Best Payment Methods For Online Betting - Pros & Cons (2022)

Discover the best payment methods for online betting together with their pros and cons. Learn how to deposit and withdraw money fast and efficiently.

Best Payment Methods For Online Betting

Online betting is becoming more popular with every passing year. One of the primary reasons for this growth is because it’s convenient. In fact, 95% of online betting is done from home. However, there is one more thing that also makes it attractive. Funding the bets and collecting wins is effortless, and some companies even offer smartphone betting apps.

One question still remains, though — which payment method is best to use for online betting? Why is this relevant? Because it’s not the same if you use, let’s say, a credit card, direct bank transfer, a mobile payment, or eWallet. Using any of these options comes with unique upsides and downsides.

To help you to make the right choice for you, we’ve done some thorough research. Below, you can find the pros and cons of every popular payment method available for online betting.

Payment gateways (methods) explained

The best way to understand online payment gateways is to see a bet as a product that you wish to purchase online. In this case, the payment gateway definition is straightforward:

Payment gateway refers to a technology able to capture and transfer payment data from customer to the acquirer.

To make things even clearer, we need to shine some light on the concept of “acquirer”. It’s a bank that processes all payments made on an online betting website or platform. A payment gateway is an intermediary between an online betting website and the bank that maintains its account.

The payment gateways play several very important roles:

  • Capture your payment data;
  • Validate your payment data;
  • Ensure the funds are available; and
  • Enable payments to online betting companies.

To ensure that every bit of information is communicated securely, payment gateways use encryption. Every payment method passes a different dataset. A payment method is simply a way that you can make a payment on an online betting website. Choosing the right payment method can make a huge difference for you.

Why is choosing the right payment method so important? 

Every payment method is unique. There are too many factors at play to completely explain their importance in only a few paragraphs. However, briefly, below are some reasons why choosing the right payment method for you is so important. 

Level of security

You are working way too hard to take chances when it comes to your money. One of the most important financial things to consider is security. Some payment methods are more secure than others. You should stay vigilant when disclosing your payment information online. The fewer companies that have access to your payment information, the better.

You can also consult privacy policies on online betting sites to ensure that they don’t store your payment information.

Processing fees 

Making payments online comes at a cost. Whether you are shopping on eCommerce sites or if you want to swipe your card on an online betting site, you have to factor in the cost of doing business, otherwise known as processing fees.

Some payment methods are more budget-friendly than others when it comes to processing fees. If you place bets frequently, processing fees can pile up. For this reason,  some people prefer payment methods with minimal processing fees. 

Support for multiple currencies 

Payment methods also differ in terms of supported currencies. Why is this relevant? It all depends on which country you live in and which betting sites you prefer to visit regularly. Some sites will have support for multiple currencies, while others will not.

If you want to use your favourite payment method on a site that doesn’t support your default currency, you will have to pay a conversion fee. It’s not something that should worry you if you do this rarely. However, if you do this regularly, conversion fees can add up to a significant sum. 

Customer support quality

Even proven solutions are known to fail occasionally. Chances are that you will encounter some problems with your payments at some point. Perhaps a payment won’t be able to go through, you’ll be charged for no reason, or you’ll encounter another problem. In these cases, customer support can make a huge difference.

With a customer support centre that works 24/7/365 and offers quality service, you won’t have to worry. Your issues will be resolved promptly, and you will be able to continue to place online bets like a pro. Usually, you can access it via a mobile app to fund your account.

Processing speed 

Processing speed is another key factor to consider. Every payment method comes with a unique processing speed. Imagine wanting to place a bet on a sports event that has a specific cut-off time only to find out that you can’t fund your online betting account instantly. Some types of bets on sports need to be made in advance, while others can be done even if the game has started.

You can choose a payment method that offers speedy processing times or just learn how long it takes for your favourite payment method to go through so that you can plan in advance. 

Upper limits 

You risk frustration if you use a payment method that has unfavourable upper limits unless you want to use this restriction intentionally to keep your habit in check. Upper limits differ from payment method to payment method. They can also be unique in different countries.

The best way to ensure that upper limits won’t hold you back is to research payment methods in your country and choose the one that offers the lowest or the highest limit, depending on what you want.

Dashboards and reporting tools 

Dashboards and reporting tools are not a game-changer per se. Still, some people like to have insight into their spending habits, gains, and financial performance overall. If you are one of these people, you need to look for very specific features in a payment method and its provider.

Look for a dashboard and reporting tools in a mobile bank app or online account.  

Mobile payment options 

Finally, not all payment methods can be used via your smartphone. Mobile payments are fast and convenient, but they are simply not supported by some banks and online payment systems. 

Being able to make payments with a smartphone is quite handy when you browse sports betting bonuses on promotions while on the go. 

Here’s an example of betting bonuses from 10Bet bookmaker:

10Bet betting bonuses

If you prefer making mobile payments and want to do this on online betting sites too, make sure to look for a payment method with a mobile payment option. 

An example of mobile betting apps provided by MansionBet:

mansionbet mobile betting apps

Online betting payment method types

In case you are wondering, you have five options when it comes to funding your accounts on online betting sites. Each one of them works differently and comes with its own pros and cons. 

Credit and debit cards 

As you probably already know, credit and debit cards are issued by banks. People are very familiar with them as they have been in use for over 50 years. More importantly, online betting sites trust them too, making them the most widely accepted payment method in the world of online betting.

Both credit and debit cards work in the same way. The bank has to get authorization from the card network to process the card transaction. Your card issuer must verify your information before the transaction is approved. Credit and debit cards are excellent if you want to have access to cashback and cash out.

Here are cashout options at Betition bookmaker:

betition cashout options

The only difference between credit and debit cards is that debit cards are not debt instruments while credit cards are.

Pros

  • You can’t deposit more than your limit allows;
  • Access to cashback;
  • Increased security; and
  • Withdrawals take approximately 48 hours.

Cons

  • If you use a credit card you need to pay the balance every month;
  • Risk of paying additional fees; and
  • Can’t be used to withdraw winnings in some countries.

Top Options

While every credit/debit card issuer is different, the vast majority of them don’t impose any restrictions on credit card holders when it comes to funding sportsbook accounts. Major online betting websites accept cards from major financial service corporations, including: 

  • VISA - most widely accepted and commonly offered as a withdrawal method;
  • MasterCard; and
  • American Express.

Direct bank transfers

You can also fund your online sportsbook account with a direct bank transfer. Direct bank transfers are really easy to understand. You transfer cash from your bank account to an online betting website’s bank account, and it shows as a balance on your sportsbook account.

While they are easy to understand, direct bank transfers might not be as fast or as cheap as you would expect. It all depends on whether you use the same bank as an online betting website or not, and whether your site's banks are part of the Faster Payment Service. 

Pros

  • Increased safety — money goes from one bank to another;
  • Minimal service charges for transactions in the same country;
  • Convenience — you can initiate a transfer via your bank’s mobile app; and
  • Instant deposits and withdrawals if you use the same bank as your sportsbook.

Cons

  • High service charges for direct bank transfers from and to foreign countries;
  • Deposits and withdrawals take longer if you don’t share a bank with sportsbook; and
  • Deposits take up to 3 days if the banks are not members of the Faster Payment Service.

Top Options

A bank will often only process transactions to online gambling sites operated by a specific corporation in a specific country. You need to research the best bank for the online sportsbook that you prefer to use. Here are top options in some countries:

  • Canada — Bank of Nova Scotia;
  • UK — Bank of Scotland; and
  • USA — JPMorgan Chase.

Cryptocurrency options 

Online betting sites have developed hand in hand with cutting-edge technologies. Today, most online sportsbooks accept cryptocurrency. You can also use your cryptocurrency tokens to fund your account and withdraw crypto tokens, as well. To do this, you do need a cryptocurrency wallet. 

The wallet works the same way as a bank account, and you can use it to fund your sportsbook account or to withdraw cash from it. There are some unique pros and cons regarding using crypto to fuel your online betting adventures.

Pros

  • High-degree of privacy;
  • Increased security;
  • Fast transactions; and
  • Easily withdraw in crypto.

Cons

  • The fluctuating price of cryptocurrencies; and
  • No oversight by public institutions.

Top Options

Top online betting sites follow the current trends. After the 2017 cryptocurrency craze, these sites started providing more and more options to people interested in paying for bets by using cryptocurrency tokens. Based on blockchain technology, cryptocurrency tokens provide an additional level of online safety and anonymity. 

Here are the most commonly supported crypto tokens: 

  • Bitcoin;
  • Ripple;
  • Ethereum;
  • Litecoin;
  • Dash; and
  • Monero.

Mobile payments 

Mobile payments are continuing to make the lives of people all around the globe much more convenient. Most online bettors now accept mobile payments. Mobile payments are perhaps the easiest way to fund your sportsbook account. The best thing about it is that you can fund your online sportsbook account on the go. 

Here is how it works. First, you need to find an online betting site that accepts mobile payments. Once you log into your account, you must navigate to the payment page and select mobile payment, select the preferred mobile payment method, type the amount that you want to deposit, and you are done!

Pros

  • You don’t disclose your payment information;
  • You can do it wherever you are;
  • The process is extremely fast; and
  • You can get access to reward programs.

Cons

  • If your phone battery dies or you lose your phone, you can’t make payments;
  • Payments can be easily tracked, which can be a privacy concern to some people; and
  • Transaction processing varies from provider to provider.

Top Options

Finding a mobile payment service provider for betting websites is not that hard. Your online search will probably return dozens of them. However, not all online betting sites necessarily work with all of these companies. Most often, you will find the following reputable mobile payment services supported on sportsbook sites:

  • PayPal;
  • Bokul; and
  • Google Pay.

eWallets 

Finally, there are eWallets as the final type of online betting payment method to consider. People consider them extremely easy to use. They are fast and safe as well. An eWallet acts as a bank account that you register with an online payment provider. You fund your eWallet with a preferred payment method and then use it to make payments without entering your bank or credit card details. 

Some online payment providers even enable clients to keep their bank accounts connected to their eWallets. This enables users to make payments even if their eWallet doesn’t have sufficient funds. Here are the noteworthy pros and cons of using eWallets for funding online sportsbook accounts.

Pros

  • Multi-layered security (encryption, password, proxy, QR Code);
  • Lowers the risk of theft;
  • Extremely easy to use; and
  • Cheaper than traditional banking.

Cons

  • They are device-dependent; and
  • Some casinos don’t support e-wallets.

Top Options

eWallets are extremely easy to fund and use. The increasing popularity of online shopping and digital goods contribute to a higher number of eWallets emerging into the market year after year. When it comes to eWallets and online betting sites, you will find the following top options:

  • Neteller;
  • Trustly;
  • Skrill;
  • PayPal;
  • Boku; and
  • Paysafe.

Conclusion 

We can’t tell you which payment method to use for online betting. However, what we can do is list all viable payment methods, their pros and cons, and the top options. With all of this information, you can make the right decision for yourself. 

The right decision is a personal matter, and it should be in line with your personal needs, preferences, and budget.