Neteller Removes instaCASH Option for U.S. Customers

Neteller, the most popular payment processor for online poker players, has eliminated the instaCASH payment option for its United States customers, effective January 16. While the company says the decision is not related to the arrests of its two founders this week, it most certainly is.

instaCASH allows a customer to deposit funds into his Neteller account directly from his bank account even before the funds clear the bank account. This allows a customer to avoid having to wait several business days for the funds to clear. Neteller assesses a fee on all instaCASH deposits.

Most online poker rooms accept instaCASH deposits, providing a way for a player to get funds from his bank account to the poker room in a matter of seconds. The funds funnel instantly from the bank account, through the Neteller account, into the online poker account. No fuss, no muss. At times, online poker rooms have covered the extra fees.

Wednesday, Neteller announced that U.S. customers will no longer be able to use the instaCASH deposit option. In answering its a question on a FAQ page on its website, the company did not say definitively whether or not this decision was related to the arrests of its founders or October’s anti-online gambling legislation in the U.S. Instead, Neteller said, “We initiated some policy changes around instaCASH before the end of 2006 and this is the next step.”

Neteller can say what it wants to say, but there is almost no way that this move was unrelated to Monday’s arrests. The timing is just too coincidental. The arrests occurred Monday, the official statement and complaints from the U.S. Attorney’s Office were release Tuesday, the same day the instaCASH move was announced.

Considering Stephen Lawrence and John Lefebvre are accused of “…conspiring to transfer funds with the intent to promote illegal gambling,” Neteller’s statement looks like nothing but spin. instaCASH made it possible for customers to move money from their bank accounts to online gambling sites in one fluid step without any waiting period whatsoever. Regardless of what one thinks of the anti-online gambling laws, new or old, it cannot be denied that Neteller facilitated instant money transfers from Americans to foreign gambling companies. The company is obviously nervous about further legal ramifications and has taken a step to try to look better in the eyes of the U.S. government.

Standard deposit methods are still available for U.S. customers at Neteller. The company says that it is re-evaluating instaCASH and has not made a decision regarding its future availability.

Originally published 12:31 PM Wednesday, January 17, 2007