Event Operations

How TicketLeap Defends Against Chargebacks

Reading time: 7 min

If you've hosted an event before, you've probably experienced one unavoidable challenge: chargebacks. They can be time-consuming and a little frustrating to deal with, which is why you need someone on your side to fight these chargebacks for you and help keep more money in your pocket! Read on to learn everything you need to know about chargebacks, TicketLeap's efforts to win them for you, and some strategies to mitigate them from the get-go.

What are chargebacks?

A chargeback occurs when a buyer disputes a charge to their account directly with their credit card company. In regards to your event, ticket buyers would typically claim that they didn't authorise the purchase, or that they didn't receive the experience they were promised. While some chargebacks are filed shortly following a transaction, they can be filed up to four months after a purchase! The most common types of chargeback disputes in the events industry include:

1. Fraudulent purchases

The cardholder claims someone stole their credit card and used it to buy tickets. Bigger attractions like festivals and concerts tend to face more of this activity.

2. Services not rendered

The cardholder claims they bought tickets but never redeemed them or attended your event.

3. Duplicate processing

The cardholder claims they were charged twice for the same order of tickets or merchandise.

4. Credit not processed

The cardholder claims they cancelled or returned their purchased tickets but have not yet received a refund.

5. Not as described or defective

The cardholder claims the goods/services they received didn't match your event's description.

How TicketLeap addresses every chargeback claim

Unlike other ticketing companies, TicketLeap has a full-time risk manager whose main responsibility is to manage the chargeback process, address every single chargeback, and provide as much evidence as possible for the best chance at winning each case. Because of these efforts, we have successfully won over 50% of chargeback claims filed – nearly 20% above the industry average win rate of 32%! So rest assured, your events are in good hands with us.

From initial claim to seeing the money back in your account, disputing a chargeback can take between 45 to 90 days. After the cardholder initially contacts their bank, we (your ticketing provider) receive a notice that the dispute has been filed and have 30 days to respond. We first determine if the filer has a legitimate claim. For example, they may have had their card stolen and deserve a refund. If the claim doesn't seem legitimate, however, our team notifies the event organizer about each chargeback and provides the buyer's name, the dispute reason, and their order information. Organisers are then encouraged to reach out to buyers directly if they feel the chargeback has been filed in error. 

If the event organiser and customer aren't able to come to an agreement, we'll move forward with disputing the chargeback by putting a case together to fight it. During this process, we must confirm the filer actually bought tickets and attended the event, and send proof that demonstrates the dispute doesn't have a strong enough case to merit a chargeback. This can be anything from scan logs with timestamps, to event photos customers may have posted on social media. Once the evidence is submitted to the bank, the case will remain open for approximately 45 days before a ruling happens. If the case is won, TicketLeap (and you!) retains the revenue. If the case is lost, the funds are withdrawn from TicketLeap and given back to the cardholder. 

How event organisers can prevent chargebacks

While TicketLeap works around the clock to help you prevent chargebacks, there's also a few actions you can take to stop them in their tracks. 

1. Have buyers sign your refund policy

Asking your ticket buyers to sign an event waiver and refund policy ensures they understand how you handle refunds and what to expect from your event. This policy gives you clear evidence to challenge any chargebacks in the future.

2. Scan tickets at the gate

Redeeming tickets at the door provides you with key evidence to help fight fraud, as it shows who entered your event and who didn't. Later, you can pull up any attendee from your scan logs if they claim they never attended.

3. Require ID and credit card verification

Verify your ticket buyers' identities by requiring them to show the credit card they used to purchase as well as their IDs to ensure that those entering your venue are who they say they are.

4. Have onsite staff monitor for suspicious activity

Assign a couple staff members to patrol the admissions line, using multiple iPads to check in and verify attendees up and down the line so that all they have to do at the gate is scan their tickets. In doing so, it will help keep the wait times down and allows your staff to be on the lookout for scalpers trying to resell tickets to others in line. 

5. Turn off ticket sales prior to your event's start time

Because fraudsters will try to buy tickets as close to your event as possible, be sure to close online ticket sales prior to your event's start time and only sell tickets at the box office on event day. A good rule of thumb is to turn off online ticket sales 24 hours before the start of your event. 

6. Review large ticket orders

Large orders (typically eight or more tickets) are more likely to involve fraudulent activity like scalping because the buyer can resell those tickets in bulk to make a quick profit. When monitoring orders, look out for fake email addresses, unusual names, billing addresses that don't match (especially locations far away from your event), and duplicate emails or names on multiple orders.

7. Reach out to buyers with suspected fraudulent orders

If you do suspect fraudulent activity, contact the ticket buyer directly and say you'll refund the order unless you hear otherwise in the next 48 hours. If it was a genuine mistake, they'll let you know.

Chargebacks aren't fun for anyone, so it's important to have a trusted team fighting them for you. With TicketLeap on your side, you'll have the peace of mind to focus on planning and selling tickets to your next big event. With a dedicated team ready to challenge every chargeback, no other ticketing company fights for you as hard as TicketLeap does!

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Using a Free & Intuitive Ticketing Platform

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