Fight iGaming Chargebacks

In the ever-evolving world of iGaming, challenges come in many forms. One of the most formidable adversaries that iGaming merchants face is the chargeback – a financial hurdle that can disrupt operations and threaten profitability.

In our previous article, we explored proactive measures to prevent chargebacks, offering valuable insights into the art of safeguarding your business. However, as experienced iGaming merchants know, even the most comprehensive prevention strategies can sometimes falter.

Today, we shift our focus to the second line of defense, equipping you with the knowledge and strategies needed to effectively fight iGaming chargebacks.

Welcome to the world of dispute management within the iGaming industry, where understanding the rules of engagement and having a well-thought-out plan can be the difference between preserving your financial interests and facing significant losses.

Chargeback Management

Managing chargebacks effectively requires a systematic process that includes several critical steps. First and foremost, maintaining thorough documentation and organized records is paramount. These records should encompass all transaction details, customer interactions, and dispute resolution efforts. Well-documented information is invaluable when responding to chargebacks, as it can serve as concrete evidence in case of disputes.

Upon receiving chargeback notifications from payment processors and financial institutions, it is essential to respond promptly. These notifications will outline the details of pending chargebacks, including the reasons behind them.

Gathering evidence that supports your case is the next crucial step. This may include transaction records, customer communications, and any proof that the transaction in question was legitimate. Based on the cardholder's claim, decide what evidence is relevant to include in your dispute package.

Then you’ll need to write a rebuttal letter outlining the reason the chargeback is invalid and summarizing the evidence you’ve included. Once that’s done, the last step is to submit your response to the issuing bank through your acquirer. Remember that chargebacks have specific deadlines for merchants to adhere to. Failing to meet these deadlines can result in automatic acceptance of the chargeback and additional fees.

Next, we’ll go over each part of this process in more detail and provide some advice to maximize your chances of success.

Gathering Compelling Evidence

When it comes to fighting iGaming chargebacks, one of your most potent weapons is the documentation you have at your disposal. Documentation serves as the backbone of your defense, offering compelling evidence to counter the cardholder's claims.

Types of Evidence to Collect

  1. Transaction Records: These include receipts, order forms, and invoices. Key information to include in transaction records comprises the transaction date, amount, and player details.
  2. Customer Communication: All communication with customers, such as email correspondence, chat logs, and customer service interactions, can serve as invaluable evidence in chargeback disputes.
  3. Payment Authorization Records: Records of any authorization and fraud detection methods used can help verify the legitimacy of a transaction.
  4. Previous Transactions: If a customer made previous transactions that were not disputed, those records can make a compelling case that the disputed transaction was legitimate, especially if they contain matching transaction details. For Visa chargebacks, you may even be able to immediately and permanently reverse the chargeback if you can meet the requirements of Visa Compelling Evidence 3.0.

Maintaining Organized Records

Maintaining well-organized records can significantly enhance your ability to gather and present compelling evidence in chargeback disputes

Consider using a centralized system or software to store and manage your records. This ensures that all relevant information is in one place, making it easier to access. If you can’t centralize this information, ensure that all relevant information for a given transaction can be retrieved as easily as possible.

Regularly update your records and back up your data. This practice prevents data loss, ensuring that you can retrieve the evidence you need, even if there are technical issues. Ensure that your staff is trained in maintaining and retrieving documentation. They should be aware of the importance of accurate and organized record-keeping.

Building a Strong Case

Once you've gathered the necessary documentation, the next crucial step in the process of fighting iGaming chargebacks is to formulate a clear and persuasive argument that leverages the most relevant evidence you’ve collected. Your argument serves as the backbone of your defense and should address the specific chargeback claim. Here's how to go about it:

  1. Understand the Reason Code: Start by ensuring you understand the reason code of the chargeback and the claim it represents. This will help you tailor your response.
  2. Compile Relevant Evidence: Review the documentation you've gathered and select the pieces of evidence that directly counter the cardholder's claim. This can include transaction records, player communication, and payment authorization records.
  3. Write a Rebuttal Letter: Your rebuttal letter is a critical element of your defense. It should be concise, well-structured, and focused on outlining the evidence that disproves the cardholder's assertion.

Of these three steps, the rebuttal letter is where merchants often stumble. It’s a rather open-ended task, and it can be difficult to tell what you’re doing right and what you’re doing wrong. Let’s dive a bit deeper into this topic.

Writing an Effective Chargeback Rebuttal Letter

The rebuttal letter is your opportunity to present a compelling case for why the chargeback should be reversed. It must be brief and to the point, as the issuer’s staff will typically spend less than five minutes reviewing each case.

In the opening paragraph, be clear and concise about your position regarding the chargeback. State your disagreement with the cardholder's claim and the reasons behind your position. Keep the language professional and objective, avoiding any emotional or confrontational elements.

A well-structured rebuttal letter should address the chargeback reason code, clearly explaining why the cardholder's dispute is not legitimate and why the funds should be returned to you.

For instance, if the customer claims unauthorized purchase, your letter should cite evidence, such as an IP address matching previous purchases, to support your case.

Remember that brevity is key. Your chargeback rebuttal letter doesn't need excessive language, lengthy arguments, or exhaustive counterarguments. Keep it short, simple, and to the point. Let the evidence speak for itself. The more concise and persuasive your letter, the higher the likelihood of the bank ruling in your favor.

Once you’ve made your case, include a list of the pieces of evidence you’ve included. The list should briefly state what each document is and the key information it contains. For example:

  • Attachment A: IP records from the time of purchase showing that the purchase came from the cardholder's area and from their Internet Service Provider (ISP).

Ensure the order of the documentation matches the order of the list to avoid any confusion.

Once you’ve assembled the rebuttal letter and supporting evidence, double-check that any requirements the issuer outlined in the chargeback notification have been met and submit your completed dispute package to your acquirer.

You won’t always be successful in getting the chargeback reversed, but with the strategies we’ve outlined, you can recover a significant percentage of your lost revenue.

Conclusion

Chargebacks are not merely financial setbacks; they can erode your reputation and divert resources from growth and innovation. Fighting iGaming chargebacks demands attention to detail, expertise, and continuous improvement.

By leveraging the strategies and techniques provided in this guide, you can protect your revenue and ensure that your company thrives in the face of financial challenges. And if ever you want to take your chargeback management to the next level, or if it just seems like too daunting a task to handle internally, consider seeking out the services of a reputable chargeback management company to create a plan that aligns with your goals and maximizes revenue recovery.

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