- Loonio routes payments through your online banking / Interac® e-Transfer rails. You spend only what’s in your bank account; no interest, generally no consumer-side fees beyond whatever your bank charges for Interac; deposits are near-instant and withdrawals are typically 24–48 hours, depending on the casino’s processing.
- Credit cards are widely offered but many banks decline MCC 7995 gambling transactions or treat them as cash advances with immediate interest + extra fees and often lower cash-advance limits. This can make credit cards more expensive and less reliable, even when operators list them. That being said, there are many online in Canada that still accept credit cards.
- For most Canadian players prioritising cost control, reliability, and fast withdrawals, Loonio/Interac is the practical default. Credit cards make sense only if your bank approves MCC 7995 and you fully accept cash-advance fees/interest (or if you’re using a card that explicitly doesn’t treat deposits as cash advances—rare in Canada).
What is Loonio—really?
Loonio is a Canadian payment facilitator that lets merchants (including online casinos) accept Interac e-Transfer and online banking payments. From the player’s perspective, you authenticate with your existing bank login and approve a payment request; you’re not extending credit and you can only spend funds available in your chequing/savings account. Loonio highlights bank-grade security, consumer-friendly “spend only what you have” principles, and broad bank coverage.
Key implication: Loonio inherits Interac economics and limits. Interac charges wholesale fees to financial institutions (not to you), and banks decide whether to pass fees to consumers—many chequing packages include free Interac e-Transfers; some savings/business accounts still charge ~$1–$1.50 to send. Receiving is typically free. There’s a reason why Loonio is one of the most recommended payment methods on Nightrush.
Credit cards for iGaming: how they’re treated in Canada
Most iGaming deposits on Visa/Mastercard are coded under MCC 7995 (gambling). Banks and networks can block or restrict these by policy or law. In Canada, many issuers treat gambling transactions as cash advances, adding:
- Cash-advance fee (commonly 3–5% or flat + percentage)
- Immediate interest at cash-advance APR (often higher than purchase APR)
- Lower cash-advance limits (sometimes ~5–20% of total credit line)
These policies lead to declines and/or unexpected costs, even when an operator “accepts” cards.
Ontario’s regulated market (iGO/AGCO) allows operators to offer bank transfer, debit, and credit deposits if they comply with KYC/AML, but whether your bank approves a given credit card transaction is another matter.
Head-to-head: fees, speed, acceptance, and risk
Cost & fees (player perspective)
| Factor | Loonio (via Interac/Online Banking) | Credit cards (MCC 7995) |
|---|---|---|
| Deposit fee | Usually $0 (casino absorbs) or whatever your bank charges for sending Interac (often $0 with many chequing packages; some accounts $1–$1.50 per send). Receiving is free. | Cash-advance fee typically 3–5% (or a flat amount + %), plus immediate interest at cash-advance APR. |
| Withdrawal fee | Casinos generally don’t charge for Interac withdrawals; banks don’t charge to receive. | Cards can’t be used for withdrawals; you’ll need an alternate method to cash out. |
| Hidden costs | None beyond possible bank e-Transfer send fee. | Cash-advance daily interest/compounding, lower cash-advance limits can force multiple deposits (multiple fees). |
Speed & reliability
| Factor | Loonio | Credit cards |
|---|---|---|
| Deposit speed | Near-instant / typically <30 minutes into casino balance (varies by operator/workflow). | Instant when approved. |
| Withdrawal speed | Operator processing + Interac rails: commonly 24–48 hours to your bank once approved. | Not applicable (you can’t withdraw to a card; you’ll switch to Interac/bank transfer or e-wallet). |
| Decline risk | Low if your bank supports Interac e-Transfer; coverage spans 20M+ Canadians with online banking. | High variance: many issuers decline MCC 7995 or cap cash-advance limits; declines are common. |
Acceptance & eligibility
| Factor | Loonio | Credit cards |
|---|---|---|
| Availability | Canada-only; supported widely across Canadian-facing casinos (esp. Ontario-regulated and reputable offshore sites). | Listed by many operators, but issuer policies often block/limit. |
| KYC/Compliance | Standard iGO/AGCO KYC at the casino level; Interac adds bank-level authentication. | Standard casino KYC; bank card checks done by issuer; MCC 7995 flags gambling. |
| Responsible use | Pay-as-you-go—you can’t spend more than your balance. | Credit-based—easier to overspend; cash-advance debt accrues immediately. |
When to use which? (decision matrix)
| Your situation | Recommended rail | Why |
|---|---|---|
| You want predictable costs and fast cash-outs | Loonio/Interac | Minimal/zero consumer fees, no interest, withdrawals via Interac in ~24–48h. |
| Your bank frequently blocks card gambling | Loonio/Interac | Avoids MCC 7995 decline headaches. |
| You manage bankroll strictly from a chequing account | Loonio/Interac | Spend-only-what-you-have behaviour aligns with RG best practices. |
| You chase card rewards and your issuer does not treat deposits as cash advances (rare) | Credit card (case-by-case) | Only if confirmed no cash-advance fee/interest; otherwise rewards are dwarfed by fees/interest. |
| You need to cash out quickly to your bank | Loonio/Interac | Direct bank withdrawals; cards can’t receive withdrawals. |
Real-world costs: worked examples
Example A — $500 deposit, one withdrawal
- Loonio/Interac path
- Deposit: likely $0 (if your chequing includes free e-Transfers).
- Withdrawal: $0 (casino + bank receive typically free).
- Total payment cost: $0 (or up to $1–$1.50 if your account charges to send).
- Credit card path (typical)
- Cash-advance fee at, say, 3% = $15.
- Interest accrues immediately at, e.g., 22.99% APR until repaid (even if you pay quickly, you’ll pay some interest).
- Total payment cost: >$15 (plus interest), no direct withdrawal route back to the card.
Example B — Deposit declines / limits
- Card fails due to MCC 7995 or you hit a low cash-advance limit (e.g., 5% of $10,000 = $500). You either split into multiple deposits (more fees) or switch rails.
- Loonio/Interac typically clears if your bank supports e-Transfer and you’re within bank/operator limits.
Limits you should know about
- Interac/Loonio: Specific per-transaction/daily/weekly caps vary by operator and bank; many casinos advertise daily caps in the $3,000–$4,000 range and withdrawals in 24–72 hours (operator-dependent). Your bank may also have Interac send limits (often $3,000 per 24h on retail accounts; higher on business).
- Credit cards: You’re constrained by cash-advance limit (not your full credit line). Even premium cards may cap this at a small fraction.
Privacy and bank statement hygiene
- Loonio/Interac: Transactions reflect bank transfers approved through your online banking; visibility is at your bank (and the casino’s payment descriptor). Loonio positions itself as leveraging bank-grade security and standard Interac flows.
- Credit cards: MCC 7995 explicitly flags the merchant category as gambling. Issuers and credit bureaus can see cash-advance activity; some banks/public policy discussions treat card gambling riskily.
Rewards and chargebacks
- Rewards: Most issuers exclude cash advances from earning rewards. Even if you earned points, fees/interest would typically exceed their value.
- Chargebacks: With Interac/Loonio, think of it more like bank transfer—no classic card chargeback right. Dispute handling is via the casino’s policy + regulator oversight (iGO/AGCO in Ontario). With credit cards, chargebacks exist in theory, but gambling cash advances are poor candidates for consumer-friendly chargeback outcomes.
Compliance, KYC & safer-gambling context
- Ontario operators must meet AGCO/iGO standards (KYC before deposits/withdrawals, transaction monitoring, AML). Loonio/Interac dovetails with bank-level authentication, which complements these checks. Recent enforcement (e.g., theScore fines) underscores RG scrutiny.
Comparative scorecard (2025)
| Dimension | Loonio / Interac | Credit Cards | Verdict |
|---|---|---|---|
| Up-front costs | Low (often $0) | High (cash-advance fee) | Loonio |
| Ongoing costs | Zero (no interest) | Interest from day 1 | Loonio |
| Deposit success | High (broad bank support) | Variable (issuer blocks) | Loonio |
| Withdrawal path | Direct to bank | No (need other rail) | Loonio |
| Speed (net end-to-end) | Good (instant deposit; 24–48h withdrawal) | Good deposit when approved; no withdrawal | Loonio |
| Budget discipline | Strong (no credit) | Weaker (credit + interest) | Loonio |
| Rewards | None | Often none (cash advances; fees negate value) | Tie |
| Availability | Canada-only | Listed widely but blocked often | Loonio for Canadians |
Practical recommendations
If you’re in Ontario’s regulated market
- Default to Loonio/Interac for deposits and withdrawals. It aligns with iGO expectations, is reliable across banks, and keeps costs near zero.
- Keep a verified profile (KYC complete) before a big withdrawal to avoid delays.
If you primarily play at reputable offshore sites that support both
- Start with Loonio/Interac; move to cards only if a specific promo requires a card and you understand the fee/interest implications.
- For larger cash-outs, Interac remains the smoother lane back to your bank.
If you were hoping to use a credit card for rewards
- Call your issuer and explicitly ask how they code casino deposits and whether cash-advance fees/interest apply. In Canada, expect cash-advance treatment. If so, skip it.
Common pitfalls to avoid
- Assuming “credit card accepted” = your bank approves. Operators can list cards, but issuer policies decide. Expect declines with MCC 7995.
- Underestimating cash-advance costs. Fees + day-one interest can make a “bonus” effectively negative EV.
- Not verifying Interac send limits. Some banks cap daily sends (e.g., ~$3,000 per 24h on retail). Plan deposits/withdrawals accordingly.
FAQs
Is Loonio a bank or e-wallet?
Neither. It’s a payment facilitator that enables merchants to accept Interac e-Transfer/online banking payments. You authenticate with your bank; funds move via Canadian banking rails.
Are Interac/Loonio deposits free?
Most casinos don’t charge a player fee; many chequing accounts include free e-Transfers. Some account types charge $1–$1.50 to send. Receiving is free.
How fast are withdrawals with Loonio?
Once the casino approves, Interac payouts generally land within 24–48 hours (operator-dependent).
Can I withdraw to a credit card?
Practically, no. You’ll withdraw via Interac/bank transfer or another method.
Do credit cards ever make sense?
Only if (1) your issuer doesn’t treat deposits as cash advances (rare in Canada) and (2) you settle immediately with no fees/interest. Verify first.
The bottom line
For Canadian players in 2025, Loonio/Interac is the superior default for online casino and sportsbook banking. It’s cheaper, cleaner, and more reliable for both deposits and withdrawals, with built-in discipline (no revolving debt).
Credit cards remain an edge case: sometimes convenient, often declined, and usually more expensive because of cash-advance rules.
If you care about speed, acceptance, and total cost, pick Loonio first—and keep your KYC in order so withdrawals move without friction.
