As an Agency managing creators on Fancentro, you may have experienced the frustration of chargebacks - when purchases are reversed without prior notice. Chargebacks are a consumer right that neither Fancentro nor any authority can revoke. Essentially, a consumer can request their bank to reverse a transaction, and the bank will comply without needing approval or a dispute process.
Certain payment methods are more susceptible to chargebacks:
SEPA Direct Debit (only for 1-Click sales)
Credit Cards (Visa, Mastercard, Discovercard, JCBcard)
While Credit Card chargebacks are relatively low on our platform (less than 1% on average), SEPA Direct Debit presents a higher risk. SEPA (Single Euro Payments Area) Direct Debit (SEPA DD) is a bank account-based payment method available across the Eurozone, which can be used for both e-commerce and recurring payments and is a real pain in the ass chargeback-wise: SEPA allows chargebacks post-transaction with no justification, leading to an increased chargeback rate. A fan can automatically get their money back with just 1 click of a button in their banking application since there is no dispute resolution process in existence.
SEPA is exclusively available for 1-Click sales, and this option is activated only for fans who have previously completed transactions using a verified 'safe' payment method.
Why do we still use SEPA DD for 1-Click sales when SEPA DD has such a high chargeback rate?
Despite its high chargeback risk, SEPA is popular in the EU and boosts overall European sales. Our analysis indicates that even with a 10% chargeback rate, earnings via SEPA 1-Click sales are still significantly higher (approx. 18%).
What does it mean for you?
It means that even if you lose funds through SEPA chargebacks, you gain more anyway, this is why we recommend having this option active. Agencies can enable or disable SEPA DD 1-Clicks through the Creator admin panel based on their comfort level.
Reducing Chargeback Incidences
For Creators:
Maintain clear and honest communication with fans.
Fulfill all promises and deliver what is paid for.
For Fancentro:
We actively pursue fans who initiate chargebacks, including blocking them from further purchases and potentially employing debt collection measures.
Our system employs intelligent security measures to preempt fraud and reduce chargebacks, often enhancing fan satisfaction and spending.
Fancentro and CentroBill are committed to safeguarding your earnings. We cover all chargeback fees, which are often higher than the chargeback amount itself. We do collect about 20% of SEPA DD chargebacks, which is a pretty healthy number. Of course, any chargebacks that are collected are 100% put back into your account.