The Pros & Cons of Using e-Wallets
In this day and age, cyber criminals are working overtime, trying to get access to our personal information. That includes information related to our financial resources. It’s becoming a huge problem that needs to be addressed at every turn.
If you are an iGaming enthusiast, you are exposing yourself to another way that criminals can get access to your money. It only takes one successful criminal mind to wreck your financial world today, tomorrow, and well into the future. However, technology has made strides in protecting consumers with transferring money for situations like online gambling. One such example is the rise of e-wallets to facilitate online casino deposits and Withdrawals.
Of course, we would never make such a recommendation if we didn’t believe the pros of doing so might outweigh the cons. With that in mind, let’s take an in-depth look at the pros and cons of using e-Wallets in regards to online casino banking.
What are e-Wallets?
Digital or e-wallets are online storage programs where users can safely keep financial resources, be it cash or cryptocurrency. They act as bank accounts that allow users to make cash deposits, withdrawals, purchases, and yes, interact with online casino operators. Once an e-wallet is established, the user can make transactions without the need to share sensitive banking info with every transaction.
Such accounts are convenient and very secure due to the protection these programs are afforded by the latest Secure Socket Layer (SSL) technology and firewalls. More on this later.
Depending on the country in which you live, it’s likely you have access to dozens of viable e-wallet options. However, caution is warranted. Online casinos prefer to transact business with brand-name programs such as Neteller, PayPal, Skrill, and Payz (formerly known as ecoPayz). Be sure to consult with your online casino operator regarding which e-wallets they are willing to accept.
How They Work
Before you can create a transaction with your favorite iGaming site via an e-wallet, you will need to set up and fund your account. Funding can be accomplished as follows:
- Draw funds from a credit or debit card
- Send an online wire or bank transfer
- Use your cryptocurrency wallet
- e-wallet account to e-wallet account
- Via a deposit kiosk when available
- Payments made from outside sources
Once your e-wallet is sufficiently funded, you can go to the online casino site’s banking page, choose the appropriate option, and make your deposit with a couple of clicks of a button. If any personal information is required, it will be a one-time-only request. In most cases, deposits are credited immediately.
How Do Online Casino Operators Feel About e-Wallet Transactions
The evidence shows that online casino operators do support transacting business via e-wallets for several reasons. First, the transactions are always clean and fast. Second, the casinos know they are immediately getting good funds, which is why they are usually willing to give such users immediate credit on deposits. Finally, online casinos like giving customers what they want if they can to satisfy their desires.
The Pros and Cons of Using e-Wallets
It’s time to get down to the core of this article! Let’s take a look at the pros and cons from the customer’s perspective.
The Pros
1. Convenience and speed
Transactions done via e-wallet accounts are almost always immediate transactions on the deposit side. That’s a great benefit when a user is itching to get to the casino and start playing.
As far as convenience, access to e-wallet accounts is facilitated through mobile apps. There is no need for the user to pull out a card from a real wallet. Through the online casino’s banking section, all the user has to do is reference the appropriate account, enter the amount, and presto, the deposit transaction is done in a minute or less.
2. Security
Software developers in the iGaming space are well-aware that gamblers demand secure software resources. This is not lost on e-wallet mobile app software developers, who work diligently to make sure their apps are as secure as possible.
For customers, a high level of security is ensured at several levels. First, the software is protected by the latest SSL encryption technology and advanced firewall technology. Second, e-wallet apps typically require multiple levels of authentication before new users can start using their apps. Finally, users only have to provide personal information once. They have no exposure at the online casino level because online casinos only require that the e-wallet account be made available to them.
3. Gambling bankroll management
Responsible online gamblers love taking steps to protect themselves from falling victim to gambling addiction. They typically use e-wallets solely for their online gambling bankrolls, allowing them to have constant awareness related to their gambling activities. This helps them track their deposits, withdrawals, and profitability.
Note: Never wager more money than you can afford to lose. The money you put in your e-wallet for online casino gambling purposes should not exceed your discretionary income. That’s defined as the funds that remain after all of your bills have been paid and some savings have been set aside for the future.
The Cons
1. Extra fees
Most of the time, your favorite online casino operator is going to charge you a small transaction fee on deposits and withdrawals. Such fees will vary from one operator to the next.
In addition to what your casino will charge, you can expect your e-wallet provider to also hit you with a fee. It could be a flat fee or as much as 3% of the transaction amount. You must stay aware of this because it will eat away at your iGaming funds.
2. Potential limits on bonuses
Some online casinos are wary of e-wallet deposits, preferring to limit bonus exposure because of possible bonus abuse. If you are targeting a specific bonus program, check for bonus limitations related to these transactions before making such a deposit.
3. Longer pending period for e-wallet withdrawals
If you are an experienced online casino player, you know the drill when it comes to withdrawals. You will likely have to endure a “pending” period before the casino with release your requested amount.
As we stated earlier, many online casinos will simply choose not to allow e-wallet withdrawals. If a site does allow such withdrawals, it might add a few days to the standard pending period to allow for additional scrutiny. Why? The account verification process might not go smoothly, causing delays. To be clear, such delays could reach as long as an additional week. Given PayPal’s reputation, such scrutiny is often excluded for PayPal users.
Note: Even if you funded your iGaming account via an e-wallet, you should be able to request withdrawals by wire or paper check if e-wallet withdrawals are not allowed.
4. Jurisdictional restrictions
Don’t assume that all e-wallets are accepted in all jurisdictions. Online casinos have to follow laws. You can verify the viability of your e-wallet account by contacting the casino operator’s customer service department.