Bank Transfer vs E-wallet in Online Gambling: Speed and Security Compared
Dean McHugh
Online betting has quickly become more popular than traditional gambling, and for good reasons. This is because of the convenience, comfort, speed, and player experiences that it offers to bettors. With this advancement, online casino gambling has seen a massive revolution with the advent of financial payment methods such as e-wallets.
Recently, electronic wallets, or e-wallets, have gained a lot of attraction from online casino gamblers. This payment method has come in to replace bank transfers, a traditional payment method for most online transactions.
But which payment method is better for online gaming: bank transfer or e-wallet? This guide will cover everything you need to know about bank transfers and e-wallets in online casinos gaming.
We will compare and contrast the two payment methods in terms of speed, security, transaction fees, convenience, regulations and user experience. We will also check which of those payment methods gives you access to online casino promotions.
Bank Transfer
Bank transfer is the oldest payment method available for online casinos. In this day and age, everyone has made a bank transfer at one point.
This method entails directly transferring funds from your bank account to your online casino account. One of the reasons for its wide adoption in online casino gaming is that it is quite trustworthy, which makes players feel secure.
How A Bank Transfer Works in an Online Casino
You need to have a functional bank account in order to make online casino payments. For you to use this method in a casino casino, all you have to do is select the bank transfer option when depositing funds.
After selecting the payment method, you will then fill in your bank account details, choose the amount, enter the reference code, and then proceed to authorise the transaction for the money to be transferred to your online casino account.
There are different ways to confirm and approve online transactions. One way, definitely a newer type, is using things like fingerprints or face scans, which are unique to you. Another method is by using two-factor authentication, where you need both a password and a code sent to your phone. Some banks provide special tokens or code cards that give temporary access. These methods help keep your transactions safe from unauthorised access.
For withdrawals, the process is also quite straightforward. You will request a withdrawal from your e-casino account, and then the money will be transferred to your bank account. If it is your first time trying to withdraw your winnings you might need to go through a verification process to ensure the security of your transaction. This typically involves providing some identification documents, such as a copy of your ID or a utility bill, to confirm your identity and address.
To learn more about the withdrawal process at online casinos, including tips for smooth withdrawals and common pitfalls to avoid, head over to our blog post on the topic.
E-wallet
An e-wallet is a payment method that allows online casino players to store, manage, and transfer money to and from an online casino account. Also known as digital wallets, this method is widely used in online casino betting due to its ease, convenience, and security.
How an E-wallet Works in an Online Casino
To use an e-wallet in an online casino, you first need to create an account on with an e-wallet provider. Some of the most popular digital wallet service providers include PayPal, Skrill, Wise, and Neteller. You will be required to provide personal information such as name, date of birth and other necessary details. However, note that the application process is relatively straightforward.
Once you have an electronic wallet, you will then fund it from a bank account or a credit card. After loading your wallet, all you need to do is log into your online casino account, select e-wallet as your payment method and then transfer funds to your online casino account.
The withdrawal process is a reversal of the depositing process. You will just request a withdrawal of your winnings from your online casino account into your electronic wallet and the money will be transferred.
Bank Transfer vs E-wallet Payment Methods for Online Casinos
Bank transfer and e-wallet payment methods for online casinos vary in different aspects, such as transaction speeds, security, transaction fees, accessibility and convenience, regulations, availability of promos and user experience. In this section, we will compare and contrast bank transfers and digital wallets in terms of these aspects.
Transaction Speeds
Speed is a vital factor in the fast-paced digital world. This extends to bank transfer and e-wallet payment methods, especially for online casinos. These payment methods compare differently; let’s see how!
The Speed of Digital Wallet
In terms of speed, e-wallets offer reasonably fast transactions. Online gamblers have been struggling with transaction speeds, but digital wallets seem to have brought relief.
In online casinos, the payments are usually processed within a few seconds and reflect on the online casino account almost instantly. What this means is that you get to complete your transaction fast and even proceed to bet with no significant delays.
However, digital wallet transaction speeds in online casinos may vary based on various factors. These include transaction volumes, stability of the recipient’s internet connection and verification steps that an e-wallet transaction may require. These elements may cause delays in some instances, but they are not significant.
The Speed of Bank Transfers
Bank transfers are relatively slower than digital wallet transfers. These transfers take different times to complete, with the fastest ones taking up to a few minutes. However, they can take up to 24 hours to reflect on your online casino account. Some bank transfers to online casinos may take up to three days.
When it comes to online bank transfers, the speed of transactions is affected by various factors, such as the day of the week. A bank transfer on a weekday will most likely be completed faster than those performed over the weekend or on public holidays.
Nonetheless, internet banking transfers to online casinos are affected by other factors such as the bank you are using (some internet banking platforms offer faster transactions compared to others), your internet connection and the verification processes involved.
Security
As online casinos continue to adopt various payment methods, security is paramount for every gambler. That said, digital wallets and bank transfers to online casinos have different security measures. The two compare as follows:
Security of Digital Wallets for Online Casinos
When it comes to security, digital wallets are fully enhanced with security features to promote ultimately secure transactions for players. This payment method offers multilayer protection, with the first layer of security being tokenisation. Tokenisation is an encryption method that encodes your e-wallet details so that they are never shared with the online casino.
Additional security layers include authentication and authorisation when making transactions. Digital wallets require you to use biometric data such as fingerprints or facial recognition when making a deposit to an online casino. This security measure helps confirm that you are the one making the transaction and not somebody else.
Another additional feature is the isolation of the digital wallet on your phone. Most e-wallet providers ensure that their mobile app only interacts with a few other apps on your phone, thus minimising malware that could infiltrate your wallet and steal your data.
Security of Bank Transfer in Online Casinos
Net banking has been an important payment method for online casino players. This form of payment not only allows convenience but also supports secure transactions.
Some security measures for online casino bank transfers include using encryption protocols such as SSL and TLS. These encryption methods hide your bank details to make them unreadable when making transactions, thus keeping them safe.
Additionally, online casinos that allow bank transfers through internet banking are required to have stringent security measures on their platform. The measures include strict adherence to payment security standards such as PCI DSS.
Online casinos are also required to have firewalls and secure payment gateways, which further prevent unauthorised access to users’ bank details when making transactions on the platform.
Transaction Fees
Online casinos have different transaction fees for both deposits and withdrawals depending on the casino itself, payment method and player’s location. They also have different transaction fees for bank transfers and e-wallets, so you need to review the casino’s terms and conditions before making payments.
E-wallet Transaction Fees
Most digital wallets do not charge sign-up fees. However, E-wallets charge various transaction fees, including deposit fees, withdrawal fees, and currency conversion fees.
The service fees charged for deposits vary depending on the payment method chosen. For large e-wallet service providers, the rate charged on deposit fees is usually the same. For example, 1% for every transaction. However, small e-wallet providers charge varying rates based on the volume of the transaction.
Normally, withdrawal fees are charged using the same model as deposit fees, where large e-wallets charge a fixed rate and small providers charge a varying rate based on transaction amounts.
In terms of conversion fees and exchange rate fees, the rate is charged based on the standard terms, which may vary based on the service provider.
Bank Transfer Fees
Just like e-wallet fees, bank transfer fees vary depending on various factors, such as the casino and the bank being used. Different casinos have different rates for deposits and withdrawals. It is the same for banks; different banks have different service fees.
For most online banking platforms, fees for sending money to your online casino account are usually based on the size of the transaction. Substantial amounts attract a greater fee, while smaller amounts attract lower fees.
The bank does not charge fees for withdrawals into a bank account. However, the casino might charge a withdrawal fee based on preset rates. In terms of transaction fees, bank transfers are more convenient as less fees are charged compared to e-wallets.
Accessibility and Convenience
Online gamblers are highly concerned with the accessibility and convenience of online casino payment methods. While most of the payment methods offer convenience and comfort, they all have some slight differences.
Accessibility and Convenience for Digital Wallets
Most e-wallet service providers offer round-the-clock access to your e-wallet. This means you can make e-wallet transactions to and from online casinos at any time. The only time you might not be able to transact is in case of service disruptions such as scheduled maintenance, in which case providers inform users prior to the disruption.
On the other hand, digital wallets offer faster transaction speeds, which are almost instantaneous thus, you can deposit and bet without delays. The e-wallet payment method for online casinos is also quite convenient and offers you a simple way to deposit and withdraw.
Accessibility and Convenience for Bank Transfers
While bank transfers are not as instantaneous as e-wallet transfers, some are fast enough to offer the convenience you want in your online gaming.
The fact that you can make payments to online casinos from anywhere at any time of the day using your mobile phone or laptop makes internet banking a relatively reliable payment method. However, some transfers may take longer and service might be slow during the weekends and bank holidays. It basically depends on the bank you are associated with.
Regulations for Payment Methods
The online gambling industry is highly regulated by authorities. The regulatory bodies ensure maximum security for online gambling platforms and facilitate avenues for monitoring and ensuring strict compliance. E-wallets and bank transfers are regulated as follows:
E-wallet Regulations
Most e-wallet platforms like PayPal, Neteller and Skrill are usually regulated by financial bodies from the country of origin. Some of the regulations set by these bodies include compliance with anti-fraud measures, FCA regulations, and encryption technologies.
Further regulations on e-wallets as an online casino payment method limit the amount you can deposit into your online casino account. This limit sets up a maximum threshold in order to limit wagering amounts.
Bank Transfer Regulations
The online gambling industry faces stringent regulations when it comes to bank transfers. These laws come in handy to prevent money laundering, which could occur in online casinos if they are not strictly regulated.
Most online casinos ensure that their platforms comply with jurisdictional regulations and laws to ensure seamless internet banking. Internet banking service providers partner with compliance payment processors to operate under a legal framework for online casino payments in order to avoid potential penalties.
Eligibility for Online Casino Promotions
When it comes to promotions, online casinos give promos based on payment methods used. This simply means that a bank transfer attracts certain promos while an e-wallet transfer attracts different promos.
Online Casino Promotions for E-wallet Deposits
While some online casino gamers like the e-wallet payment method for its security, and convenience, they might not be able to enjoy promos and bonuses. This is because regulatory standards limit online casinos from offering bonuses and promos. You will often find that casino bonuses such as matched deposit bonuses are exempt when making a deposit via e-wallets like Skrill or Neteller. You will not have these issues when making a deposit via bank transfer or debit card.
Nonetheless, some online casinos with less strict jurisdictional regulations offer promos and bonuses for e-wallet deposits, but they are very limited.
Online Casino Promotions for Deposits Made With Bank Transfer
Some online casinos offer bonuses and promos when you deposit using the bank transfer method. Some of the enticing promos and bonuses offered for bank transfers in online casinos include first deposit bonus offers, free spins promos, cashback bonuses, reload bonus funds, in-game bonus spins, and loyalty programs.
User Experience
User experience is a vital aspect for online casino players as they aim to have experiences even better than those for in-person gaming. Bank transfer and e-wallet payment methods offer different user experiences.
E-wallet User Experience
When it comes to user experience, online casino bettors get to have great experiences with the e-wallet payment method. This method offers convenience, speed, and security which further translate into an awesome user experience.
Additionally, most e-wallet platforms are very straightforward to use and thus user-friendly. Based on user preferences, online casino gamblers prefer an easier payment method like digital wallets.
While a platform offers an amazing user experience, users might not enjoy the same promotions and bonuses which are offered on bank transfer deposits.
Bank Transfer User Experience
Bank transfer offers online casino gamblers an overall positive user experience. This has led to a high number of adopters among online casino players. The fact that the payment method attracts bonuses, unlike e-wallets when used to deposit in online casinos, also gives it an upper hand on those who enjoy the bonuses.
Nonetheless, some users find this method a bit risky due to the fact that you share your bank details with the e-casino. Most users are afraid that the payment method might pose security challenges in case of data leak and security breaches.
Additionally, the bank transfer method is relatively slower when it comes to transaction speeds, which could further contribute to an unsatisfying user experience if a transaction takes too long.
Conclusion
This piece has underlined all key aspects of comparing bank transfer vs e-wallet payment methods for online casinos. The two methods have major differences in terms of transaction speeds, security, transaction fees, accessibility and convenience regulations, promotions and user experiences. As an online casino player, you need to consider all these factors before making a decision on the best online casino method to use for your payments.
That said, based on the strengths and weaknesses of each method explored above, the e-wallet method seems to be the best of the two. It offers faster, simpler and round-the-clock transactions for online casino gambling. Additionally, the method promises users good experiences powered by security transactions and also faces few jurisdictional regulations.
Nonetheless, personal preference and priorities will play a key role in helping you make an informed decision on the payment method to use for your e-betting.