G2A Merchants - Total Charge Backs Since The TOS Switch?

So far I had 4. Won 3.

1 pending.

All PayPal.

 

so far have 2 pending
another 10 coming soon since this guy have 12 orders on my site
all credit card

 

48 total.
27 won, rest lost.
Stopped taking Paypal and creditcard through G2A.
Their fraud filters are a laughing stock as they don't blacklist Payer ID's or Paypal emails.
A person could file a chargeback, win or lose it and literally make a payment with another G2A account but the same Paypal account and pull another chargeback. Repeating this process till the end of time.

 

17 Total.
7 Won.
5 Pending.
5 Lost.

1 Credit card rest PayPal

 

You do realize that your G2A will get closed right lol? Credit card chargebacks cost companies around $100 each in labor and other fees, that means you cost G2A $1200 over nothing.

Goodluck explaining that when your site gets shutdown and disabled to your account manager.

Also, Kaii a 58% win-rate on fraud? Really? Jesus that's god awful.

That's rough Ruben, 30% loss rate with 5 pending.

You guys need to hire someone dedicated to fraud apparently if your getting your ass handed to you that bad, we have had two issues since May and won both.

HMU if u want to pay me to help with your fraud cheaper to pay me well to take care of it than it is with your loss rates.

p.s- I've posted proof of having over 260 disputes/chargebacks over my 3 years pre g2a(under a 1% overall fraud rate) and won 239 of them, currently sitting at a 91.9% success rate and yes I am serious about it, I've sent letters of demand, made phone calls, called their actual banks to report them for fraud, etc.

2 issues between the companies, 0 account recovery's or issues with my accounts site, need I say more ?

 

This mean you’re liable for chargebacks now?

 

June 1st everyone became liable for g2a disputes/chargebacks, Some merchants it started May 1st.

Just looking at the #'s so far it looks like merchants are getting bent so far.

Using Kaii's own graphs since last year and assuming sales went up a bit during the year, he's processing give or take $80,000-$100,000 a month in sales.

Avg margin of 15% means roughly $8000-$15000 a month in income.

He likely became responsible for chargebacks/disputes June 1st, meaning 1 1/2 months ago

Imply that the avg chargeback is $100 in our industry, 48 total with 27 wins, 21 losses.

Implying that fraud was on roughly $130,000 in sales @ 15% margins

$19,500 profit on 15% on those sales, of that we can reasonably say $4800 of that was at risk for fraud, $2700 was won, $2100 was lost.

24.6% of his profit is at risk to fraud.
9.28% of his profit is going to cover just g2a fraud apparently that he loses.

$19.5k - $2100 is $17,400 over 45 days.

$387/day but that's NOT factoring in ads, bans, workers, other fraud.

The pb ad alone he buys is $50/day and I can only speculate what other expenses he has.

It's no wonder he stopped taking it via G2A, His margin and profit are under serious pressure lol. Even if I am conservative in estimates and speculate he spends $100 a day on ads across the board, loses $20 a day in bans(likely much higher), pays his employees $50 a day in labor, and if we throw in a low estimate of $10/day in misc expenses, ur talking roughly 50% of that $387 is going to costs, leaving him $180 profit/day give or take.

The above numbers are running off the assumption he's doing $900k-$1.1M in sales per year, Im aware Kaii posted a graph of doing $1.3M but margins are shrinking and its costing more and more to stay competitive with the big monopoly formations of Arcus and Bogla and other sites, I adjusted his sales down 10-15% roughly because I suspect they will take a hit as the year goes on.

It essentially would be worthwhile to hire someone and pay them as much as $2,500 a month for Kaii just to combat fraud alone.

(By the way, I'm not picking on Kaii, I just have a decent idea of his scale due to the stuff hes posted).

That's ALOT of your profits at risk for fraud tbh, 25% is the steepest % I've heard, if Kaii is the standard example in the industry than gold sites are likely struggling pretty bad right now.

Keep in mind their paying g2as ridiculous 6.75% fee to (3.29% processing, 2.49% conversion, 1% withdraw) that I didn't even calculate into this.

 

So if they changed their TOS so you’re responsible for fraud, why even use G2A? That was the whole reasoning for switching from PayPal to G2A in the first place

 

Most of us are perm limited on paypal, g2a was a way for us to take it.

 

Good post ^
The only people left selling gold are the ones forced too like Kai, Arcus/bogla Ariba etc. That's their income and way of life, what else to do? Bogla obviously did the right thing by leaving and investing profits elsewhere.

Luckily I always treated my websites as incredibly high interest savings accounts, I haven't spent any profit in 3 years

I suggest everyone to treat business's like these as savings accounts, not your actual job. Don't depend on this to pay your bills, you will be burned eventually.

 

You know, If the sites only sold for BTC/ETH/XRP on coinbase, everyone would use it. Would force everyone too get coinbase and use BTC only.

 

I don't know if i quite agree with that, i sold to users in the past on different platforms at higher prices through pp and other means and had mentioned id give them a significant discount if they switched to btc/eth and many still just chose not to. also a lot of people just dont understand how the cryptocurrencies work so they dont want to have to sign up for another site and etc etc.

 

Not everyone can use coinbase. And there have been accounts that have been suspended on coinbase if it looked like you were using it to gamble. Something along those lines, a large gold shop got their coinbase account closed. XRP isn't available on coinbase, is it? And what's the point of using coinbase only, is it to avoid fees? I haven't been in the market for a year so I may be a little outdated.

 

People use coinbase so they cant refund. Theres other ones out there. Uphold / Localbitcoins / bitfinex. Yeh, there is no xrp on coinbase. People can also use TUSD and transfer it to ETH on demand in a secure way.

 

@Kaii @Ruben Eason @Divine @RSGoldstop

Care to update guys?

 

No.

 

Ty for taking the time to type no. It's been a bloodbath eh.

 

I already shared my sythe banner analytics in SF - I used up my generosity with this community already today.

Ask tomorrow lul.

 

I actually will be ready.

 

Disable VPN/ and get your staff to look for vps/proxy's, would be no more shady people (hence no more chargebacks)