CHARGEBACKS911


Eliminating chargeback fraud in online gaming


Eric Deraspe, CCO at Chargebacks911 spoke to GIO about what the company is doing to mitigate chargeback risk


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ounded in 2011, Chargebacks911 is the first global company fully dedicated to mitigating chargeback risk and eliminating chargeback fraud. As industry-leading innovators, Chargebacks911 is credited with developing effective strategies for helping businesses manage disputes and reduce loss. The platform provides a centralised system for aggregating chargebacks and dispute related data to automate transmission files across multiple providers. Chargebacks911 offers a fully agnostic, single integration point. Eric Deraspe has 20 years of dedicated experience across the financial services sector having worked with leading corporations including TD Bank, CIBC, Goldman Sachs, American Express, Mastercard and Western Union. As chief commercial officer at Chargebacks911, Deraspe is responsible


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for ensuring Chargebacks911’s financial institutions operations have the appropriate tools, processes, and partnerships in place to accelerate company growth and innovation. “We have developed the most effective strategies for minimising the negative impact of chargebacks for any business that makes transactions across many sectors, including iGaming. Any person or business that accepts payments must ensure they are protected against chargeback fraud and remediation issues, which is where we can step in and offer personalised support, helping businesses maximise revenue and reduce loss,” he says.


CHARGEBACK FRAUD AND ONLINE GAMING


Online gaming attracts millions of new players each year. As a result, pay-to-play games have become a massive sector in the global digital economy. According to Juniper Research, total online wagers will reach nearly $1 trillion globally by 2023. This translates to almost 1% of projected global GDP. and as the market grows, so do the associated risks of fraud. The growth in digital payments, due to the boom in eCommerce and increased fraud regulations, are expected to further add to the size and complexity of chargebacks that businesses face in the future. Deraspe says “Not all perpetrators are committed cybercriminals. If a user decides to play for a few minutes and before they realise it, has managed to spend far more money than they intended, the player may then decide to call the bank and file a chargeback, claiming that the charges were unauthorised. This is an example of first party (or “friendly”) fraud, and it’s a growing issue in the online gaming space.”


WHAT CAN OPERATORS DO? Deraspe says “Businesses can recover some of the


We have developed the most effective strategies for minimising the negative impact of chargebacks for any business that makes transactions across many sectors, including iGaming


10 SEPTEMBER 2022 GIO


money lost to friendly fraud through the representment process. This requires in-depth knowledge of card scheme policies and regulations, although it must be completed on a very short timeline. As an operator, you have to acquire new players and keep them entertained and satisfied, but also mitigate risk posed by fraud and gaming chargebacks. Managing this risk is a full-time job in itself.”


“Authenticating users and providing a quality customer experience are vital to preventing fraud and chargeback abuse. However, that’s easier said


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