There is a lot of speculation making the rounds about people receiving checks from Pokerstars, only to have the banks reverse the transactions a number of days later, citing "insufficient funds" as the reason for the reversal. We have the facts for you here at Poker King Blog, verified by several sources.
The issue is not with Pokerstars. Pokerstars does not, in fact, has insufficient funds to cover your payout request. In fact, Pokerstars is probably the best capitalized poker room in the world, and holds all of their clients money in a trust account, which they can't touch to fund their operations. Money for operations and customer's money are two completely different things for Pokerstars, and they don't co-mingle. So don't worry about Pokerstars going under, cause it isn't going to happen.
Second, the issue is not with the check processors that Pokerstars uses. The issue is in fact with a specific bank (at least one bank that we know of at this time) that is not honoring checks that they deem to be from online gambling sources. This bank is Citizen's Bank.
In case you didn't know, Citizen's Bank is a subsidiary of the Royal Bank of Scotland, which was one of the banks that warned it was going to take a hard line on gambling transactions once the UIGEA went into effect. Well, if you are a client of Citizen's Bank and they are reversing your deposits, this is why. If they figure out that the check came from Pokerstars or anywhere else gambling related, they will reverse the transaction and not honor your check.
So, if you are a client of Citizen's Bank and have had your PokerStars check refused, what should you do? Are you screwed?
The simple answer is: no, you are not screwed. First step is to open a new bank account at any bank. There are plenty of banks in the US that are still honoring these checks; go and open an account at the Bank of America or Wachovia. These banks will gladly accept these checks. Sure, they may put a hold on the checks for a week because you are a new customer, but the money will show up in your account.
Second step. Contact Pokerstars and explain your situation. They will cancel the first check, and issue you another one. This time, take the check to your new bank and deposit it there. Problem solved.
Is this a sign of things to come following the UIGEA legislation, or an isolated incident? We'll soon find out.
Technorati Tags: pokerstars - checks bouncing
Filed Under: Poker Room News