MasterCard promises to allow payouts from gambling wins
The international payment system has announced that in 2018, Russia will be added to the list of countries where gambling winnings payouts will be allowed. Currently in the MasterCard system, operations done under MCC code 7995 are prohibited on the territory of the Russian Federation.
The MasterCard press office explained to Betting Business Russia that in 2018 the payment system will add Russia to the list of countries where gaming payments to card accounts are allowed. “In 2018, Russia will be added to the list of countries where payment transfers for the payout of winnings is available. Note that in payment system terminology, this type of transaction is understood as the transfer of profits from gambling or the transfer of unused funds intended to make a bet. These transactions must be identified by MCC code 7995, and the use of any other MCC, including MCC MoneySend, is prohibited. In addition, the payment system rules forbid the use of so-called return transactions when transferring gambling winnings to MasterCard/Maestro cards,” said the report.
Oleg Stolbov, vice president of public relations at ChronoPay, is confident that this is good news for the legal Russian bookmaking market. “Russia’s absence from the list of countries in which code 7995 payments were allowed was one of the main reasons for the creation of gray schemes in the payment market, which in turn played into the hands of corruption and crime,” he said. According to Stolbov’s expertise, this MasterCard solution will help legalize the gambling market in Russia.
The second largest international payment system, Visa, the “Mir” national payment system, and other electronic money systems did not introduce such restrictions.
The MCC code is a four-digit activity-type code that is assigned to the trade and service enterprise when connected to a card and electronic payments. The code is used within the banking system to allow for industry specificity when conducting transactions.