why neteller's current policy is doomed

[peskypup]

back in the late 70s and early 80s, Barclaycard had something like a 70% market share in the UK credit card market.

And there were charges for this and that, 30% plus interest rates. They saw it as an opportunity to rip off customers left right and centre. For some years they made amazing profits from it.

Just like Neteller is now in online gaming banking. But meanwhile Barclaycard was doing 2 things which were undermining their long term prospects:

- making it easy for any low cost base competitor to undercut them.

- totally pissing off their customer base.

The result was that when low cost competitors arrived Barclaycard customers deserted them more or less overninght, and the prfitability has crumbled. Their cost base got fat on all their fat fees and when the pressure was on they found it tough to cut costs.

Their share of Uk credit cards is now less than 20% and they are left in a lot of cases with accounts other companies don't want.

This will happen to Neteller. I don't know when, and I don't know who will come in to destroy their business.

But unless they stop ripping off their customer base they have no long term future in the market.

 

[areeff]

this comes true

 

[krackman]

Excellent post and I agree. While I do admit neteller has been good for people who move money in and out of sportsbooks, the gouging is ridiculous. The $2500 max is also just a way for them to make more money. They say it is "for your protection" Bullshit! It is for them to make more money when someone wants to deposit or withdraw more then $2500.

Wild Bill has a good article on the homepage about neteller needing competition.

 

[BillDozer]

With the pending laws for us I don't know who wants to jump in the water. I'm guessing we'll see more flexcard and individual type solutions from the books.

I know praising them now is like praising how great OJ simpson was but you guys remember that thing called paypal? O those were the days.

 

[oldmantime]

People talk badly about Neteller's fees. But I think the POSITIVE side needs to be mentioned as well. The fee is free or nada or nothing as in zero---IF you are willing to wait 5 business days to deposit!

What amazes me is that no other book (except WWTS) offer the free "insta cash" deposits once and a while.

 

[hanover00]

I never pay any Neteller fees. You could always wire directly to the book. Most books will reimburse your wire fee.

 

[oldmantime]

hanover,
By "wire" to the book if you're talking Western Union; I wouldn't even try these days even if the book pays the fee! Not worth the potential hassle of getting on a banned list, etc. etc.

 

[hanover00]

<BLOCKQUOTE class="ip-ubbcode-quote"><font size="-1">quote:</font><HR>hanover,
By "wire" to the book if you're talking Western Union; I wouldn't even try these days even if the book pays the fee! Not worth the potential hassle of getting on a banned list, etc. etc. <HR></BLOCKQUOTE>
No, I mean bank wires.

 

[oldmantime]

Ok hanover,

I had forgotten about that. Just a bit unnerving to go into my bank and wire money to a sportsbook out of the US.
Banks--might turn you in? No?

 

[hanover00]

<BLOCKQUOTE class="ip-ubbcode-quote"><font size="-1">quote:</font><HR> I had forgotten about that. Just a bit unnerving to go into my bank and wire money to a sportsbook out of the US.
Banks--might turn you in? No? <HR></BLOCKQUOTE>
Well, if they are, odds will be that they are also turning me in for transfers to Neteller, EFT or not. Also, I am far more comfortable completely controlling the transfer using the wire system than giving a non-US company (Neteller) total access to my bank account.

 

[GringoinCR]

If you send 999 or less, you can send WU all day long. Just make up your name. They don't check ID under 999.

Use your heads.

 

[TheGeneral+]

Competition is always good. It is a bonus for us shoppers.

 

[oldmantime]

hanover,
I see what you're saying and it has merit. However Neteller's reputation seems beyond reproach. I've read and I've read , but nowhere have I EVER read anywhere by ANYBODY on ANY forum that has even accessed them of wrongdoing.

 

[Ladeda]

Agree with PeskyPup regarding neteller. They are a decent company and well run but their price gougingg is getting out of hand. Even if you just use EFT's like I do you still have to deal with the fees when withdrawing large amounts at books. The books are getting gouged so badly by Neteller that they are forced to pass some of the fees along to the players.
Not saying Neteller is dishonest. They are just greedy and taking advantage of lack of competition.

Unfortunately, it likely won't end unless online gambling becomes regulated or at least legal in the USA. No legitimate companies are willing to risk entering the market with the legal climate, especially after what happened with paypal.

With no legitimate companies willing the only compitition are from tiny companies developed by books or casinos themselves (Prepaid Atm, Firepay, etc) or scamming smalltimers like Securebuxx.

If any competition comes along that makes me feel as safe as Neteller I will switch to them, even if Neteller reduces their fees to match the competition. unless Neteller offers to pay all the excessive fees neteller is now charging.

 

[TEASERGURU]

I READ THE STORY ABOUT HOW THEY NEED SOME COMPETITION. IT WOULD BE WONDERFUL FOR ALL OF US IF SOMEONE STEPPED IN. ANY MONOPOLY IS BAD FOR ALL OF US. SOMEONE WITH SOME DEEP POCKETS PLEASE STEP IN, SAVE US LOTS OF $$ AND GET RICH YOURSELF.

 

[oldmantime]

If the sportsbooks themselves would accept, regular checks, they would put a MAJOR dent in Neteller. But since they don't trust personal checks; they invite this type of payment system.

I understand it takes a while for a US check to clear in these places--but I can not understand why.

 

[BCBETS]

BC Bets does not charge any fee for Neteller withdrawals.


www.bcbets.com

 

[Phaedrus]

There is plenty of competition for Neteller; books just won't get off their asses and explore the options. It makes me wonder if there is not a kickback arrangement going on; nothing particularly sinister about that, but it sucks for the players that books have granted all but a de facto monopoly to Neteller when there are so many other options.


Phaedrus

 

[TheGeneral+]

I do not doubt anything, but I feel if some books and neteller were scheming that it would have been disclosed by now, but I do not underestimate anything.

 

[Phaedrus]

General

Don't get me wrong; I'm not insinuating some sort of malfeasance on the part of Neteller or any book; as distasteful as a kickback arrangement might be it is hardly immoral in the case in point.

I know a single online exchange that deals in over two dozen e-currencies, and not one of them is Firepay, Neteller or PPATM.


Phaedrus