PayPal, one of the biggest International online payment system have come under fire as problem gamblers have a chance to spend £150,000 on a daily basis, as gambling addicts are able to avoid strict banking limits.
Monitoring Online Payment Providers
Legislators in the UK have voiced concerns over customers using this method of payment, they are urging the company to be more responsible in protecting gambling addicts from over spending and becoming bankrupt. The United Kingdom Gambling Commission (UKGC) are monitoring other online payment providers and reviewing credit card usage in gambling.
‘Extremely Concerned’
PayPal is a successful online payment system, which allows customers to transfer money to any email address. A customers PayPal account is either tethered to their bank account or credit card. If the funds are not available in their bank account to cover the purchase a PayPal debit card will be charged. With a lag in PayPals system, between a customers account being empty, they are then able to have credit on a PayPal debit card, often leading to excessive spending from a gambling addict. By the time the system ‘catches up’, it is often too late and the gambler could have spent far more money than they can afford.PayPal have reacted saying they are “ Extremely Concerned” to hear of their service being abused to fund “excessive online gambling”. They are said to be reviewing their controls and tightening rules regarding payments.Deputy Labour Leader Tom Watson said, “ Companies such as PayPal need to be more responsible in identifying problem behaviour and stopping gambling racking up huge debts through their service.”