A reader who works in the chargeback section of a major credit card company has just about had enough with people tossing around “chargeback! chargeback!” as the solution to every customer service problem. While it is a great tool, you gotta make sure you use it right. To help you do that, here’s our credit card company insider’s guide to the top 10 reasons why your chargeback will get rejected.

10. LYING
Remember, the merchant does have a chance to rebut these things. If you tell us that you ordered widget A but received widget B but have no proof, and the merchant sends proof that you actually ordered widget B, you’ll probably be getting rebilled!

9. THE CHARGE IS TOO OLD
Please, please check your statement every month. We work within very limited timeframes, and, technically, you are required to notify us of a dispute (in writing! Just calling in doesn’t obligate us to do anything), within 60 days of the statement date the charge appears on. Visa gives some extensions: non-receipt and quality. With quality, you have to show you’ve been working with the merchant consistently to resolve the problem. MasterCard pretty much only gives extensions on non-receipt.

• Word these really are calendar days, far from online business weeks, thus trips will undoubtedly be measured too. When 120 times, you drop unwanted the ability to make an internet betting house chargeback request. A vendor, and that is the on line online casino, however, which may mind your main chargeback request.
• What Happens When You Chargeback Gambling Deposits. It’s important to remember that the UIGEA made it illegal for companies to process funds to online casinos but it did not make it illegal for U.S. Residents to play at them. Therefore, in extreme situations they could escalate the matter to involve your local police, so you’d better be.

8. NOT GETTING A SECOND OPINION LETTER FOR CHARGEBACKS OVER $100
If you’re disputing the quality of something over $100.00 or so, it pays to get a second opinion letter. Within reason, of course. If you’re disputing the quality of a repair, on the other hand, you pretty much have to have one. These need to be on a merchant’s letterhead and have actual details about your dispute. “Car still broken,” will get you started, but if the merchant sends a rebuttal it’s probably not going to fly.

7. YOU BOUGHT IT IN FRANCE
The lovely consumer protections we enjoy in the U.S. do not follow you across our borders. If you buy something overseas, the burden is on you to return the item and prove it the merchant accepted the return before we can do anything. International quality disputes? Forget it. Strangely enough, this is the one category that MasterCard is better in as it does not differentiate between domestic and foreign merchants.

Possible Chargeback Loophole In theory, chargebacks are there to prevent customers from 'errors' by vendors. Over the years, it has happened to me on a number of occassions. Double charging and in one case (with an accredited casino), I was charged over £2,000 having not logged on for several weeks. As you can imagine, I was not too chuffed.

6. TRYING TO CHARGEBACK A DIRTY HOTEL ROOM AFTER YOU STAYED IN IT
If you go to a hotel and the room is filthy, leave within 20 minutes and get proof of your checkout, if possible. If you stay the night, you accept the room.

5. NO PROOF YOU MADE THE RETURN BY MAIL
When you return something by mail, GET PROOF OF RETURN. This can not be emphasized enough. Tracking numbers work best, return receipts work as well. When you return something you have the same burden of proof to show the merchant gets it back as they do to show you have it in the first place.

4. FORGETTING THE DATE IT HAPPENED
When asked for dates, please provide them and be as specific as possible. It doesn’t have to be exact, but if you called around the middle of the month, April 15, 2009 is better than April 2009, especially since we’re going to have to call you to get a more specific range and do the same thing anyway. “Don’t remember” is not a valid option.

3. NOT GIVING THE MERCHANT A CHANCE TO FIX THE PROBLEM
Get in touch with them before you get in touch with us. Believe it or not, most merchants are actually on the up and up! If the merchant offers to try to fix whatever problem you have without charging more, you have to give them the chance. If you’re from New York and got your car repaired in Florida, you get back home and the repair isn’t working right, still have to give them a chance.

2. DISPUTING THINGS FOR THE WRONG REASON
It makes things more difficult and makes it more likely that you will lose. Don’t dispute things as “unauthorized” unless you never gave the merchant your credit card number. Don’t dispute things as “non-receipt” if the merchant did do something but you didn’t get the results you wanted.

1. USING MASTERCARD
With Mastercard (MC) the burden of proof lies on you. If you buy something face-to-face, get home and realize that it’s not as described, you’re out of luck entirely as you had a chance to examine the merchandise. Also, with MC it’s entirely up to you to know the merchant’s cancellation/return policy, even if they don’t disclose it. They didn’t tell you that you couldn’t cancel after three days? Too bad. Seriously, just use a Visa. It’s easier for everyone.

(Photo: frankieleon)

Editor's Note: This article originally appeared on Consumerist.

• In OffShore Insiders
• April 15, 2011
• 6687 Views

The #1 thing NOT to say to an online sportsbook, Internet casino or poker room should a payout problem arise.

Last week we made mention in our BLOG of a couple of things that have gotten players into trouble with their gambling houses. And one player, who admitted that he read the BLOG, did not heed our advice and now has a bigger problem. So, we thought it might be useful to outline the top thing NOT to say to an online sportsbook, Internet casino or poker room should a payout problem arise.

Quite often players in the U.S. have trouble getting their money sent in a timely fashion once a request has been put in and accepted. This can happen at just about any outfit offshore, and usually is a just a one-time issue. However, too many players get frustrated and starting popping off at the next available clerk once a payout does not arrive as planned.

The #1 thing NOT to say is that you are thinking of making a charge back on your credit card deposits. Do not even mention the words ‘charge’ and ‘back’ in the same sentence. The word (or words) ‘chargeback’ instantly will get a player into trouble. Even if you are not planning to do the dirty deed, DO NOT mention a charge back. Unfortunately, this week’s case proves this point.

A player called us because he had not received a bank wire from Bodog, who in the past had been very reliable for him with payouts. The player claimed that the wire did not arrive in his account, while Bodog said it had been delivered. This player went round and round with the sportsbook giant and finally resorted to calling OSGA. Once we got involved the wheels started moving. But unfortunately, these types of problems do take some time to sort out. The player got more and more frustrated. Bodog insisted that it was sent. The player got bank records and letters saying it was not sent to his account. Bodog still insisted it was sent to him. Finally, through our involvement, Bodog’s processing company began to make an extra effort to find the wire.

Meanwhile, the player got more furious and more steamed with each passing day. This week he decided to make the ‘chargeback’ threat. And it was a veiled threat at that. He said, “A lawyer friend suggested that I charge back my deposit,” when he was inquiring if there were any updates with the clerk who was handling his issue. The warning bells went off and within a few hours the players’ account was closed.

Credit card charge backs are such a big problem that the mere utterance of the words makes an offshore outfit react or overreact, and not in a positive way. The problem is that too many chargebacks will cause VISA or MasterCard to drop the processing company and thus the gambling house has to find a new credit card processor. This not only affects the book or casino, it affects all of the players at that place and the industry itself. Many new books are not even taking credit cards and most places have lost the ability to accept credit cards at one time during the last few years. We spoke with one operator who recently launched a new shop in Costa Rica. “I am not taking credit cards at this time, it’s just too much of a headache. Credit cards cause nothing but problems,” we were told.

In addition, the sportsbook or casino has a further problem if a chargeback is made – they never collect that player’s deposit money. Years ago when these problems began to surface regularly we, of course, got involved with many disputes. At the time one operator told us that he could NOT pay the player in question because of the threat of a chargeback. Why? “Because, if I pay the guy and then he charges back, I lose twice.” Puzzled, we inquired further. “I lose twice because (one) the player beat me and got paid and then I lose again because I can’t collect his deposit money.”

In recent years, frustrated players have made charging back on a deposit part of their modus opperandi. As soon as a problem occurs, the easiest thing for a player to do to recoup his money is to charge back. However, players need to be aware that this behavior is now being tracked. There is a list, a big list. And the list is being shared amongst all of the major players in the gambling community. One player was recently shut down within hours after depositing at one of the franchises of Sportsbook.com. Of course, we inquired as to why this player was shut down, with bets pending. Here Sportsbook ran him through the list and found a chargeback from 7 years ago! According to the management at Sportsbook.com, “We caught his account within 2 hours of being created and no actioned all wagers, then credited back the initial deposit.”

Online Casino Heritage Chargeback Card

This is what all of the sportsbooks, casinos and poker rooms are doing now once a player utters ‘charge back’. If a player threatens to reverse his deposits, the gambling house will cut the alleged offender off at the pass and refund all cards used to deposit, closing the account and keeping all monies. This is the knee-jerk reaction that operators have been forced into in the face of mounting losses and repeat offenders. And once a player says ‘charge back’ our hands are pretty much tied in trying to achieve any type of positive resolution.

Online Casino Heritage Chargeback Center

Players should remember that if they are playing a reputable house (rated Elite or Premier) they should not sweat whether or not they are going to be paid; maybe ‘when’, but not ‘if’. Quite often complaint resolution takes far longer than anyone wants and due to the murky world of money processing, missing wires and delayed checks are particularly frustrating. Players should use the chargeback only as a last resort, as a virtual ace-in-the-hole to use after all other means of resolution have been exhausted.

Saying chargeback is like going ‘all in’. It’s a last ditch effort to get the money sitting in the pot. And who goes all in announcing what is in their hand? You would get creamed doing that. And most players who utter the word charge and back together end up getting screwed too.

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