Why is the Withdrawal Method Always Bound to the Deposit Method?

When playing online and making a withdrawal you might have noticed that all the supported payment methods at the casino aren’t available to you when you want to cash out, and that’s because you’re just supposed to withdraw back to the same method as the deposit came from. But why is that? This is what we’ll explain in this withdrawal guide.

Winning deposit determines the withdrawal method

What might be a bit confusing to a lot of players is that it’s not always the last deposit method used that should be used for withdrawals, it is the winning deposit method. That means that if you’ve made a deposit and won, and then added more money to your account with a different payment method, then it’s the first payment method that should receive the winnings. This is then the winning deposit, and the payment should always go back to this one.

Anti Money Laundering

What you need to keep in mind when depositing and withdrawing from an online casino is that the financial transactions are international ones. This means that money is moved across borders, and that again means that the rules are very strict. The rules that say all withdrawals should go back to the same methods as where the winning deposit came from is not something every casino came up with on their own. These rules are actually international rules, set in place to ensure that casinos are not used to launder money, or to funnel money to terror organizations or other criminal or illegal networks.

By making sure that money is not “moved” between accounts, people or countries, the casinos are doing what they can to hinder the use of money laundering, and the Anti Money Laundering (AML) rules they have to work with are very strict. The reason for this is to make sure that the people who deposited the money are also the ones receiving the money when it comes back as winnings, and not a third party. Moving money around to different accounts is not something they want to take part in either, and exceptions are only made when it’s not possible to withdraw back to the initial source of funds.

Verifying the payment methods

At an online casino, all players will at some point have to verify their identity and address, but you might also be asked to verify the payment methods used for transactions in and out of the casino. This is done to make sure that you are the owner of all the payment methods involved in the transaction. If you deposit and withdraw to the same method, without involving any other payment methods, that is what is called a “closed-loop”. This means money is coming and going from the same source, and often you don’t have to verify the payment method, as money hasn’t moved anywhere.

You will always have to verify the payment methods if the source of the deposit is not the same as the recipient of the withdrawal. You will then have to send in proof that both methods belong to the same person, meaning you. This is when the casino makes an exception from the general rules about “closed-loop”, either because you have a mix of funds in your account from different payment methods, or because a withdrawal back to the winning deposit method is not possible to process. This can happen if you have made a deposit with a credit card that doesn’t accept payment, or a prepaid option not connected to an e-wallet.

Avoiding chargebacks

In addition to the rules a casino has to follow for AML reasons there is also another reason why a casino wants to send money back, instead of to some other account. This is due to chargebacks, which is a term used when a transaction has been challenged by the owner of the payment method through their bank. If someone, for instance, steals your card or card details, makes a big payment online or other unauthorized transactions, you’ll contact your bank, who will block your card and file for getting the money back from the merchants who accepted these payments. This is a chargeback.

As long as a casino has accepted payments they can be subject to a chargeback if someone uses a stolen card or something similar to deposit into a casino account. If the casino then pays out winnings from these deposits to another account, and then receive a chargeback for the deposit, they lose out twice. Alternatively, If they pay the winnings back to the same card a chargeback wouldn’t be possible, as the funds have been returned in the form of a withdrawal. And besides, no one steals a card just to send more money into the account of the person they stole the card from, so as long as a payout is going to the same card the casino is safe.

As an extra means to this, some casinos actually start all their withdrawals as a refund. If you’ve deposited with several payment methods you’ll have to get a refund to all these methods first, and the rest of the funds you can choose where they should be sent, as long as the payment method is verified of course.

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