Many potential risks for issuers

A Supreme Court ruling allowing gambling on sports at the state level is raising the ante on a wide number of issues for any credit union that issues plastic cards.

Financial institutions will need to reconsider policies and communications with cardholders, while potential risks that include “friendly fraud,” charge-backs, cash-back offers, breaches and even members willing to absorb a ding on their credit than pay gambling losses will all need to be taken into consideration.

For credit unions, there is the additional matter of acting in their members’ best interests.

While CUToday.info reported that most big banks don’t yet allow sports betting—over the Internet or in person—with their credit cards, some sources are forecasting that may change, opening the door for financial institutions to make more on their credit card portfolios.

 

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