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A Casino except chargebacks to a certain degree, it is all about how strict the fraud department is. Most Casinos can probably get away with a 0 % chargeback for a period of time, but that would mean that the fraud department is to effective and is also blocking legitimate players as well.
I reckon a charge back rate is aprox around 2% for an average Casino.
If a person claims a chargeback it is very hard for the creditcard company to refuse it if it has never occured before on that creditcard.
Henrik
As someone who worked in card processing systems writing backend software – we got to know the rules quite well.
Basically, any credit card customer can dispute any transaction and initiate a chargeback.
The burden of proof is then upon the merchant to prove that they took adequate steps to verify the identity of the cardholder :
PHYSICALLY ONSITE
– signature on slip
– pin authorised pos transactionONLINE / MAIL ORDER
– cvv typed from back of card (etc).
– correct cardholder name and address details.In practice, the acquiring bank who signed the merchant usually refunds to the cardholder bank and slaps the merchant for the cost of the transaction.
A merchant that has a higher % of disputed transactions also has to pay a higher % fee for authorisation to cover the extra costs.
The shorter answer seems to be yes – most merchants simply wear the costs with out fighting it …And I guess especially if it’s a casino / poker room / bookmaker and a US domiciled card … as it’s difficult to go “all legal” on the cardholder.
:sarcasm:Yes – most merchants will not fight the chargebacks so that they dont receive the higher fees. i’d recommend you take a look at the level of fraud protection to ensure you dont keep getting stung.
Yeah I have had a few BIG charge backs but only on one sportsbook I promote. I emailed and asked what the problem was and they told me I should look at my marketing techniques that I’m using to bring in traffic. LOL :hattip: That is part of the game if you are in this business, there will always be people trying to cheat online casinos.
I have always been very sceptical about charge backs – I think that it is a little bit too easy for a casino etc. to cut affiliate earnings at the end of the month.
If I experience a charge back, I always ask the casino etc. for some clarifying informartion, which I usually receive.
I have asked about this problem before here at CAP, but there has not been much interest about it. Guess it’s not a problem for most affiliates?
