Breaking News
Home / Loan / How Does Payment Card Industry Compliance Work in the Online Casino Industry?

How Does Payment Card Industry Compliance Work in the Online Casino Industry?

 

The rise of identity theft has contributed to cases of fraud, a serious crime that can cause staggering financial losses for companies. In 2018, losses of $1.48 billion were attributed to fraud by the Federal Trade Commission. Of all forms of fraud, credit card fraud is the most common. Because of this and the popularity of online gambling sites and the money involved, the online casino industry is rigorous about payment card industry compliance.

 

How credit card fraud works

 

People who commit identity theft will use the stolen identity to secure a credit card in another person’s name so that they can buy goods and leave the bill unpaid. Tracing the bill through identity will result in claims against the person whose identity was stolen, not the thief. The online gambling industry is growing at a fast pace and is an ideal target for criminals. The lure of a big payoff can attract these people because they are looking for ways to make quick money. Individuals who have paid a small game fee have, in some cases, won millions of dollars. In the online casino industry, individuals use fraudulent credit cards to gamble, ensuring that they have a chance of scoring a big win without the risk of financial losses. 

 

Risks to consumers

 

When any business is affected by fraud, it will lose money. They may also be affected in a way that involves insurance claims, which will result in an increase in their insurance rates. Companies may need to increase their prices to make up those losses and cover the higher operating costs they face as a result of fraud. This means that, ultimately, it’s everyday consumers who buy goods legally who end up absorbing the cost of illegal activity. Every shopper who uses credit cards is also at risk of identity theft if the company they do business with has their data stolen. Online casinos aren’t simply a target for people who commit fraud who want the thrill of gambling with no risk. Because of the volume of business that online casinos generate, they are an enticing target for individuals who hack into businesses to gain unauthorized access to data, including client information and credit card numbers.

 

PCI compliance

 

PCI compliance is a measure introduced to protect businesses and consumers from credit card theft. The largest credit card companies joined together to create the Payment Card Industry Data Security Standard  (PCI DSS) to improve security during transactions and protect themselves from illegal activity. Online casinos and their sister sites do high volumes of business annually. As of 2016 the online gambling industry was worth almost $400 billion. With the high rate of growth in online gambling in recent years, it means online casinos will qualify as a level 1 merchant under PCI guidelines, which means they must follow the strict DSS guidelines to be PCI compliant.

 

Operating with PCI compliance

 

One way that online casinos protect themselves and consumers is by employing a PCI compliant contact center to process credit card transactions for their business. The contact center is responsible for staying up to date with the latest compliance regulations and ensuring their staff are adhering to them. Online casinos can be confident that the latest security protocols are being followed. Credit card companies will be willing to continue doing business with online casinos who are PCI compliant because this mitigates their risks as well. The added benefit is that maintaining PCI compliance will satisfy the casino’s insurance company requirements for operating procedures, which will help the casino keep their business costs low while securing customer data. Because online casinos operate using transactions placed over the phone or internet, employing a contact center that is PCI compliant is the key to ensuring the PCI DSS is followed.

About Muhammad Kazafi

SEO Expert

Check Also

Obtaining Cheap Car Insurance With No Money Down

When you buy a vehicle getting insurance for it is very much important. Vehicle is …