Internet Gambling Bill Derailed

Stacy Kaper reports for the American Banker on comments from Rep. Jim Leach on last week's demise in the Senate of a bill intended to limit Internet gambling. The Independent Community Bankers of America had commented late last month (PDF) that the bill would "would create an impossible compliance burden for “uncoded” transactions. Unlike credit card transactions, which include a code that identifies the type of business – including gambling – that is receiving payment, uncoded transactions do not provide a bank with this information. So, while it is possible to monitor and block credit card transactions, a bank cannot do this with uncoded transactions. Uncoded transactions include Automated Clearing House (ACH) transactions as well as paper and electronic checks."