Online Poker Players Faced with Bounced Checks

July 29 - Experts have been warning for a year now that the Unlawful Internet Gambling Enforcement Act would result in reputable companies leaving the market, and in essence leaving a vacuum for unsavory operations to fill the void that was left.

This scenario was showcased in recent weeks, as online poker players began complaining that their payout checks were bouncing, resulting in loss of income and high bank fees for dud checks.

Upon closer examination, it was found that several large volume online poker sites had been using the services of Zip Payment Solutions, a third party payment service that was supposed to receive money from these sites and then issue checks to account holders.

Unfortunately for the online poker rooms - most of them with a top industry reputation that they are keen to hang on to - Zip Payments has allegedly been issuing uncovered checks, leading to many online players depositing checks that eventually bounce. Needless to say, each bounced check comes with a hefty fee from the bank.

The problem of payment seems to have exacerbated after the particularly huge payment firms such as Neteller were forced out of the market due to the Unlawful Internet Gambling Enforcement Act. Instead, online poker rooms have simply had no choice but to turn to payment processing companies that may seem genuine on the surface but could actually be the front for a shady operation.

According to reports, Zip Payment Solutions has frozen $16 million in funds, with many sites forced to come to the conclusion that they will not see their money again.

From their part, online poker rooms have been reimbursing poker players who have been charged bounced check fees, as can be seen from the posts on popular gambling boards.

However, this case hits home the absolute importance of a regulated online poker and gambling industry so that these types of incidents won't happen again.