Premium Charge
In September 2008, Betfair introduced a "Premium Charge" for wagerers whose winnings were deemed to be disproportionately high when compared to the amount of commission they pay. Specifically, members whose commission charges amount to less than 20% of their gross profits (across at least 250 markets) are required to pay the additional charge to make up the difference.
Even though Betfair insisted that the charge would only affect a very small portion of its members (less than 0.5%), it attracted a great deal of criticism on its member forum and from the broader exchange betting community. According to The Guardian, the charge has significantly changed the relationship between Betfair and its customers, as Betfair can no longer claim to be a neutral bet exchange provider "where winners are welcome" (its mantra for many years).
The customers most likely to be affected by the Premium Charge are successful traders, whose repeated backing and laying at small margins results in few losses (and hence yield little commission). Backers with a particularly good strike-rate may also be subject to the additional charge.
In June 2011 Betfair raised its Premium Charge to 60% for some customers, a move which was met by outrage.
Read more about this topic: Betfair
Famous quotes containing the words premium and/or charge:
“In taking out an insurance policy one pays for it in dollars and cents, always at liberty to discontinue payments. If, however, woman’s premium is a husband, she pays for it with her name, her privacy, her self-respect, her very life, “until death doth part.””
—Emma Goldman (1869–1940)
“I charge thee, Satan, housed within this man,
To yield possession to my holy prayers.”
—William Shakespeare (1564–1616)