On Twitch, a donation is one of the ways for the viewers to support their favorite streamer. But many streamers face a problem when they try to receive the donation.
They face the fact that they must return the donation to the donators and get charged by the chargeback fee. So instead of earning money from the donation, they lose more money from the chargeback fee.
This guide will explain everything you need to know about donation chargeback on Twitch, which will be common after you achieve Twitch Affiliate and how to avoid them. I hope this article can help streamers that currently face chargeback claims on their channel.
What is Donation Chargeback on Twitch?
Donation chargeback is a donation that is refunded back to the donator. Twitch donation chargeback occurs when a Twitch user donates money to a streamer then asks for a refund in the future. Usually, Twitch users chargeback on the donation because they want to get famous for donating a huge amount of money on Twitch without actually donating the money.
Why do some Twitch users Chargeback their Donation?
Some Twitch users chargeback their donation because they get satisfaction from giving the donation but then regret it after the money was spent. Maybe they can feel that they become the center of attention after giving a huge sum of money from the donation
Some Twitch users chargeback their donation simply to troll the streamer. Jordyx3, a Twitch streamer, lose $5100 on his PayPal account because the Twitch donator wants to torment the streamer
This is the Twitter message that records the insanity of some people that chargeback their donation
Of course, not all chargeback donation is intentional. Some users may have a sudden urgent need for money after donating the money to the streamer. Of course, donation chargeback is not ethical. Taking back a gift that has already been given is considered rude in most cultures, but there is nothing that can prevent donation chargeback happen on Twitch
Why Twitch Streamers hate chargeback donation
Twitch streamers hate chargeback donation because Twitch streamers receive a charging fee after the chargeback gets approved. Because most Twitch users donate using PayPal account, Twitch streamers are not protected on PayPal’s Seller Protection. Twitch streamers will lose money for every chargeback donation on their channel.
What stresses the streamer most is that if there is not enough money on the steamer PayPal’s account, their balance will become negative. Streamers must pay the money to PayPal in 120 days, or else their account can get locked by PayPal.
It’s no big secret that PayPal always approves the request of donation chargeback on Twitch.
Why Streamers doesn’t celebrate big donations on Twitch
Because every donation on Twitch has the risk that it’s actually a chargeback donation, some experienced streamers don’t celebrate the donation. Most of them will ask hesitantly to the donator, “Is this a real donation? Not a chargeback?” just to make sure. This situation reduces the enthusiasm of giving a donation on Twitch because most people don’t believe that donation is true
Why doesn’t PayPal favor streamers when chargeback happens?
Donations are introduced on PayPal to make supporting non-profit organizations easier and not be counted as a regular transaction. Because Twitch streamers are not protected on Seller Protection, Twitch donators can claim that the donation was an unauthorized transaction. The credit card company or the bank will ask PayPal to chargeback the donation even if the streamer is not at fault in this situation
It’s not up to PayPal to authorize whether the donation transaction is legitimate or not. As long the bank or credit card provider authorizes the chargeback request of the donation on Twitch, PayPal must pull the money from the streamer’s PayPal account, which results in a $20 chargeback fee
So technically, it’s not PayPal fault that viewers asking for a chargeback after giving donations are frequent on Twitch
Does Streamer get a notification after Receiving Donation Chargeback?
Streamers will get an email from PayPal if there received a donation chargeback on their account. Usually, there is 10 days period to respond to the claim. Sometimes, the streamer will only be notified after the chargeback are verified, so there is no time left for the streamers to defend themselves from the chargeback claim
How to Respond to Donation Chargeback Claim as a Twitch Streamer?
After getting an email from PayPal, you have 10 days to defend yourself from the claim. Prepare the money on your PayPal account in case you lose the claim. Download the clip VOD’s of the moment when donations happen. If you can’t clip the moment because it’s already deleted from your channel, then use the information saved by streaming add-ons like Streamlabs and StreamElements.
Streaming add-on usually saves the donation record, the message that came along it, email, ID, and time of donation. Use this information to prove that the donation is authorized by the Twitch user, so they can’t chargeback the donation
Keep in mind that PayPal only gives streamers a chance to defend if the chargeback happens in PayPal. If the credit company or bank issues the chargeback, it will be almost impossible to defend yourself because PayPal is just a middle man in that situation
Why It’s important to save the record of the donation in case of Chargeback happen
By saving the moment when donation happens, the clip VOD’s can prove that the Twitch user has the full intention to donate his money. This evidence is important because it proves that the Twitch user in question is fully responsible for his action, without any hint of fraud or misled.
Can I Win a Chargeback claim as Twitch streamer?
The sad truth of being a Twitch streamer is that even if you have all the evidence that proves the donation isn’t fraud, you will lose the claim most of the time. So you need to prepare the money on your PayPal account no matter what happens to the donation
What if Streamer can’t defend from the chargeback claim?
According to PayPal FAQ, The donated money on your PayPal’s account will be returned to the Twitch user. If Streamer doesn’t have enough money on his PayPal account, his account balance will become negative. There is no overdraft fee or negative balance fee in this case, but you still need to pay it before 120 days, or else your PayPal’s account will be locked
How to Prevent Getting Chargeback from the Twitch Donation?
Use tools like StreamElements and Streamlabs to help you provide multiple ways for your viewers to donate to your channels. StreamElements have a database of Twitch users that keep chargeback their donations, so their donations can be automatically blocked
You, as a streamer, can also ask your viewer to subscribe to your channel instead of donating. Subscriptions are harder to get chargeback than donations because if chargeback happens, the defendant will be Twitch, not you
Twitch Subscription will provide a more stable and safer income to you than getting a donation.