@Alex_Chipleader 212640 wrote:
Hi,
10) From an affiliate perspective, are Chargebacks strictly calculated against revenue earned ? Are Deposit fees assessed to affiliates for US deposits, deducted from these Chargebacks, to avoid a double-dipping penalty ?Yes, we currently deduct from the affiliates ONLY the amount that was originally paid to them, on the revenue generated by the “fraud player”, calculated from the date of the deposit, until the date of the chargeback notification. (NOTE Starting December 1st, the calculation will change so that the chargeback amount is deducted from the affiliate’s Gross Revenue, regardless of the amount originally paid for that player)
Alex,
First of all, thank you very, very much for taking the time out to answer these questions in detail. I certainly learned a few things from your reply. Transparency is a key component of any successful business relationship.
In regard to your response to Question # 10 above, I just wanted clarification on the new rules going into effect on December 1st regarding chargebacks. If I am reading this correctly, does this mean that the total chargeback amount will be assessed against affiliates (against Gross Rev), regardless of how much revenue was generated from this fraudulent money ? And from an affiliate perspective, does this mean that it will be better for the affiliate, if the fraudulent player earned a lot of money for us with these dollars, and it will be worse for the affiliate, if the player didn’t earn much money for the affiliate with these fraudulent dollars ? Do I have this right ?
As a crude (and maybe non-realistic) example, let’s say a player fraudlently charges $ 1,000, but the affiliate only earned $ 50 with this money. Today, the affiliate would have the $ 50 deducted from his Total commission, whereas on Dec. 1st, $ 1,000 would be deducted from Gross Revenue. On a 25 % split, the cost to the affiliate would be roughly $ 250 (not $ 50). In this case, the Dec 1st change would be worse for the affiliate.
On the other hand, let’s say that the $ 1,000 fraudlent charge created $ 500 in affiliate earnings. Today, the affiliate would have the $ 500 deducted from Total commissions, whereas on Dec. 1st, $ 1,000 would be deducted from Gross Revenue, and on a 25 % split, the cost to the affiliate would be roughly $ 250. In this case, the Dec 1st change is better for the affiliate.
Is the logic above sound ?
Again, thank you for your efforts here, Alex.