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Some random thoughts with full disclosure that I'm not mining CSC right now, nor do I hold any, as the exchange volume isn't there yet.
- As and when CSC is marketed to existing online casino operations, the point needs to be hammered home repeatedly that transactions using crypto currencies carry zero reversal risk. The online gaming industry as a whole has horrific credit card chargeback rates as dishonest players make deposits, lose, then dispute the transaction with the card issuer. They're also a favorite target of credit card thieves. That fraud has to be paid for somewhere, most likely by an increase in the house edge, so accepting crypto currency as payment benefits both the house and honest players (assuming the casino passes on some / all of the fraud reduction savings).
- Because of the high chargeback rate, the vast majority of conventional credit card processors won't touch casino operations with the proverbial ten foot pole. The few who will process such transactions charge far higher rates as you would expect. The rate for a conventional cardholder present swiped transaction is around 1 - 1.5%, for a conventional cardholder not present (MOTO) transaction 2 - 2.5%, yet casinos are looking at rates that can be double or triple that. The transaction cost for crypto currencies is so low that it may as well be zero e.g. sending BTC currently costs 0.0001 BTC as a fee which is about 8 - 9 cents regardless of the transaction size. That's a massive cost savings.
- What is sorely needed before widespread adoption can take place is a means to quickly convert CSC to USD / EUR / etc without the need to convert to BTC first at a fluctuating exchange rate. No way you're going to sell existing operations on taking on two sets of exchange rate risk: CSC to BTC and then BTC to USD / EUR. It would be an accounting and logistics nightmare. CSC needs to follow the example of BTC (e.g. via CoinBase), WDC (beta - Scharmbeck), and EAC (rumored) in establishing a means to go directly from CSC to fiat. If this was an automated back-end process that was built in to a set of merchant processing tools then so much the better. What I envisage is a player depositing CSC via merchant tools, and those CSC are instantly converted to USD / EUR at the prevailing exchange rate then sent via ACH to the merchant's bank account once per day. CoinBase has such merchant tools available, and others like CoinPayments.net show promise for alternative cryptos.
Apologies if any of this has been discussed before in this long thread, my intention certainly isn't to be redundant
- As and when CSC is marketed to existing online casino operations, the point needs to be hammered home repeatedly that transactions using crypto currencies carry zero reversal risk. The online gaming industry as a whole has horrific credit card chargeback rates as dishonest players make deposits, lose, then dispute the transaction with the card issuer. They're also a favorite target of credit card thieves. That fraud has to be paid for somewhere, most likely by an increase in the house edge, so accepting crypto currency as payment benefits both the house and honest players (assuming the casino passes on some / all of the fraud reduction savings).
- Because of the high chargeback rate, the vast majority of conventional credit card processors won't touch casino operations with the proverbial ten foot pole. The few who will process such transactions charge far higher rates as you would expect. The rate for a conventional cardholder present swiped transaction is around 1 - 1.5%, for a conventional cardholder not present (MOTO) transaction 2 - 2.5%, yet casinos are looking at rates that can be double or triple that. The transaction cost for crypto currencies is so low that it may as well be zero e.g. sending BTC currently costs 0.0001 BTC as a fee which is about 8 - 9 cents regardless of the transaction size. That's a massive cost savings.
- What is sorely needed before widespread adoption can take place is a means to quickly convert CSC to USD / EUR / etc without the need to convert to BTC first at a fluctuating exchange rate. No way you're going to sell existing operations on taking on two sets of exchange rate risk: CSC to BTC and then BTC to USD / EUR. It would be an accounting and logistics nightmare. CSC needs to follow the example of BTC (e.g. via CoinBase), WDC (beta - Scharmbeck), and EAC (rumored) in establishing a means to go directly from CSC to fiat. If this was an automated back-end process that was built in to a set of merchant processing tools then so much the better. What I envisage is a player depositing CSC via merchant tools, and those CSC are instantly converted to USD / EUR at the prevailing exchange rate then sent via ACH to the merchant's bank account once per day. CoinBase has such merchant tools available, and others like CoinPayments.net show promise for alternative cryptos.
Apologies if any of this has been discussed before in this long thread, my intention certainly isn't to be redundant
+1
