Resorts Digital Gaming is close to completing the integration of technology from anti-fraud specialist GeoComply, a move that will assist Resorts in mitigating issues associated with credit card chargebacks.
Under the partnership, Resorts will become the first gaming operator to launch the GeoComply Chargeback Integrator (GCI), a geolocation and anti-fraud solution designed by Vancouver-based GeoComply. The partnership comes as the gaming industry is challenged to find methods for expediting the process of responding to credit card chargebacks.
Credit card chargebacks typically occur during customer disputes which result in a charge that is returned to the customer. As casinos and sportsbooks steadily turn to digitalization in payment processing, the necessity for automating the chargeback process has grown exponentially.
New Jersey operator Resorts Digital Gaming is set to become the first operator to launch with @GeoComply's Chargeback Integrator (GCI) to deal with credit card chargebacks 💳.
Read more here 👉 https://t.co/ozNW4v0W8U pic.twitter.com/HL9MDjfvhp
— GeoComply (@GeoComply) October 11, 2022
“We are delighted to pioneer this industry-first solution and do our bit to raise the bar ever higher against fraud,” Resorts Digital CEO Ed Andrewes said in a statement. “Working with GCI is a positive step in the right direction and will automate what is often a too manual and time-consuming process and, of course, save us a significant amount of money.”
The technology combines GeoComply’s compliance-grade geolocation data with a direct integration for chargeback submissions through a portal from Accertify, GeoComply noted. In turn, the integration is automated into the merchant’s payment network.
Two sportsbook operators, DraftKings and FOX Bet NJ, gained market access in New Jersey through a licensing agreement with Resorts Digital.
The automation process
Each time a customer disputes a transaction, the GCI technology will automatically produce a statement categorized by GeoComply as a “compelling evidence report.” The report has the capability to pinpoint the exact device used to make a bet and the physical location of where the bet is placed. As it relates to sports betting, geolocation volumes recorded by GeoComply rose 71.5% in the opening weekend of the NFL season to 103.1 million checks, up from 60.1 million during the same week in 2021.
Hypothetically, a New Jersey customer could experience a breach that impacts his digital wallet while the customer is located in Atlantic City. The breach, perpetrated by a cyber criminal, may occur thousands of miles away in an out-of-state city. If the customer disputes a fraudulent charge of $1,000 for a gaming transaction, it appears that the technology can be used as a tool for facilitating the chargeback process.
Chargeback automation software can assist companies in deciding whether to fight a chargeback, cancel future transactions after a dispute, and potentially block fraudsters from engaging in future purchases, among other uses. Ultimately, automation helps an operator cut down on the time it takes to respond to chargebacks through a manual review of nearly every instance when a potential case occurs.
They say an ounce of prevention is worth a pound of cure. That’s especially true when it comes to financial wellness.💊
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Other New Jersey sportsbook operators are mulling the implementation of sophisticated technology for digital payment acceptance. Sporttrade, a New Jersey newcomer, is hoping to develop a risk-based approach on fund acceptance from certain customers, CEO Alex Kane told NJ Online Gambling last week. More specifically, Kane would like to have a process in place for responding efficiently when a customer has a chargeback of $1,000 or more.
It is estimated that digital card-not-present fraud will amount to $130 billion by 2023. Of that amount, only 18% of merchants who dispute those chargebacks are successful, GeoComply said, citing data from Juniper Research.
“Chargebacks have grown exponentially over the past year and are eating into operators’ profit margins,” said Mahmoud El Shennawy, who serves as director of business development at GeoComply. “GCI will boost the bottom line and improve operators’ relationships with credit card companies.”
Photo: Resorts Digital
