What led to this decision is the fact that the companies wanted to make a joint motion in the regulations of the payments industry. If one has a brokerage and doesn’t hold a license, Visa and Mastercard will start deeming them as gambling providers, and therefore will damage their customers’ credit history. This way, the payment processors will find it difficult to provide their services to retail brokers, because of the new chargeback laws.
According to Visa, every Binary Options provider and similar industry will have to face the sanctions and comply with the new laws of money providers. Financial spread betting will also have to comply. Every broker who has these features will have to be registered as a “high risk” to a customer’s bank account.
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