What is Neteller?
Neteller as an online payment system was founded in 1999 and is owned and operated by public traded company Optimal Payments PLC., an enterprise that has its roots originally in Canada. In 2004, the company changed its headquarters from Canada to the Isle of Man which therefore means that the Neteller system is subject to the rules and regulations of the United Kingdom Financial Services Authority (FSA).
Although officially not a bank (but still responding to the strict regulations as established by the FSA and therefore to be considered as a bank in terms of safety and security), Neteller is required to keep its customer’s funds at all times in separated trust accounts, thus being able to pay out the balances of all its clients all at once if needed.
The Neteller system is available worldwide in many countries, has millions of account holders, and is focussed on carrying out money transfers between individual customers and betting sites. As a matter of fact, in 2000, the service covered about 80% of all money transactions between players and betting websites.
To be able to use the Neteller payment service one needs to open an account on their website using some basic (personal) data such as name, address, date of birth, desired account currency, a password and the answers to some security questions. The most important requisite however is that one must have a valid e-mail address.
Once this procedure is complete the applicant immediately receives their Neteller account ID number and the account security ID. From this moment on the user can upload money to fund online transactions and receive money from third-parties. However, at this stage the account is still considered “unverified” (see below) and therefore has some restrictions in use.
The methods available for uploading funds to the Neteller account depend on the country in which the account holder is residing. Of course the international credit/debit card providers MasterCard and Visa are accepted as funding sources, as well as local (online) bank transfers and other e-wallets or online payment services. Fees and processing times vary.
Withdrawing funds from the Neteller account can be done by cheques, bank drafts, bank transfers, and Member Wires. To withdraw funds from the Neteller account and to fully profit from the system, the account needs to be upgraded to “Verified”. This is done by providing a readable image of a valid ID (with photo) of the account holder.
In most cases, any transaction made using this platform is carried out instantly. Strong encryption is used to ensure safety and the transfers are completely anonymous.
Advantige to use Neteller
• Payments are very safe, with encryption included
• Transfers are completely anonymous as the recipient will only see the account ID
• Deposits and withdrawals are carried out instantly
• There’s no risk of building up debts as no credit is provided by the system.
• Deposits and withdrawals are possible from betting sites, something that is not always the case with other online payment services.
Disadvantige to use Netller
• The registration procedure (the verification part, in particular) can be somewhat time consuming
• Fees are charged for some applications
• The limits that are applied on certain account functionalities