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HSBC Raises Interest Rate For Credit Card Use At Online Casinos

The changes in the policy of HSBC bank concerning their credit card services and expenses will also affect their online casino gambling. A rise in the interest fee for operations at online casinos by leading British bank HSBC is explained by the change in HSBC's policy and not specifically targeted at the online gaming industry. The report of the new bank policy stated that the bank will be charging a new fee for the credit card payments that are directed by the credit card companies.

HSBC is going to hike their fees on the charges for players that use their credit cards during games and raise it up to the level of cash-advance payments. This change will take effect on February 1, 2007. Its importance to gamblers is that the interest will be much higher than what it is now, which is the standard purchase rate for all of telephone and online casino gambling. The cost will rise between 15.9% percent and 22.9% percent to a new interest rate of between 21.9% percent and 27.8% percent.

The usual online transactions regarding gambling will be more costly, but there is also a positive side with this kind of development as players will no longer be charged the one-off fee, which is in place when involving purchase of foreign money and other agreements. The statement explained the decision is due to the general fear of loans that are going bad and does not target gamblers who use their credit cards for their online dealings. HSBC's spokeswoman commented that the bad loans are not the usual gambler behavior, but a general problem. HSBC, together with other credit card companies, will raise their fees for online casino transactions.

But some other organizations will still stick to the older and lower rates for their online gambling dealings. Some alternative payment methods give the online casino gamblers a way out of the higher rates for the time being. One of these methods is PayPal; a well-known online payment agent charging the usual rate for an online purchase.

02/25/2009 19:39 PM

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