||This article uses bare URLs for citations. (February 2012)|
|Type||Public (LSE: OPAY)|
|Headquarters||Douglas, Isle of Man|
|Products||Online Payments/Money Transfer|
Neteller is an e-money/e-wallet stored-value service owned and operated by publicly traded British global payments company Optimal Payments PLC. People in over 180 countries use the Neteller service to transfer money to and from merchants, almost exclusively online gambling firms, and can withdraw funds to their own bank accounts.
Foundation and regulation
Neteller was founded in 1999 in Canada and moved to Isle of Man in 2004. The operation of the Neteller service has an e-money record with the UK government’s Financial Services Authority (FSA). It is listed as an "Authorised Electronic Money Institution".
Neteller is not a bank and does not lend customers' funds. It is required under FSA e-money regulations to maintain customer funds in separate trust accounts, separate from its operating cash, sufficient to repay all customer balances at the same time.
Neteller began processing online gambling payments in July 2000. By 2005, it was processing payments for 80% of the world's gambling merchants. 95% of the firm's revenue at that time was derived from fund transfers to online gaming firms, with most users US residents.
Accounts of US users were frozen as the firm exited the US, and funds were eventually returned after 30 July 2007. As a result of this enforced exit from the US market, and the risks associated with online gambling, the firm has sought to diversify. Despite this, Neteller fee revenues fell from US$ 239 million in 2006  to $44 million in 2010.
Consumers can sign up for a Neteller account on the company’s website. Accounts may be set up in any major currency including: AUD, BGN, CAD, DKK, EUR, GBP, HUF, INR, JPY, LTL, LVL, MXN, NOK, PLN, RON, SEK, USD. Money can be loaded into the account from a bank, credit/debit card or via many other methods including Giropay, iDEAL, Ukash, Direct e-Banking or POLi. These deposit types vary by country and some are instant.
Money in a Neteller account can be used to pay merchants, sent to other customers of the service, or spent at any retailer that accepts MasterCard using the Neteller debit card that is part of the account. Money can also be received into the account directly from merchants, such as gambling winnings, insurance payouts or video-gaming trading proceeds. Customers can withdraw funds from their accounts by bank transfer, cheque, or using the company’s Net+ MasterCard debit card at point-of-sale and automated teller machines.
Neteller Net+ card
In 2003 the company launched the Neteller Card. In 2007 it replaced these cards with MasterCard debit cards and re-branded the card product line as Neteller Net+ in 2008. Under the Neteller Net+ name the company offers MasterCard prepaid debit cards and merchant-brandable card programs, and formerly offered virtual cards. The Net+ virtual card generated a different virtual card number for each transaction instead of having a fixed card number, preventing some forms of fraud. If unauthorised users obtain and try to use card numbers, or if an otherwise legitimate merchant tries to take additional, unauthorised, payments, the transaction fails as the card number cannot be re-used.
The Net+ virtual card was withdrawn by Neteller on 29 February 2012, citing lack of use by customers.
- "Isle of Man government: Neteller case study". Gov.im. Retrieved 2012-11-04.
- "Timeline/history". Optimalpayments.com. Retrieved 2012-11-04.
- "FSA authorisation record". Fsa.gov.uk. Retrieved 2012-11-04.
- Consumer's funds held in trust[dead link]
- "U.S. Charges Two Founders Of Payment Services Company With Laundering Billions Of Dollars Of Internet Gambling Proceeds" (PDF). Retrieved 2012-11-04.
- "Poker News - NETeller Begins Long-Awaited Payout Plan". PokerListings.com. Retrieved 2012-07-17.
- Williams, Christopher (2007-03-27). "Canada sticks the boot into Neteller". Theregister.co.uk. Retrieved 2012-11-04.
- "Money Transfer & Online Payment | NETELLER – Support". Help.neteller.com. 2007-10-24. Retrieved 2012-07-17.
- "Company Website: Funding and Fees". Public.neteller.com. Retrieved 2012-11-04.
- "Neteller Review". Predictem.com. Retrieved 2012-11-04.
- "Net+ card launched". Finextra. 2008-10-21. Retrieved 2012-11-04.
- "Net+ card review". Jeuxcasino-fr.com. 2008-10-26. Retrieved 2012-11-04.
Read in another language
This page is available in 1 language