posted on June 10, 2002 04:25:01 PM new
It definately won't be one of the "GUTLESS" wonders and it could be him and some others used as scape goats.
[ edited by club1man on Jun 10, 2002 04:26 PM ]
posted on June 10, 2002 05:54:04 PM new
May 1, 2002 Smart Business Magazine
"Denied"
When Cynthia Haines used her credit cards to gamble away more than $70,000 at online casinos, the banks came after her for the cash. But instead of paying up, she sued them, claiming the banks should never have let her bet the money online in the first place because she lived in California, where gambling is illegal. And she won.
It's a remarkable story—and frightening to credit card banks and companies. To keep the Haines case from becoming precedent, several companies have simply stopped honoring online gambling transactions—and some aren't stopping there. They are also denying or limiting transactions with porn sites and more. American Express's policy goes a bit further in not allowing card acceptance by "high-risk" merchants, due to the high dispute levels over digital adult content download charges. "There's no proof that it has been delivered, and it's extremely costly to be the intermediary," says American Express spokeswoman Joanne Fisher.
And it's all on the level. With gambling, MasterCard and Discover deny payments based on legality. Cathy Edwards, a spokesperson for Discover Financial Services, says that since 1999 Discover Card hasn't knowingly signed merchants that offer Internet gambling. "We do this because it's very hard to regulate this industry," Edwards says, "since online gambling laws vary from state to state."
Internet casinos are beginning to feel the pinch, so Matthew Katz, who operates eCasino Solutions, a Los Angeles–based consultancy that's trying to legalize online gaming, is looking for solutions. Katz believes the key to legitimizing high-risk transactions is to provide reasonable alternatives to credit cards, and he is helping to launch two companies interested in generating new payment options.
"Visa and MasterCard don't want to police the Internet, but they've [had to] because no one else is willing to or knows how," Katz says. "I believe that over the next six months we'll see a huge difference in how money is transferred."
http://www.smartbusinessmag.com/print_article/0,3668,a=25143,00.asp
[ edited by Flaoisland on Jun 10, 2002 05:55 PM ]
posted on June 10, 2002 10:41:52 PM new
Flaoisland -
Good article! That's incredible. I can't believe someone had the nerve to sue for $70K - after gambling it away... and then the fact that she won!!! People will never cease to amaze me.
It should be very interesting to see how it all plays out, and how all the 'players' end up.
It's funny because you have to wonder after reading a story like that, how many people are going to 'test' the system.
posted on June 11, 2002 12:54:38 AM new
(((I can't believe someone had the nerve to sue for $70K - after gambling it away... and then the fact that she won!!! People will never cease to amaze me.)))
Its kind of like the people who buy things and use PrayPal to pay for it. Then when they receive the items they leave positive feedback for the seller and then file a complaint that the item was never received. Of course PrayPal usually gives the fraudulent buyer their money back and lets them keep the sellers item to boot. What a company. LOL!!!
posted on June 11, 2002 08:27:58 PM new
I don't really understand how Paypal can accept the illegal online gambling. Beyond Visa Mastercard policy, what do they do if someone gambles and then just charges it back? Wouldn't they automatically lose each time? Where is Mr. PayPal in this entire talk?
posted on June 11, 2002 10:35:55 PM new
paldemon is with the legal staff trying to find a way to BS people into believing PAYPONZI knows nothing about this.
posted on June 17, 2002 06:34:13 PM new
Perhaps it is foolish, but I am waiting for an answer from Mr. Paypal. Why does Paypal not just use Google to find all these illegal gambling sites that accept Paypal?
posted on June 17, 2002 09:10:41 PM new
It's simple. It's big bucks and they'll turn their heads as they do on all schemes, until presure comes and then they'll deny all knowledge.
posted on June 18, 2002 10:44:22 AM new
Flaoisland
I know you're still hoping for an answer from Damon - but I don't think he's going to answer this one.
It's like I posted on the previous page - they know these On-line casino's are out there (they even have a special category for them), and they know they accept PayPal - they just classify them as 'high risk' accounts, and justify letting them do business by charging them more in fees. Seems crazy to me - but where there's $$ to be made - there you'll find paypal trying to get it's 'share' - legally or otherwise.
posted on June 25, 2002 11:22:26 AM new
Does this answer the question.
on June 14, 2002, the New York State Attorney General announced an agreement under which Citibank has agreed to block online gaming transactions using its credit cards.
posted on June 26, 2002 06:37:02 AM new
Clubman1: Thank you for the information. But can Paypal users just use Paypal to evade the state of New York and Citibank Visa? Do those other other documents you posted say yes? Is it with the blessing of Paypal?
[ edited by Flaoisland on Jun 26, 2002 06:38 AM ]
posted on June 26, 2002 12:13:36 PM new
In checking out emails that have been sent to me and looking in the search engines, it would seem that payponzi is a HOTBED for illegal activity. To say that their unaware of this would be like saying walmart didn't know what kmart was doing. They have basically stated in their SEC filing that until someone charges them with aiding or abetting or money laundering their going to continue to do it.
posted on June 29, 2002 03:23:27 PM new
Wow. This article sounds even worse than we were discussing. It sounds like the NY AG is giving a not too subtle warning to Paypal to stop!
posted on August 23, 2002 12:40:06 PM new
"The Attorney General's office said PayPal had become the preferred method of payment over the past year as more credit-card issuing banks have begun to block direct payments to Internet casinos. Spitzer's office estimated that PayPal has 260 online gambling merchants using its services."
"But many gaming sites, he added, encourage use of PayPal and related services, and they often disguise gambling payments as cash transfers, "undermining the efforts of credit card issuers to block gambling-related transactions."
