I know that we can rely on visa for credit card blocking and monitoring for our credit cards under teh UIGEA rules but how does this work for debit cards? Is it a card network like visa or mastercard?

Can someone help clarify - I wish there was more guidance.

Contact your card processor (i.e. First Data, NYCE, Maestro, etc.). They should be able to put a block on your cards for Merchant SIC code 7995 which is used for online gambling services.

Keep in mind that the UIGEA regulations focus on blocking deposits from illegal Internet gambling to commercial, not consumer, accounts. Any decision your bank makes to block a consumer's use of a debit card for placing bets is not attributable to UIGEA compliance.

Moreover, you will have a difficult time finding any explicit requirement to monitor even a commercial customer's activity. It may be what some proponents wanted and it may be what some examiners think is implied, but it is not written into the law. Generally, UIEGA is about due diligence in getting commercial customers to indicate they are not accepting deposits of illegal Internet gambling proceeds. It is also about required policies and procedures for what to do if you find illegal Internet gambling, not about how you look for it.

Reg GG states that you should get a copy of your card servicers policies and procedures on how they are going to monitor/block consumer transactions under UIGEA but what happens if our card servicer will not provide us with their policies and procedures.

The reg says that we "may" rely on our card servicers policies and procedures but if they won't provide them to us then what?

Any guidance that can be provided is greatly appreciated.

Then you have to make your best effort to devise a policy and procedures that will keep your bank compliant. The acquiring side is straightforward, if not easy -- customer due diligence to mitigate the risk of opening an account for a business that engages in Internet gambling, and ongoing monitoring designed to identify suspect transactions or actions.

The issuing side is perhaps more difficult. You can really only key on the transaction approval request and the code included that describes the merchant type. I'm reasonably sure you won't ever see a merchant code that means "illegal Internet gambling." But your best effort may have to be denying transactions from casinos or gambling businesses, particularly those outside US territorial jurisdiction.

That's a start.

Regulation GG does not say you need a copy of the card system's policies and procedures. What it says is:

(c) For purposes of paragraph (b)(2) in this section, a participant in a designated payment system may rely on a written statement or notice by the operator of that designated payment system to its participants that states that the operator has designed or structured the system’s policies and procedures for identifying and blocking or otherwise preventing or prohibiting restricted transactions to comply with the requirements of this part...

All they have to do is tell you in writing that they have a compliance program. They are not required to disclose exactly how it works; you are not required to evaluate whether it works.

I would have sworn that I read a post here where someone said they had already received the statement from their relevant card system, but I simply cannot find the post.

I think that may have been my post. I found something that I think (hope?)will suffice for Visa. In their April 22nd 2009 Visa Business News under Risk Management there is an article that summarizes their Operating Regulations and programs regarding Internet Gambling. That's the only statement that I've found so far, so I'm keeping a printed copy in our Bankcard Dept.

You also may want to contact your card proceesors. I contacted both our Debit and Credit Bankcard processors and discovered that they automatically enrolled us into Visa's Internet Gambling Stand-in Processing service. It's an optional serivce that enables issuers to decline all identifiable gambling transactions done on a Visa card.

I hope this helps.

Got this bulleting from First Data and I've got no clue what it means. Looks like they want us to sign-up (and probably pay) for additional blocking. Anyone get something similar? I don't know if what they are telling me sufficient. I already have a policy and procedures in place for account opening of new commercial customers and procedures for responding to becoming aware of unlawful internet gambling on existing commercial accounts (and I've disclosed to my current clients and put something in my terms and conditions for new clients). The only piece left is the card servicer/merchant piece. I've been waiting for them to provide something and I get this. What is the red part telling me (I changed it to red)? Sort of sounds like they will block some transactions but not all. If I want specific or all trans blocked I have to do #1 or #2. It doesn't really define what, if anthing they will block. Help!

Subject: Federal Regulation GG (Unlawful Internet Gambling Enforcement Act – UIGEA)

Customers Affected
This bulletin contains information for processors and members in the Instant Cash Network.

Executive Summary
Under the authority of the Federal Reserve System and the Department of the Treasury, Regulation GG, which implements the Unlawful Internet Gambling Enforcement Act of 2006 (UIGEA), took effect in January 2009 with required compliance by December 1, 2009, for non-exempt participants in designated payment systems.

Background
Regulation GG seeks to curtail unlawful Internet gambling transactions (“restricted transactions”) by requiring the establishment of policies and procedures to identify and block or otherwise prevent or prohibit restricted transactions. Clients should ensure that they are familiar with the specific requirements of the regulation and its application to their business.

Instant Cash Network Approach
The Instant Cash Network does not unilaterally monitor and/or block certain types of transactions. Therefore, the network will not be implementing a universal safe harbor provision for blocking restricted transactions. First Data/Instant Cash offers two optional transaction blocking services for clients.
1. Restricted transactions can be blocked at the switch. Blocking could be implemented for all transactions that contain a gambling-related Merchant Category Code (MCC) and e-commerce indicator to assist clients with their compliance efforts.
2. Restricted transactions can be blocked utilizing the Auth Blocking tool. Issuers can write an authorization strategy that will decline keyed gambling transactions.
Client Responsibility[/color]Instant Cash Rules prohibit Acquirer Members and entities they sponsor from engaging in restricted transactions and require all entities of the network to ensure that they are in compliance with all applicable laws. Clients are expected to familiarize themselves with Regulation GG and conduct due diligence for compliance. Please consult with your legal counsel for guidance on how Regulation GG affects your organization.

Clients wanting to optionally participate in a transaction blocking service should contact their Relationship Manager and processors wanting this service should contact their Processor Relations Representative.

For Additional Information
If you have any questions regarding this communication, please contact Member Services at 800.641

I looked at our contract with the company that issues/processes our merchant cards. They state that they will not sign up a merchant account if the merchant is involved in any "prohibited" business. A prohibited business is anything from Adult Entertainment to Fortune Tellers to Internet Gambling. So I think we are covered because those commercial customers would have been denied card services at the get go. Am I off base in that assumption?

Does this mean we can use the November 4, 2009 VISA Business News to support our reliance on VISA's policies and procedures and not actually get anything from VISA?

If someone would copy what Visa said in its VISA Business News article into a PM to me, I'd be happy to offer an opinion. My gut reaction is that you should print a hard copy and hold onto it as your documentation, and refer to it in your statement of your policy.

If the article is all I had then it is definitely what I would use...

John, the Visa Business News on UIGEA is 5 pages long. I'm not sure you want all that in a PM. I do have it saved in a PDF, so I could email it to if you want.

Has anyone received UIGEA information from MasterCard?

I need MC, also.

Could you explain the following statement: "Any decision your bank makes to block a consumer's use of a debit card for placing bets is not attibutable to UIGEA compliance." In the regulation's example of policies and procedures for card systems, the regulation states that policies can provide for either methods of conducting due diligence (Section 132.6(d)(1)(i)) or implementation of a code system (Section 132.6(d)(1)(ii)). If you chose the due diligence route (132.6(d)(1)(ii)), then the necessary due diligence is limited to commercial customers. If you chose the code system blocking route (132.6(d)(2)(ii), there is no language that indicates only restricted transactions initiated by commercial customers need to be blocked. I understand that the spirit of the regulations is aimed at the payments flowing into a illegal gambling business, but the actual language supports blocking all unlawful internet gambling transactions regardless if initiated by a consumer or commercial entity. It also seems that if the regulation did not intend to block transactions initiated by a consumer, they could have required a block only on the merchant acquirer side of the equation.

Does anyone have the VISA business news article?

If you provide your email address I can send a copy of it to you.

John - did you receive a copy of the Visa Business letter regarding Reg. GG?

do i all of a sudden start getting tons of spam if i put my email address in here? i thought i just read something on here about that....

Send a private message to the person who offered the Visa article and include your bank e-mail address in the private message. Do not post your e-mail in the threads.

To send a private message, put your mouse on the name of the poster you want to contact and right click the poster's name and then select send PM (private message).

Make that a Left Click, Reads. JoAnne, I sent you a PM.

I don't understand the obsession with blocking. Even if you block debit and credit transactions for internet gambling, you still need to have the due diligence process set to to cover yourself for check systems, ACH and wires. And once you have the due diligence process, you don't need the blocking.

i agree Bob....to me, you're just going to have a bunch of angry consumers if you start blocking those transactions, and from what i've read, there is no requirement to block those "consumer" transactions.....

i think the "unlawful" part is getting lost in all this. This regulation doesn't create a new class of "unlawful" gambling transactions.....if it was legal yesterday for your customer to get on a gambling website, it will still be legal tomorrow or December 1st