Chargebacks affecting your commission

[Casinorep]

Never had this happened so need your thoughts: I have one player who deposited a large sum two months ago. Then he charged back this month and that was deducted from our overall commission. Is this normal practice? Many programs don't rollover player winnings so this almost seems to be in that category.

[TheGooner]

It's normal that chargebacks affect commission even without negative rollover - chargeback can wipe out a months earnings.

[wonderpunter]

It's normal that chargebacks affect commission even without negative rollover - chargeback can wipe out a months earnings.

I
Most chargebacks are fought, and usually won "unless it's US".. I wonder how many affiliates have had the chargeback reverse or is this a 100% lose for the Affiliate?

[hublot]

Yes, very normal, if a player does a CB the operator never sees that money, so there is no revenue and thus no share.

[TheGooner]

I
Most chargebacks are fought, and usually won ..

What do you base this statement on? Is something specific to the industry in Europe?

Globally, customer chargebacks are upheld in favour of the customer 80-90% of the time across all industries.
It is stacked in the customers favour - the merchant does have to prove due card and attention - and prudent ID.

I know that US facing groups that should not accept CC payments often do use a 3rd party front to hide that fact and that puts them in a weak position. They pretty much have little comeback, because even if they successfully fight a chargeback they are likely to be hit with higher charges by the 3rd party for the hassle - or having fought disclosed that they are a betting site they will be cut off.

But in Europe generally most bookmakers / casinos should have good KYC processes - and they should be able to fight chargebacks where they customer is trying it on. I just have not seen it much.

[WagerJoint]

I
Most chargebacks are fought, and usually won

Where did you get that from? Bases on my knowledge it is seldom a casino wins a chargeback case and small chargebacks are rarely challenged because the low probability of a successful challenge + the representation fee + time documenting the facts > the benefit of winning. I think the representation fee is around $50 win or lose, so its not always worth challenging small ones.

We have an interesting one right now where a player admitted right in chat "I lost $1,200 in your casino and I am really not happy about this". Then 10 days later she did a chargeback with the reason code "Cardholder Does Not Recognize - Potential Fraud". So we sent MasterCard her chat logs, front and back of her credit card, utility bill, IP log, front and back of ID and other evidence. Even with this evidence we are not sure it will be enough to overturn the chargeback.

[wonderpunter]

Where did you get that from? Bases on my knowledge it is seldom a casino wins a chargeback case and small chargebacks are rarely challenged because the low probability of a successful challenge + the representation fee + time documenting the facts > the benefit of winning. I think the representation fee is around $50 win or lose, so its not always worth challenging small ones.

We have an interesting one right now where a player admitted right in chat "I lost $1,200 in your casino and I am really not happy about this". Then 10 days later she did a chargeback with the reason code "Cardholder Does Not Recognize - Potential Fraud". So we sent MasterCard her chat logs, front and back of her credit card, utility bill, IP log, front and back of ID and other evidence. Even with this evidence we are not sure it will be enough to overturn the chargeback.

A
A Long time ago I used to co own a weight loss business, high risk on par with gambling, we used to have a fraud department which would make the initial call this would usually be enough to get the player to cancel the charge back "though the $50 fee was never claimed back" after this then player logs history, emails etc all the evidence then sent to the merchant, this in turn is then presented to card holder which they need to dispute. we won quite a few, for US programs it would be a problem but licensed EU casinos should have no problem

I have also seen first hand some big operations and know many of the people who work in fraud department fighting charge backs.. with regards to 10 days later client does a charge back is hard to believe they normally take 4-6 weeks to show up.. if you don't fight chargebacks you would easily slip past your safe % and have your merchant account blocked, so those are my reasons for which i believe charge backs are won

[Renee]

A
A Long time ago I used to co own a weight loss business, high risk on par with gambling, we used to have a fraud department which would make the initial call this would usually be enough to get the player to cancel the charge back "though the $50 fee was never claimed back" after this then player logs history, emails etc all the evidence then sent to the merchant, this in turn is then presented to card holder which they need to dispute. we won quite a few, for US programs it would be a problem but licensed EU casinos should have no problem

I have also seen first hand some big operations and know many of the people who work in fraud department fighting charge backs.. with regards to 10 days later client does a charge back is hard to believe they normally take 4-6 weeks to show up.. if you don't fight chargebacks you would easily slip past your safe % and have your merchant account blocked, so those are my reasons for which i believe charge backs are won

Our risk team is pretty good at fighting the chargebacks but some of them are just unwinnable.

To answer the OPs question, it's normal to have the revenue from the chargeback deducted from future earnings, and with our program we specify that any fee charged to us for the chargeback will also be deducted since that is a cost we would not have had if we had not gotten that player through the affiliate. If a company has too many chargebacks we get fined from the processor and can lose that processor, so it is in our best interests to prevent chargebacks if possible (a transaction can be voided for 3 days from memory so if the player profile fits that of someone who charges back, this would be the ideal move in that situation).

As mentioned above, the fee per chargeback is usually around $50-75. Sometimes the fees can be higher than the chargebacks if for eg they chargeback 5 transactions that total $100 deposits. Thankfully we don't see a lot of them these days.