Premium charge from BetFair
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Just clicked on my balance and I saw the premium charge notice. My charges are huge and I’m wondering if anyone know what this figure actually represents
+0January 1, 2016 at 5:35 pm
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I can’t see anything like that on my account?
+0There’s a premium charge once you’ve paid a certain amount of commission if I remember correctly. I don’t use Betfair but I know someone who also has the charge.
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Where do I find out this charge? got me all worried now!
+0Just read about it all. Sounds really confusing. Is there anyway you can see if your close to having to pay them! Clearly 8000 betfair points and all the commission paid to get there isn’t enough money for them!
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Each customer will also have a £1,000 allowance against the Premium Charge. This means that every customer considered for the Premium Charge will be exempted from the first £1,000 of the charge incurred.
Surely you wouldnt have above £1000 of charges??
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Premium Charge Summary
You will only be considered for the Premium Charge if, over the lifetime of your account, you satisfy the following criteria:
Your account is in profit;
Your total charges generated are less than 20%† of gross profits; and
You bet in more than 250 markets.I dont go anywhere near 250 markets?
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I don’t think any of us should be worried to be honest
+0I agree Ryan I think some of it could be to hit computer bots
+0250 markets isn’t that difficult, go to the “profit & loss” bit to see how many. Last 3 months I’m in ~200. However, I’m £700 down so seems unlikely my account will ever be in profit.
+0If you match bet and only use betfair, you are very likely to hit the premium charge at some point.
+0How much is the “premium charge “
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Read the terms and it’s right over my head. Anyone care to put it in simpler terms☺
+0I don’t use betfair so I can’t see if the info needed to calculate the charge is available. You would need to know the gross profit and total commission paid.
For example, imagine you were subject to premium charges and had a gross profit of £1000 for the week, £5000 for the lifetime of your account. We will also assume you have a 100% ‘win’ rate on betfair – your lay always wins. The commission paid would be 5% – I know it would be less with the points but it’s easier for the example! We will also ignore the £1000 allowance – it’s late and I’m not getting into larger numbers!
Commission for the week would be £50, total commission paid would be £250.
The premium charge applies when total charges is less than 20% of gross profit. The charge for the week is the lower of the difference in premium charge and commission for the week versus the same for your whole account life.
In the case above the premium charge would be 15% of weekly gross profit – £150!
This example is extreme – no-one will have a 100% lay strike rate.
The reason match bettors are more likely to be subject to this charge is that the activity through betfair is likely to be higher, commission % will be lower due to the points and we aim to get money from the bookies across to betfair. Gross profit should therefore be fairly high and total commission as a % of gross profit may be low.
In the example above, the person would have used up £750 of their allowance so no charge applies. I think realistically you only need to start worrying once you reach gross profit of £10k – probably higher tbh.
Can someone let me know if you can see total commission paid and gross profit on Betfair?
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