Matched betting is increasingly popular and totally legal, but it is still officially a form of gambling. One thought that will cross everyone’s mind when dealing with a bookie is, “Will this eventually damage my credit rating?”

• Online Gambling Affect Credit Rating System
• Online Gambling Affect Credit Rating Chart

Online gambling affects your credit rating if you use multiple credit cards or money that you don’t have to gamble. But who is most at risk of financial problems while gambling online? We explore here and invite your questions about credit scores and online gambling here. If you’re applying for a loan, mortgage or simply want to keep your credit rating high, you may be concerned that matched betting will have a negative effect and that your credit score may be harmed due to matched betting.

If this is your first time coming learning about matched betting, be sure to check out this matched betting for beginners post.

Matched betting gives the player a special edge: because many online bookmakers offer a free signup bonus in the form of a free bet, a new customer can sign up at the website, place a bet, lay a bet against it on a betting exchange with the free money, and win either way.

Of course, the free offer can only be done once on each website, which means you will find yourself signing up to a lot of different bookies.

I can understand why you would be worried about how that looks on your credit rating.

Let me put your mind at ease. Matched betting does not affect your credit rating.

How To Check Your Credit Rating

If you’re still worried, you can check your credit rating through an agency such as Experian, which offers a 30-day free trial. You can get proof for yourself whether your credit is affected by participating in matched betting.

But I’ll save you some time and reassure you that it is not affected! There will be no negative reports on your credit because matched betting is totally legal and does not involve credit.

Do Any Bookies Carry Out Credit Checks?

Yes, some bookies will do credit checks on their customers, but this is not out of the ordinary– after all, they are entering into a business transaction with you, and just want to make sure your account remains in good standing with their business.

A spokesman from Experian said in this article from The Guardian:

“It won’t appear on the credit reference radar. You can have as many gaming accounts as you want.”

That’s a pretty conclusive answer. The number of accounts you have with different bookies will not damage your credit score.

Still Worried? Ask Other Matched Bettors

If you are still worried you can always sign up to a community of matched bettors and ask them what their experiences are. The most popular one is Oddsmonkey. With over 250,000 posts in their forum, all from other matched bettors.

Check out my Oddsmonkey review for 2017.

Are There Any Other Risks?

The biggest risk with matched betting is human error or developing an addictive habit and finding yourself straying from the system and not being able to stop when you know you should. If you feel you aren’t in control, contact GamCare for help.

At first glance, credit card chargebacks appear to be just like refunds. However, there is one very distinct difference between a chargeback and a refund. With a chargeback, the customer contacts the credit card company or bank for a refund, rather than the business they made the purchase from. While chargebacks are designed to protect consumers from unauthorized transactions, it’s important to understand chargebacks and their effect on credit score so you can avoid any detrimental impact to your business.

Do Chargebacks Hurt Your Business Credit Profile?

Fortunately, chargebacks will not have a negative impact on your business credit score. But, if you get enough of them, they can affect your merchant account. This can lead to higher processing fees and/or the loss of merchant accounts.

How Does a Chargeback Work?

There are a number of steps involved in the chargeback process. Here’s a brief overview of it.

1. Customer Disputes the Purchase

If a customer doesn’t receive an item, determines an item or service is not as described, or sees an unauthorized transaction, they may contact the credit card company to dispute it.

2. Issuer Reviews the Chargeback

Once the issuer receives the chargeback request, they’ll determine whether it’s invalid or valid. If it’s invalid, the process will end and the customer will be notified. However, if it is valid, the process will continue.

3. Customer Gets Reimbursed

The issuer will process the valid chargeback and provide the customer with a credit for the amount they disputed. When this happens, the business’s merchant account is debited for a credit charge and they’re on the hook for a chargeback fee that ranges from $15 to $100.

4. Merchant Receives the Chargeback

After the customer gets reimbursed, the merchant will find out through their merchant account processor. They’ll receive an email notification or physical letter in the mail. The notification will include directions on how to respond to the dispute.

5. Merchant Responds and Appeals

The merchant has the option to submit a response and appeal the chargeback. If they’re unsure of what a chargeback is, or believe the chargeback isn’t worth much, there’s a good chance they won’t respond and simply accept the chargeback.

If they do respond, they’ll have to prove they provided the product or service in questions and may wait months for the chargeback to resolve. Sometimes, the process of appealing a chargeback can cost more than the value of the original product or service.

How Do Chargebacks Hurt Your Business?

Since the dispute process is so easy, you can’t ignore chargebacks and their effect on credit score can have—even if it is indirect. Don’t be surprised if customers request chargebacks, even when there hasn’t been any fraudulent activity. They may do so because they weren’t satisfied with your product or service or believe it was wrongly represented online. Or, they simply didn’t recognize the charge on their credit card statement.

If you’re a business owner, it’s important to take chargebacks very seriously. Here’s why: When you’re hit with a chargeback, you’ll miss out on more than just the dollars that were disputed. You’ll also lose money on chargeback fees as well as all the time and money you spend selling, packaging, and delivering the product.

In the event your chargeback ratio (total chargebacks divided by total sales transaction) reaches a certain point, you’ll face one of these consequences: higher processing fees or a lost merchant account. If you completely lose your merchant account, you’ll have to find a processor who accepts “high risk” merchants.

Pro tip: What you don’t know can kill your business

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Preventing Chargebacks

While you may not be able to completely prevent them, there are several things you can do to reduce chargebacks. Here are several ideas.

Excellent Customer Service

In today’s increasingly competitive marketplace, the customer truly is king. So if you treat every new and loyal customer well, they’re less likely to initiate a chargeback. If you find out a customer is dissatisfied for any reason, reach out to them promptly to resolve the issue.

A Customer Centric Return Policy

When it comes to your return policy, try to be as flexible and lenient as you can. Also, make sure it’s clearly outlined and easy for just about any customer to find and understand. Remember that a return is far cheaper and more convenient than a chargeback.

Offer Live Chat

A live chat can give customers the quick answers they need to avoid chargebacks. For instance, if they can log on to your website, chat with a representative, and find out when their package will arrive, they may refrain from pursuing a chargeback.

Detailed and Accurate Product Descriptions

If you’re an online retailer, make it a priority to write highly detailed and accurate product descriptions. This way your customers will know exactly what they’re buying. Good descriptions can eliminate surprises and the temptation to pursue chargebacks.

Realistic Expectations of the Product/Service Results

When you sell your products and/or services, don’t make promises you can’t keep. Set realistic expectations with your customers so they know exactly what they’ll get if they invest in your offerings.

Easy to Find Shipping/Tracking Information

While some customers won’t mind waiting for your products, others will want to receive them as soon as possible. Since those who don’t want to wait may file chargebacks, it is in your best interest to provide them with shipping and tracking information. This information can keep them up-to-date with the status of their order and reduce their chances of initiating a chargeback.

Online Gambling Affect Credit Rating System

Follow Up on Irregular Orders

If you notice that a customer who usually orders the same items each month places an irregular order, follow up with them. Following up can allow you to ensure there was no mistake on your customer’s behalf and prevent a chargeback as a result.

Online Gambling Affect Credit Rating Chart

Document Conversations with Customers

Keep accurate records of your customers’ credit card transaction amounts and dates as well as their authorization details. You should also document any conversations you have with customers and store any receipts or contracts they signed. Documentation can allow you to win a dispute against a customer who is trying to take advantage of the chargeback system or forgot they made a purchase.

Use a Clear Descriptor

If your business name is “Mike’s Bike Shop,” that is the name that should appear on each customer’s credit card statement. A parent name or different name that customers don’t recognize can put you at high risk for chargebacks. Your payment descriptor should be very clear and easily recognizable by your customers.