More Bad News from Neteller

[Billman]

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While I respect that you're a software tester, I've been involved in software architecture for 14 years. I designed the payment solutions platform for, what was then, the third largest eCommerce site in the world. I worked with, around, and on payment systems for over a decade and there are certain, non-negotiable truths about how money flows from party a to party b. You simply can't hope your way around those truths. That was why I was 1000% certain ACH would be cut off the moment I read the bill.

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Oh and by the way, the current situation with Neteller has absolutely nothing to do with UIGEA. All of this stuff could have just as easily happened this time last year. And yet I don't recall anybody, you included, calling it back then.

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That would be because you're choosing to narrowly read my statements so as to support your own views. Neteller has two problems:

1) Their founders were arrested for aiding in funding gaming sites.

2) The NACHA issued voluntary guidelines asking ACH networks to shut off transfers to and from companies known to be engaged in businesses covered by the UIGEA.

If the only problem Neteller had was their founders being arrested then they may have just left the US market. It's the fact that the ACH networks have completely crippled their business is what most impacts us as people who formerly used the service and can't get our money. Granted, for me it's a couple hundred bucks so I don't really care but for many, many others they've got serious amounts of cash tied up.

And BTW, I did predict that eventually Neteller would be crippled due to being denied the ability to transfer funds over the ACH networks. My prediction was spawned out of a response to people like ZeeJustin who claimed that it would be impossible to do. The part I was wrong about was that I thought the ACH networks would wait for the regs to be issued. Whether or not they had the ability and the means to do it was never a question in my mind.

[Billman]

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Agreed. The thing with Neteller is a complete debacle, obviously, but I have little doubt that Stars and FT would move heaven and earth to devise an easy way for Americans to move money around.

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But can they move the DOJ?

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The answer to that question is quite obviously "yes." Don't vacation in the US and don't route your flights through LAX.

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Actually the DOJ could widen their reach a bit if they position the crime as money laundering. While someone like the Isle of Man may not extradite a CEO for offering gaming they just might if the crime is aiding money laundering. Once their in the US, they can be charged with any other violations the DOJ can cook up.

[gone.flying]

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In checking the Neteller FAQ update this evening, I noticed this is also new:

Does this change affect non-US members?

Yes. NETELLER is currently unable to transact with USD bank accounts , regardless of the location of the member. Please contact us to learn more.

I certainly had not seen the statement in bold before. Devious that Neteller buried this little piece of information in this particular FAQ. It certainly sounds like Neteller has temporarily stopped conducting ALL business with US banks.

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Yes, just spent a long time on phone with CS - I'm UK based my NT account is in $ and my UK bank account is in £'s - just wanted to check as the wording on NT faq is somewhat ambiguous, and got me worried (again) - they confirmed that transfers for all Non-US customers with local currency bank accounts (regardless of what currency the NT account is in) are being processed as normal and in a timely fashion. There's nothing new here - NT just confirms that they are unable to transact with any US bank

[radiihead]

nm, my buddy tried to cashout today, did not work
sorry for bad info

[HeavilyArmed]

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I'd now say there's something like a 10%-15% chance that Stars/FT come up empty and US players are left with no particularly great way to fund their accounts or cash out.

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It's not enough to find a way to fund accounts. US players are dead unless it's very easy and well subscribed by the fish. Chance of that = 1%. Buh bye.

[jtflush29]

Other than Peer to Peer to we have any other options with Neteller since they are no longer doing EFT?

[coxquinn]

Can someone briefly explain why paper checks sent in the mail not longer work for US members?

[pokerpunchout]

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Can someone briefly explain why paper checks sent in the mail not longer work for US members?

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In brief terms Neteller does not have a way to get a check that will be able to be cashed by a bank in the US. All checks comming from Neteller will be flaged as such and voided by US banks.

Many offshore companies use other companies or banks to write checks from .. "shell" companies if you will. Neteller has no such companies in place, as it was never a problem in the past and 99% of their transactions were via EFT.

In the future they may set up a workaround for this, but as of now they do not have one.

[BettorsChat]

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Can someone briefly explain why paper checks sent in the mail not longer work for US members?

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In brief terms Neteller does not have a way to get a check that will be able to be cashed by a bank in the US. All checks comming from Neteller will be flaged as such and voided by US banks.

Many offshore companies use other companies or banks to write checks from .. "shell" companies if you will. Neteller has no such companies in place, as it was never a problem in the past and 99% of their transactions were via EFT.

In the future they may set up a workaround for this, but as of now they do not have one.

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Neteller checks in the past were not under the name Neteller they were under a LLC company name.

[dibbs]

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Can someone briefly explain why paper checks sent in the mail not longer work for US members?

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In brief terms Neteller does not have a way to get a check that will be able to be cashed by a bank in the US. All checks comming from Neteller will be flaged as such and voided by US banks.

Many offshore companies use other companies or banks to write checks from .. "shell" companies if you will. Neteller has no such companies in place, as it was never a problem in the past and 99% of their transactions were via EFT.

In the future they may set up a workaround for this, but as of now they do not have one.

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I was concerned about this before, was this said by someone at Neteller or just the assumption because it's what happened with EFTs? Just a day or two ago someone posted about talking to NT and they said a check was the way to go I think but I could be wrong.

EDIT: I don't know anything about these places, but what about Check Cashers? Aren't they basically like a private business that charges a vig? Would they not be able to cash it?