different value the next. That is why many gamblers avoid playing with them, preferring to stick to fiat money, which provides more stability, operating on an established infrastructure that ensures the reversal of missent transfers.
eChecks vs. Other e-Payment Options
The upper hand that eChecks has compared to virtually all e-payment choices is they supply a direct link to the user’s bank account. That means they can facilitate a straightforward fund transfer without an intermediary. This makes the deposit process simpler for individuals with no experience with more modern payment options. It gives them a sense of reliability because they use a banking infrastructure that gets deemed safe the world over.
Yes, the processing times are slower here when stacked up with e-payments. But, most people who utilize this method are willing to sacrifice that for the familiarity and security offered.
To Wrap Up
In the eyes of many, eChecks are a transaction pick most suitable for people with a traditional banking mindset. In other words, those who have gotten comfortable writing/receiving checks and working with banks.
