VIP Leaves the US Internet Gambling Market Due to Chargebacks
In an email to affiliates VIP.com has announced that effective immediately they will no longer be accepting new US players. The same holds true for Canadian players. The actions are being taken as a result of a large number of chargebacks the company has received from US and Canadian players.
The chargebacks are being caused by the players using depositing methods not as reputable as Neteller. Since Neteller left the scene there have been few depositing options available. Many US and Canadian players were finding that they were suddenly able to deposit simply by using their credit cards, which the Internet gambling world was enthused about at first. However, in the past three weeks the amount of chargebacks from the players who used these depositing methods has been more than VIP could handle.
Other companies, like the sister site of VIP, Casino Coins, who operate SuperSlots, English Harbour, and Caribbean Gold, have also reported a very large number of chargebacks. It is not known whether they will follow VIP’s lead and leave the US and Canadian industry.
Partial eMail Transcript –
As you are probably aware, recent changes in the e-commerce landscape have caused many online companies, like our merchants, to adapt their offerings in this fast paced industry.
As one of our preferred partners, I wanted to update you about recent changes with our merchants.
US Customers Effective immediately, all VIP Profits merchants will no longer accept new customers from the United States. Long standing premium customers have contributed to our success over the years, and we intend to increase our service commitment to them – exclusive focus on preferred customers.
Canadian Customers VIP Profits merchants will no longer accept deposits from Canadian players effective immediately. Canadian customers will maintain access to their account until April 1, 2007. Any current balance in the account may continue to be used until that date, at which point any remaining funds will be refunded to the player and their account will be closed.
Increased Charge Back Rates The international banking environment is fast changing, and merchants are experiencing increasing charge back and return rates. Affiliates should be aware of this as you monitor client activity moving forward.
Our merchants continue to be global leaders in online gaming, and look forward to working with you to recruit new clients outside of North America in the future.