Why Do Banks Win When You Use Your Credit Card at Online Casinos?

When it comes to credit cards, many banks prefer to restrict this method of transaction for gambling sites, Although it is possible to find casinos using credit cards on NonStopCasino and other similar resources, the occurrence of banks allowing this payment method for gambling sites is rare. Still, some banks make profits out of it. How? Let’s find out.

Why and How Banks Win When You Use Credit Cards at Online Casinos?

Casino operators often try to make as many payment options as possible, but most banks have policies that do not allow the use of credit cards in casinos. They do have the option to pay through various online modes of payment, including net banking, e-wallets, and even various popular cryptocurrencies such as Bitcoin and Ethereum.

Casinos also allow the use of various cards apart from credit cards, such as debit cards and rechargeable cards. In short, gambling sites allow all possible payment methods for making deposits but the credit card. Most probably, this is done to prevent gambling-related fraud. Also, many countries have banned the use of credit cards on gambling sites. Thus banks too restrict such transactions.

But, you might be surprised to know that banks would make a profit if they allowed credit card use on gambling sites. Thus, you could find some casinos that allow credit cards as a payment method for specific banks. These banks might make a significant win, and this is how.

Cash Advance

Firstly, the credits you use during a transaction on a gambling site, you get charged for a cash advance, whose fees are higher than usual cash withdrawals. The advance fee is about 3-5% of the withdrawal amount for different banks.


The APR or Annual Percentage Rate is the interest one needs to pay for a credit card’s cash advances at the end of the year. The AP rate is much higher for advances than for purchases.

No Grace Periods

There is no grace period for transactions made in gambling sites or even land-based casinos. Usually, credit card companies and banks offer a period before which no interest is charged on the amount. But for transactions related to casinos, banks will charge interest on the amount from the moment you make the transaction, which seems quite unfair.

Hidden Charges

These are some additional charges that not too many people think about and that are easy to miss when using a credit card. Usually, such hidden charges include:

  • Maintenance Charges. Although this cannot be entirely considered a hidden charge but is something you might forget about while making a purchase. It’s an annual fee you are bound to pay to your bank and the credit card company if you are a credit card holder.
  • Cash Advance Fee. You need to pay an extra fee to your bank every time you make a withdrawal using your credit card. For usual cash advances, like when you withdraw cash from an ATM, the Bank charges you about 2.5-3% of the advance fee. But, as mentioned earlier, the fee is raised up to 5% of the amount for transactions in casinos.
  • Over-Drafting. Whenever you go beyond the threshold of your credit card, you get charged interest. The Bank does not consider if you run out of limit due to late fee payment, purchase, or anything else. Addictive gamblers exceed their credit card limit and eventually decline their cards or pay hefty interest. This is why many people choose to block gambling options on smartphones.
  • Late-Fee. If you fail to repay the credit amount by the last date, a late fee is charged as interest.
  • Foreign Transaction Charges. If you are gambling in casinos, especially in sports, it is an obvious gamble on overseas online casinos. So, you have to pay an extra as a foreign transaction charge, whose rate varies for different banks. Companies and states.
  • GST. Apart from all these charges, credit card users are also charged a higher rate of GST on every gambling transaction they make.
  • Surcharges. This is not a win for the Bank but for the site operator. You might see sights promoting the availability of credit cards as their payment means and offering discounts on using credit cards as a payment method. Most states allow merchants to charge a fee beyond the transaction value. But it’s illegal in a few states.

Both credit card companies and banks seem to partner in looting their customers. Both charge heavy interest and could be cruel in case of late payment. Banks could sometimes raise the interest rate for a cash advance up to 30%.


Although many banks do not block credit cards for gambling, using this payment method comes with cons. It might seem non-problematic to use credits on gambling sites, but when you consider the higher interest rates, lack of grace period, a high APR, and all those hidden charges, it does seem to create a problem with your wallet. Nowadays, online casinos collaborate with credit card companies and banks and offer seemingly lucrative discounts on their site for using credit cards. It is advisable to not fall into the trap and think for yourself if you want to bear a list of additional costs to get some coupons and discounts on the site.