Neteller is a global E-wallet service, regulated under the United Kingdom’s Financial Services Authority (FSA). Being part of the FSA, Neteller is obligated to keep and maintain customer funds in separate accounts away from money used for operation of the company. By doing so, Neteller can pay all customer balances at the same time if necessary.
Neteller is primarily used for online gambling and trading, but can also be used to shop online. Having an estimated 10 million customer base, 20 different currencies available and over 5,000 different merchants, Neteller is among the biggest E-wallet services in the world. Neteller also allows customers to apply for Neteller’s own Pre-paid Mastercard called Net+ Card. The Net+ Card can be used in ATM’s and stores all over the world and is a great addition to their E-wallet service.
Neteller was founded in 1999 by Optimal Payments Limited. The goal of the company was to provide the world with an online alternative to traditional payment methods. Originally based out of Canada, Neteller moved their headquarters to the Isle of Man in 2004. With the move to Isle of Man, Neteller registered as an “Authorized Electronic Money Institution” under the FSA regulations. . Neteller has always had its main focus on gambling sites, with 95% of their revenue coming from transactions to and from gambling merchants.
Neteller started to process real money transactions in July 2000 and by 2005, Neteller was accepted by 80% of the world’s gambling merchants. Neteller accepted customers from all over the world, including Americans. Americans loved Neteller and used it as their main payment method for online gambling up until 2006.
In 2006 the American Congress passed the Unlawful Internet Gambling Enforcement Act (UIGEA), which made it illegal for gambling sites to accept deposits from American players. With the pass of the UIGEA bill, Neteller were no longer allowed to process deposit and withdrawals for American players and were charged with illegal money transferring by the Department of Justice (DOJ)
In 2007 Neteller an agreement with the DOJ, paying them a total of $136 million and agreeing to repay American customers balances in full before January 17th 2008. Neteller also agreed to admit having done unlicensed money transactions in America, with the purpose of promoting internet gambling companies. Neteller paid the $136 million in January of 2008 and all charges were lifted.
With the loss of American customers as well as other regulated markets such as Canada, Hong Kong, Israel and Macau, Neteller’s yearly revenue went from $239 million in 2006 to $44 million in 2010.
Today Neteller is the most used alternative to Skrill, offering the same services such as Pre-paid Mastercard, cash-back promotions, dedicated VIP manager and much more.
Neteller is one of the most accepted online payment methods, due to their focus on gambling merchants. Even though Neteller no longer accept American customers, many US friendly casino’s such as Slots Jungle, still accept the payment method. The biggest online casino software development companies such as Amaya, Netent, Playtech and Microgaming all accept Neteller as a deposit and withdrawal option as well.
Neteller is the perfect E-wallet for players who want to have good security, multiple currency options, great support and fast cash outs to bank. To start using Neteller, all you have to do is create your account and upload money to the account. The account can be funded in more than 30 different ways, making Neteller the E-wallet with most deposit methods of all. Once the account has been funded, you can keep track of your online gambling money, without having any transactions on your personal banking account.
Neteller provides instant deposits and fast cash outs from all its merchants and is seen as one of the best payment methods to use for online gambling.
US Friendly Casinos and Neteller
Neteller is no longer available for American players, but many American friendly online casinos still have Neteller as a payment option. Many of the American friendly casino sites continued to have Neteller as a payment option after the UIGEA bill of 2006, using it for European traffic instead.
With the recent legislation in Las Vegas and the talk of more states to legalize gambling, Neteller might have a chance to get back into the American market and claim the market share they lost in 2006. Neteller is still one of the leading online payment methods despite the loss of American customers and is seen as a safe and reliable E-wallet.