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The real reason for Neteller payment delay
IMO, the lack of access to ACH is not the reason for Neteller delaying refunding US accounts. If Neteller cannot access the ACH system, then how can they service their non-US customers? Do you really think that the banks servicing Netellers' ACHs can tell the difference between an ACH to non-US customer and US customer. Remember ACHs are completed by computer. I do not believe that software to make this distinction could be put into place in so short a time period.
The real problem is a short term liquidity problem. IMO Neteller only keeps about 10% of its clients funds in cash accounts. The rest is invested in short term CDs and govt. bonds with an average maturity about 6 month. Now Neteller faces a "bank" run due to their decision to abandon the US market. If they had the cash on hand, then they could issue paper checks if the ACH system was not available. Now they are even stopping transfers from non-US to US customers. Clearly they have a liquidity problem. They will eventually repay their US customers, but IMO it will take 3-6 months on average. This situation negatively impacts the online gambling industry more than anything that the DOJ efforts. Neteller will never regain their market position. I predict that within one year, the DOJ campaign will fall to WTO pressure and US court losses. Maybe Neteller should have stayed in the US market, fought the DOJ and suffered the consequences which would not have been as bad for it as the present situation. |
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