IQ-Ludorum enters prepaid Visa payment business

[AdamSelene]

US Online Gamblers Still Playing, ‘Work Around Number’ Two For February

Mark | February 28th 2007 - 13:12

Lesser known online payment options for US players are now becoming popular. How long will it last? No one knows, but here is the second US method I have seen this month. The first ‘work around’ was also a prepaid card.

The newly popular option for US players is the PayTru prepaid Visa® card. This gaming deposit method is NOT an e-wallet, it is a prepaid Visa® card. It does not appear to be the kind of massive billion dollar operation like the ones singled out by the anti-gambling folks. Besides the Visa® logo, there does not seem to be any direct connection to US banking. Does the Island of Antigua ring a bell for payment processing?

PayTru handles the issuance of Visa® branded prepaid debit cards to consumers worldwide. The PayTru prepaid Visa® card is good at merchants anywhere in the world which display the Visa® or PLUS® logo. Additionally, the PayTru prepaid Visa® Cards work at almost one million ATMs worldwide.
PayTru, the debit card company, operates its proprietary debit card-based electronic transaction processing system (www.paytrucard.com) using the Internet for sales and marketing.

IQ-Ludorum PLC seems to steer the ship. They acquired a 33% minority interest in PayTru Card Services Ltd (’PayTru’) in May of 2006. IQ-L integrates the underwriting and issuance of the prepaid debit cards in real time directly from gaming web site. Its really a smooth integrated operation.

PayTru is co-owned by Gateway Payment Solutions AG Deutsche Bank and Global Bank of Commerce who sponsors and guarantee the PayTru transactions with VISA and MasterCard.
About the operation:

IQ-L’s current compliance procedures exceed the anti money laundering regulations imposed on domestic banks in the US and all payment products subscribe to the ‘Payment Card Industry Data Security Standard’. All transactions are coded in strict accordance with VISA and MasterCard international guidelines. IQ-L has consulted with the Antiguan government on what additional controls they would like to see in place and is currently working closely with authorities with the intent to maintain their e-commerce transactions at the fore front of international compliance. IQ-L performs extensive due diligence on all of its customers and will only deal with companies that are fully licensed in the jurisdiction that they operate.
​

If you happen to try this method, please let us know your experience.


http://digitalmoneyworld.com/us-online-gamblers-still-playing-work-around-number-two-for-february/

 

[jorzavfa]

This is old news Iq-L, is not longer Iq-l they start processing money long time ago.

 

[AdamSelene]

Yeah, I know it's sort of old news (on a new blog post).

Anyone using PayTru cards? I could not find any way to order a card.

http://www.paytrucard.com/


Given these deals were made before the NETELLER indictments, I wonder if IQ-L (especially being a public company) will get cold feet.

--------------



IQ-Ludorum plc
Interim Report
For the six months ended 30 June 2006

(excerpt)

The Group has used the past 6 months or so to complete two core acquisitions and
also to fully engineer and test our systems. Our products are now fully
operational and during the second two quarters of 2006, we expect to see the
commencement of real operating revenues from our new business. The Group expects
this year to be one of transition as it moves away from its egaming roots
towards being an ecommerce solutions provider.

The first acquisition was First Pay Ltd ('First Pay') on 19 April 2006. As
previously disclosed to the market First Pay is an online payments company
specializing in integrated debit card solutions. First Pay operates on the
internet (www.first-pay.com) and as an integrated payment option on third party
ecommerce websites. A major asset acquired pursuant to the First Pay transaction
is a long term payment processing agreement with the NetBet family of gaming
companies, including World Sports Exchange, an Antigua-based internet gaming
operator. The payment processing agreement provides for the World Sports
Exchange ('WSEX') to deliver a minimum of $250,000,000 in payment processing
volume to First Pay over the term of the agreement. WSEX was one of the earliest
entrants into the remote gaming business (1996) and operates one of the most
successful gaming businesses on the internet.

The First Pay product has been successfully launched and the initial reaction
from e-commerce merchants is very exciting with significant interest having been
shown from the e-commerce market. The current sale pipeline reflects this wide
level of interest with very promising prospects representing all areas of
e-commerce. The Group's current strategy is to maintain a balanced portfolio of
customers and not to place undue emphasis on any particular market or industry.
Such is the flexibility and appeal of the product this goal should be easily
fulfilled.

The Group also acquired a 33% minority interest in PayTru Card Services Ltd
('PayTru') on 18 May 2006. PayTru operates a proprietary debit card-based
electronic transaction processing system (www.paytrucard.com). The PayTru system
manages the issuance of VISA branded debit cards to consumers worldwide over the
internet. Consumers use the internet to load value on to their PayTru card for
any online purchase or money transfer. PayTru generates fee income when PayTru
cards are loaded with value and whenever and wherever they are used by
cardholders at point of sale, ATM's and other offline and online purchases.

M2A and Gateway Payment Solutions AG ('Gateway') established PayTru in order to
pool their respective expertise and distinct technology platforms. IQ-L assumes
M2A's role in the venture in providing its proprietary online banking technology
(i24-BankTM), including debit card issuing software infrastructure (i24-CardTM).
Gateway will continue to use its long established distribution channels for the
PayTru programme worldwide to its extensive merchant network. Deutsche Bank and
Global Bank of Commerce will continue to sponsor and guarantee the PayTru
transactions with VISA and MasterCard.

PayTru brings together several industry leaders with extensive transaction
processing resources who recognise the competitive edge of one another's
technologies. PayTru is already gaining significant acceptance with leading
merchants worldwide.

PayTru will continue to be co-owned by Gateway Payment Solutions AG
(www.gfslonline.com), and already provides merchant services to over 6,000
customers. PayTru has recently executed a payment processing contract with
Cassava limited, the owner of what is believed to be the largest internet casino
in the world. PayTru has a significant pipeline of customers with whom it is in
various stages of negotiation or implementation.

Furthermore, in June 2006, the Company entered into a joint venture with Debit
Loans LLC to further commercialise our growing prepaid debit card portfolio.
Debit Loans LLC has invested $5,000,000 into the joint venture to be used to
facilitate an instant-access overdraft feature on all IQ-L debit cards in
exchange for fees paid by the debit card holder.

IQ-L has now completed the $15,000,000 strategic investment in Global Bank of
Commerce, a full service bank incorporated in Antigua. IQ-L purchased 15,000 non
voting preference B common shares in the bank. Under the agreement IQ-L will
receive 66% of the profits of the Bank's E commerce channel. The completion of
this investment took place on 21 September after regulatory approval was
received. This transaction means that the Group has the ability to command a
greater margin from its e-commerce acquiring. In addition the Group can now
expand its Compliance Engine SM, a technology that verifies identities of
internet payment customers to prevent fraud, under age gaming, money laundering
and implements various international banking security measures in real time.
Lastly, and most critically, any viable payments and card issuing business
fundamentally relies on banks for access to the world financial system.
Regulated banks settle payments and transfer funds more efficiently than any
other mechanism and are the only permitted members of the worldwide card
associations (VISA and MasterCard). Direct access to the established global
infrastructure of VISA and MasterCard is vitally important to any processor,
though very few have a strategic interest in an institution providing a share of
processing profits that provides them this advantage. Since the number of banks
willing to perform payment processing over the internet is very limited, this
investment represents a significant competitive advantage for IQ-L.

IQ-L's current compliance procedures exceed the anti money laundering
regulations imposed on domestic banks in the US and indeed in other
international jurisdictions and all payment products subscribe to the 'Payment
Card Industry Data Security Standard'. Know your customer controls are
continually being updated and are subject to annual regulatory review. IQ-L is
committed to developing additional features and controls to make e-commerce
transactions transparent and secure. All transactions are coded in strict
accordance with VISA and MasterCard international guidelines. IQ-L has consulted
with the Antiguan government on what additional controls they would like to see
in place and is currently working closely with authorities with the intent to
maintain their e-commerce transactions at the fore front of international
compliance. IQ-L performs extensive due diligence on all of its customers and
will only deal with companies that are fully licensed in the jurisdiction that
they operate.