top of page

Understanding Chargebacks and How To Prevent Them


What’s Happening??


Have you ever hustled, treated your fans well, only to see some of the purchases that were made in the past are taken back without explanation? It’s frustrating, isn’t it?


Any consumer can at any time dispute a charge and begin the process known as a chargeback, and that is what this article is about. This right cannot be revoked by us, Fancentro, nor can it be revoked by any authority. To put it simply - by a consumer request their bank “takes” the purchase amount from the recipient account and sends it back to the consumer account. A bank does not require any approval for this transaction nor does a dispute procedure exist to reverse it.


Since chargebacks are inevitable, it is important to understand that they are a part of running a business in our e-commerce world these days whether we want it or not. But, anyway, let’s start from the beginning.


Which Payment Methods Allow Chargebacks?


Among all payment methods available to your fans only the following ones allow chargebacks:

  • SEPA Direct Debit (enabled for 1-Click sales only)

  • Credit Cards (Visa / Mastercard / Discover Card / JCBcard)


When it comes to credit cards, things may not really be as bad as you think - currently the chargeback rate on our platform for credit cards is <1% on average, which means that out of 100 sales potentially 1 sale only results in a chargeback.


But when it comes to SEPA, not everything in the garden is rosy. 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. A chargeback is possible up to eight weeks after the transaction without supplying any justification and on a no-questions-asked basis! A fan can automatically get their money back with just one click of a button in their banking application since there is no dispute resolution process in existence.


This payment method on our platform is enabled for 1-Click sales only, so SEPA 1-clicks are only enabled for those fans that made a 'safe' payment method transaction previously.


Why do we still use SEPA DD for 1-Click sales when SEPA DD has such a high chargeback rate?


SEPA is one of the most popular payment methods in the EU and significantly increases overall sales coming from European countries. Despite risks associated with SEPA, our analysis shows that even when 10% of SEPA transactions result in chargebacks, the model's earnings are at least 18% higher than it would have been without 1-Clicks via SEPA.


What Does It Mean For You?


It means that even if you lose funds through SEPA chargebacks, you gain more anyway. However, if you do not feel comfortable offering services with SEPA DD 1-Clicks enabled on your page, we can disable SEPA DD as a method for you entirely.


The only thing you need to understand when making a decision, which is totally up to you, is that you will lose more than you could potentially lose through chargebacks with SEPA DD enabled.


How Can We Reduce Chargebacks?


You (Influencer)


  • Always communicate openly and clearly with your fans

  • No false promises - always deliver what fans pay for


Us (Fancentro)


  • We actively go after fans who chargeback. Not only are they instantly blocked from making any other purchases through CentroBill, but depending on their location, we may send debt collection after them to recover the money.

  • Intelligent security - our system tries to identify cases of fraud before they happen. We are often able to preemptively stop chargebacks and in some cases, increase the fan’s satisfaction and spending.



Fancentro and CentroBill work tirelessly to ensure that you get all the money you’ve worked so hard for. Additionally, we always cover the chargeback fees applied on top of the initial amount, and those fees are often higher than the original chargebacked amount. We 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.




Want to stay on top of tips, trends, and the latest tools? It’s as easy as 1-2-3!


1. Follow our socials @fancentrotribe for new posts, contests, money-making tips, and more!

2. Get the hottest news of every month by signing up for our newsletter!

3. Contact a success coach at success@fancentro.com for one-on-one advice from an expert!

Comments


WEBINARS

Continue your adult education with free educational webinars, delivered by industry experts every month.

UPCOMING WEBINARS

  • Wed, Nov 09
    Zoom Meeting
    Nov 09, 2022, 1:00 PM AST
    Zoom Meeting
    In this session we'll cover all the features on the platform and help you with any questions that you might have. All models are welcome!
  • Wed, Sep 28
    Zoom Meeting
    Sep 28, 2022, 1:00 PM ADT
    Zoom Meeting
    In this session we'll cover all the features on the platform and help you with any questions that you might have. All models are welcome!
  • Wed, Jun 01
    Zoom Meeting
    Jun 01, 2022, 1:00 PM ADT
    Zoom Meeting
    In this session we'll cover all the features on the platform and help you with any questions that you might have. All models are welcome!
  • Wed, May 04
    Zoom Meeting
    May 04, 2022, 1:00 PM ADT
    Zoom Meeting
    In this session we'll cover all the features on the platform and help you with any questions that you might have. All models are welcome!
  • Wed, Apr 06
    Zoom Meeting
    Apr 06, 2022, 1:00 PM ADT
    Zoom Meeting
    In this session we'll cover all the features on the platform and help you with any questions that you might have. All models are welcome!
  • Thu, Mar 10
    Zoom Meeting
    Mar 10, 2022, 10:00 AM
    Zoom Meeting
    In this session we'll cover all the features on the platform and help you with any questions that you might have. All models are welcome!
  • Wed, Mar 09
    Zoom Webinar (Language: English)
    Mar 09, 2022, 11:00 AM PST
    Zoom Webinar (Language: English)
    Taxes can be confusing and intimidating, but it doesn't have to be that way. As an entrepreneur in the digital space tax compliance is likely the last thing on your mind. In this judgement-free webinar, Katherine Studley breaks down the tax implications for adult content creators step-by-step.
  • Wed, Feb 16
    Zoom Meeting
    Feb 16, 2022, 12:00 PM GMT-5
    Zoom Meeting
    En esta sesión vamos a ver todas las funcionalidades de la plataforma y ayudaros con las dudas y necesidades que tenga cada modelo.
  • Thu, Jan 27
    Zoom Meeting
    Jan 27, 2022, 1:00 PM
    Zoom Meeting
    In this session we'll cover all the features on the platform and help you with any questions that you might have. All models are welcome!
  • Wed, Jan 12
    Zoom Meeting
    Jan 12, 2022, 1:00 PM
    Zoom Meeting
    In this session we'll cover all the features on the platform and help you with any questions that you might have. All models are welcome!
  • Tue, Dec 21
    Zoom Meeting
    Dec 21, 2021, 1:00 PM EST
    Zoom Meeting
    In this session we'll cover all the features on the platform and help you with any questions that you might have. All models are welcome!
  • Thu, Dec 02
    Zoom Meeting
    Dec 02, 2021, 11:00 AM GMT-5
    Zoom Meeting
    En esta sesión vamos a ver todas las funcionalidades de la plataforma y ayudaros con las dudas y necesidades que tenga cada modelo.
  • Wed, Dec 01
    Zoom Meeting
    Dec 01, 2021, 1:00 PM EST
    Zoom Meeting
    In this session we'll cover all the features on the platform and help you with any questions that you might have. All models are welcome!
  • Thu, Nov 18
    Zoom Meeting
    Nov 18, 2021, 11:00 AM – 12:00 PM
    Zoom Meeting
    En esta sesión vamos a ver todas las funcionalidades de la plataforma y ayudaros con las dudas y necesidades que tenga cada modelo.
  • Wed, Nov 17
    Zoom Meeting
    Nov 17, 2021, 1:00 PM – 2:00 PM EST
    Zoom Meeting
    In this session we'll cover all the features on the platform and help you with any questions that you might have. All models are welcome!
  • Tue, Nov 16
    Zoom Webinar (Language: English)
    Nov 16, 2021, 2:00 PM EST
    Zoom Webinar (Language: English)
    Creators are more powerful than ever before, this is why it's so important that we take the time to question the moral principles in our field.
  • Tue, Nov 16
    Zoom Конференция
    Nov 16, 2021, 4:00 PM – 5:00 PM
    Zoom Конференция
    На этой встрече мы расскажем про все возможности платформы и ответим на все Ваши вопросы. Все модели приветствуются!
  • Thu, Nov 04
    Zoom Meeting
    Nov 04, 2021, 11:00 AM – 12:30 PM GMT-5
    Zoom Meeting
    En esta sesión vamos a ver todas las funcionalidades de la plataforma y ayudaros con las dudas y necesidades que tenga cada modelo.
bottom of page