Arbusers

I came across the term Open-Loop payment processes. Could someone explain what is this?

Thank you.

Open-loop payment is when a bookmaker or a casino allows a client to withdraw funds in a different method that he/she deposits. It is the the transfer of funds from one payment method to another. The opposite is called closed-loop and it is the system most operators use.

Theoretically, open-loop payments are not forbidden by law, but they come with additional checks and controls by the operator. Most operators will try to avoid this as it could drag regulatory attention.