The card industry is relatively strict, but not perfect, about what can go on credit cards; because of the high throughput, it relies on merchant category codes that define each business-type. You have probably noticed news in the press lately because Bitcoin is viewed as a speculative investment that card issuers do not want to hold as credit card risk, but here is an interesting ditty on a change in pari-mutuel betting, with horses, just in time for Kentucky Derby in May.
- The National Thoroughbred Racing Association (NTRA) announced Feb. 6 that JPMorgan Chase, the largest credit card issuer in the United States with more than 80 million active cardholder accounts, has begun approving credit card deposit transactions with S. licensed and regulated advance-deposit wagering companies.
It is all about the Merchant Category Codes (MCC) which bucketize payment transactions, define acceptability, and impute interchange.
- The NTRA said the decision by Chase to accept cardholders’ account-funding transactions with ADWs approved to use the industry’s “7802” merchant category code is expected to have a significant and positive impact on overall U.S. pari-mutuel handle, particularly advance-deposit wagering, which already is the fastest growing segment of the U.S. pari-mutuel wagering market.
Right now, Chase is in front of this issue by a nose…
Overview by Brian Riley, Director, Credit Advisory Service at Mercator Advisory Group
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