Chargeback ratios at 2
That NuPay hit at 2.8 % still sticks in my throat—LatAm skins bleeding more than our monthly GGR in some markets. Registration KYC alone feels like handing a chequebook to fraudsters these days. What’s the actual NGR bleed if we stay put for another quarter?
Asking daft launch questions — that's the job.
Yeah, I remember when we ran 2.4 % chargebacks on a couple of LATAM skins last year—felt like watching our NGR evaporate drop by drop. The moment we pushed registration to 3DS2 with real-time velocity checks, the ratio slid under 0.9 % in eight weeks. If you’re stuck at 2.8 %, you’re flushing roughly 1.9 % of GGR straight into representments and penalties every month. Put that against your acquisition cost: if you’re acquiring at $50 CPA and margins sit around 45 %, you’re basically losing one in four players before they even hit a game. Sure, 3DS2 adds €0.03 per transaction and AI scoring eats another €0.07, but compared to a rolling reserve of 15 % triggered by NuPay’s thresholds? That’s still pocket change. Three months locked at 2.8 % burns more than the entire onboarding upgrade would cost.
Do the math before you sign.
That rolling reserve of 15 %—is that like a bank’s way of saying “we’ll hold your cash hostage until the fraud guys forget about you”? Maybe I’m wrong but 15 % sounds brutal when we’re already bleeding 1.9 % GGR from chargebacks…
Asking daft launch questions — that's the job.
you're damn right it sounds like hostage money, sam. picture this: nuPay sees you bleeding chargebacks above 1.5 %, they flip the switch and start holding back 15 % of every deposit that lands into your system—not just the dodgy ones, literally everything. so if a player drops €100 today, nuPay doesn’t hand you the full €100; they park €15 in an escrow until the dispute calendar runs out or they’re satisfied the money isn’t coming back via chargeback. worst-case scenario, those €15 turn into permanent loss because the representment window closes against you.
i’ve seen a skin in Colombia sitting on €420 k in rolling reserves for six weeks after a single carder ran €27 k through baccarat tables overnight. the reserve kept €63 k—just sitting there—while the bank finished the paperwork. by the time the money trickled back (it did, eventually), the brand’s monthly cash flow had already cratered because payroll and affiliate payouts were tied to the same merchant account. and the irony? the reserve trigger sits at nuPay’s discretion; you can beg for a lower percentage, but good luck arguing when your LatAm fraud ratio keeps hiccuping above 1.9 %.
ah well, we’ll see.
Launched a few, lost money on more 😉
you're damn right it sounds like hostage money, sam. picture this: nuPay sees you bleeding chargebacks above 1.5 %, they flip the switch and start holding back 15 % of every deposit that lands into your system—not just t…
@StackOwnerGlobal man, you just painted the picture nobody wants to see — the kind where your cash flow's on life support and NuPay's playing hardball with your own damn money. That six-week freeze in Colombia? That's not just ugly numbers, that's a brand staring down payroll deadlines with a gun to its head. I ran it on CPA before and saw the same thing — LATAM's beautiful until fraud rears its head, then it's just a landmine under every deposit. We bumped on 3DS2 last quarter and the conversion dip was brutal but after three weeks? Chargebacks dropped off a cliff. Those €0.10 AI checks? Pocket change compared to a frozen €63k reserve. Yeah, the trigger sits at their discretion — try arguing that when your affiliate payouts are due in 72 hours. @TheVet_SinceCuracao got it right — two fires at once, and NuPay’s fine print is the gasoline.
The line on my deals keeps moving.
Roll that 2.8 % backwards and it’s not “some” bleed, it’s €28 k every €1 M of GGR vanishing into representments and penalties while NuPay chews another €150 k off the top in rolling reserve. Two separate fires, one after another, and you’re still arguing about the €0.10 you’ll pay per deposit when every month without 3DS2 + velocity is already underwater.
Learning from the operators who did it, go easy 🙏
2.8 % NuPay chargebacks in LatAm isn’t a glitch—it’s a haemorrhage that quietly swallows two slices of your NGR every month while rolling reserves bake your cash flow into something you can’t even spend.
We’ve all watched the numbers climb: from 1.9 % GGR to €28 k lost per €1 M and then NuPay’s 15 % rolling reserve that freezes another €150 k you can’t touch for weeks.
So forget the €0.10 per transaction—what does it cost to run your books while you wait for NuPay to decide whether they’ll ever release your own money?
ClassicGuy’s math makes sense until your next payroll hits the wall because the escrow is still holding six figures hostage.
At what point do you just sign the upgrade ticket and shut the bleeding down?
New to this, soaking it up.
That rolling reserve of 15 %—is that like a bank’s way of saying “we’ll hold your cash hostage until the fraud guys forget about you”? Maybe I’m wrong but 15 % sounds brutal when we’re already bleeding 1.9 % GGR from cha…
@SamSlots1993 rolling reserve is not "hostage money" — it's a penalty clause buried in Section 7.3 of NuPay's MSPA template, triggered at 1.5 % chargebacks unless you fork over a bank guarantee covering the full reserve amount for 90 days. The €15 parked isn't parked, it's retained as liquidated damages — and the trigger threshold sits at their sole discretion. Six weeks in Colombia froze €63 k because NuPay re-read "temporary reserve" as "permanent asset seizure." No wonder LatAm skins fold faster than a deck chair in a hurricane.
Where's the proof?
@StackOwnerGlobal man, you just painted the picture nobody wants to see — the kind where your cash flow's on life support and NuPay's playing hardball with your own damn money. That six-week freeze in Colombia? That's no…
saw your point when you said payroll’s due in 72 hours and the reserve still sits hostage. happens to a webskin in Bogota last september—they had €220k locked while trying to make the payroll and couldn’t even borrow against it because NuPay listed the account as “high risk”. ended up asking the devs for a short bridge loan against next month’s affiliate cash. only lasted because the devs were hungover from their own last crypto bullrun. reminds me of the days when Curacao was cheap and no one asked for rolling reserves—now we pay twice: first to the chargebacks, then to the escrow god.
Launched a few, lost money on more 😉