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Chargebacks being 100% deducted from commissions – is this fair?

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  • #586567

    Hi Guys,

    Now I have never really paid close attention to chargeback details and how they work. So I may be completly independent when I think that this is ridiculously unfair and wrong. But maybe it’s the norm and I just didn’t realize this…..

    I noticed this month I had a deduction of $145 from my monthly commissions at Fortune Lounge. I was kind of suprised at the amount and assumed it meant that I had a $680 (pardon my half ass math skills) chargeback somewhere along the way. So thinking that seemed kind of high, I went through the audits they offer and could not find any thing close to that amount.

    So I emailed them asking them if the amount was 25% of the chargeback amount or what the deal was. I assumed that if a chargeback happened that I would eat the 25% share of it since I make 25% of any deposits made. Makes perfect sense right?

    Well the response I got was:

    Chargebacks are not deducted from your earnings at twenty-five per-cent but at the full amount. The reason for this is that the money is lost to the casino as bad debt. The full amount of the chargeback, therefore, was not $500 but in fact $145.


    That’s Fortune Affiliates response and I am kind of pissed off about that. Yes it may be bad debt, but we’re not talking about services rendered or durable goods given for a cost – and I surely hope they would fight a chargeback if someone made a withdrawal and then tried to chargeback as fraud.

    So with this said, Fortune Affiliates ends up making about $100 off me, for a chargeback that they only originally gave me 25% of the commission for. Where is the sense in this? They get to profit off this and I only lose quadruple the amount I made? The player then gets off, they get their chargeback, Fortune Affiliates gets a profit off the hwole thing, and not only I get squat, I lose a chunk of my commission for the month off something I never made money off of.

    Am I nuts for being pissed? Is this how all the programs go about chargebacks and I never noticed??? Is this okay?


    Hi Matt

    I’m not surprised you’re feeling a bit put out by the chargeback issue. Nobody likes chargebacks but unfortunately this type of fraud is something that we all have to put up with.

    If there is a chargeback from a WagerShare affiliate player then we deduct this chargeback from the affiliate’s net revenue. As such, we are only charging the affiliate their percentage share of the chargeback.

    Afterall, it is the affiliate revenue that is affected 100% by the original purchase, why then should a program deduct the full chargeback from an affiliate’s commission?

    I’m not sure what the standard procedure for affiliate programs is on this, but WagerShare has only ever deducted the affiliate’s share of the chargeback from their earnings, never the whole thing.

    Best regards,



    If there’s a chargeback to the casino, the only chargeback to the affiliate should be their share of that revenue. I’d be interested in seeing confirmation that this is how that particular program does their accounting. If so, then I will no longer be promoting that program, as that’s just…

    Heck, that’s just plain crazy!


    Guys I am going to move this down to the Fortune Affiliates section as it pertains to them and I am interested to see their response. Charging 100% instead of the affiliate percentage does not sound reasonable.


    Hi All

    Let’s clarify this chargeback issue quickly.

    We deduct chargebacks at the commission percentage and NOT the full amount.
    This was an erorr in response by one of the Support guys.
    This has been taken up with him and dealt with.

    We deduct chargebacks at the same rate we pay earnings.
    Therefore the Affiliates does not bear the cost of the chargeback and the Affiliate program does not make a profit off the chargeback.

    I apologize deeply for the confusion and can assure that we do NOT deduct full chargebacks.
    Thanks to Tim for taking the chance to punt his own program but we function the same on chargebacks.
    On top of this we also have a new audit report on our website that displays data at a player level.
    This is a great tool to use when checking things like chargebacks and player activity.

    I am very sorry for the confusion and trust that all is clear once again.



    No probs Marc, I’ll tee ’em up you knock ’em down! :D


    Thanks Marc
    I was sure this was a case of miscommunication.

    Can you do me a favor and double check Matts account and ensure the numbers are correct? Was the actual charge back for approximately $680?


    Great job with the rapid response to the concern, Marc–that’s what makes this forum so great!


    Hi Randy

    Thanks for this.
    I agree the forum rocks!
    The only problem is if you are on leave you miss out.
    Please excuse the gaps in my posts but I have been away quite a bit over the last 2 months.
    Now I am back!!!!

    We resolved everything with Matt on the day and he was happy.
    I have spoken to his Relationship Manager and he is going to double check that this is still the case.

    Thanks for a great forum and even better community!

Viewing 9 posts - 1 through 9 (of 9 total)