Many players (often residents of the CIS countries) are unaware that in some cases they can return the payment made in the casino through a bank card VISA or MasterCard using the Chargeback procedure. In the West, this has long been a common practice – and not only in e-commerce, but also in the online casino industry. It is a real problem for a number of gambling sites.
Some players are trying to pull off a fairly straightforward scheme: pay a certain amount of money to an online casino (for example $100) and if he loses the money back to the casino – to request a chargeback (allegedly, the payment was made without his knowledge). Does it work or not?
What is Chargeback
Chargeback in the casino is a procedure to return the payment made by the issuing bank (card issuer) from the account of the receiving bank (acquirer). The issuing bank acts in the interests of the client. After that the latter has to provide proof of its rightness. But this is the theory.
In practice, the customer submits a written application detailing the situation. Let’s say, he found a suspicious purchase from a card (which did not commit), attaches the necessary screenshots, indicates the date and gives other facts.
All these documents are sent to the issuing bank. That, in turn, sends the complaint to the acquiring bank. In case of refusal, the complaint is sent to the international payment system (IPS) – i.e. VISA or MasterCard.
In many cases, the bank and the payment system take the side of the customer if there is strong evidence. If the request is false or fraudulent the bank, the payment system and the website (store, online casino, etc.) may apply serious sanctions. An attempt to return the money lost at the casino by means of chargeback is a fraudulent action on the part of the cardholder.
Features of chargeback
There can be many reasons for chargeback, and each of them has its own unique code. By the way, it is advisable to specify it when applying to the issuing bank.
For example, if the transaction was conducted by a fraudster (and not the cardholder), in this case the code is 4863 for MasterCard and 81 for Visa.
Another important point is the application deadline. The official MasterCard and Visa rules say that the chargeback must be activated no later than 120 and 180 days, respectively, from the date of the transaction.
Chargeback in online casinos: reality or myth
The main problem with online casinos is the legal framework. As a rule, online gambling is illegal and, consequently, no one should play at the casino at all in theory. And here a reasonable question arises: does it even make sense to do a chargeback and try to get back the money lost at the casino? Wouldn’t a player get an instant rejection just because a payment was made in favor of an online casino?
It all depends on whether the casino is licensed and, if so, which bank accepts deposits. It could be any international bank that operates absolutely legally – for example, in Cyprus, Malta or wherever. In this case, in the eyes of the bank, the transaction will be legal. And most NetEnt casinos do exactly that.
But in the case of a number of “Vulkan” and similar institutions are not so straightforward. They operate illegally or semi-legally. Chargeback in this situation is extremely problematic.
Lied? Receive sanctions
You have to take responsibility for everything you do. Every bank, every payment system, every company is a commercial enterprise. It will protect its main asset, its profits, at any cost. When you make a chargeback, you are taking an attack on the profits of the business.
In the case of online casinos, it’s even stricter. Gambling establishments are constantly faced with all kinds of fraud and know exactly how to respond to it. Be sure to read the terms and conditions of the online casino. There should be a paragraph describing the possible consequences in case of any fraudulent actions.
Often the casino specifies a separate clause: “Attempting to make refunds” . This means that such cases occur regularly.
What are the consequences? Read on:
- “The company reserves the right to block the user’s account and stop all payments. Such a decision may be made at the sole discretion of the company representatives. Players will not be informed of the reasons for such actions. Also, the company reserves the right to inform the appropriate authorities about the fraudulent actions of the player.
- The player can simply lose all the money in his account, and his data is likely to be included in the “black” list. And after all, licensed institutions often ask for personal data. In short, the consequences can be serious. The card itself can also be blocked, and the bank will refuse to provide services to such a client.
But this is only one side of the coin. The second side is even worse:
- If you file a claim for the return of lost money in the casino by means of a chargeback to the issuing bank, a criminal case may be opened. The police will investigate this fact, and if it turns out that there was no “fake” payment, that the IP address of the transaction matches your own (or some other facts come to light) – the consequences will be even more serious. I doubt they will put you in prison, but they may impose administrative responsibility – a fine or something worse.
Get money back from the casino
In the West, it’s much easier with chargebacks, especially in the U.S. No one will bother especially with it – neither bank, VISA, nor MasterCard. If the amount is small, they just return the money and that’s it. No one needs a headache. If there are many such cases or the amount begins to grow – then all organizations involved in this process will be much more interesting to understand what is happening.
But then again, with online casinos, it’s not that simple. In America, Internet gambling is completely banned, even poker (except for a few states). So it is not quite clear how banks will react to return transactions of this type. But if you don’t talk about it, there shouldn’t be any problems.
In the UK, too, with chargebacks all is smooth. It’s more complicated than in the U.S., but it’s still a well-established scheme.
In developed countries, chargebacks are commonplace, and most companies have a special type of expense for them. A kind of interest on risks. When opening an online casino, the operator already lays down a percentage of players who will try to get back the money lost in the casino with the help of chargeback.