Not reached the heights of the higher rate PC fun yet, but aim to be soon.
I can't figure out from the BF terms (pasted below for info) whether the weekly higher rate charge is offset by weekly commission generated in the same way as it does with the standard PC?
So in an example where my lifetime commission generated floats around 20% of gross profit. I pay very little PC up to £250k, but when I pass the £250k mark then do I move to 40% charge or 20% (40% higher rate PC - 20% commission generated)? Para 9.7.5 in the terms suggest that it will be the latter I think?
9.7 †Premium Charges at higher rates
9.7.1 Higher rates of Premium Charge will apply to the very small number of customers (less than 0.1%) that satisfy the following conditions over the lifetime of their account:
Lifetime net profits*** exceed £250,000
Commission generated less than 40% of lifetime gross profits
Bet in more than 1,000 markets
9.7.2 The Premium Charge rate applied to each customer that satisfies these conditions is dependent on their lifetime commission generated to gross profits ratio. The exact rate will be determined by the following table:
Lifetime commission generated to gross profits ratio Applicable Premium Charge Rate
< 5% 60%
5% - 10% 50%
10%+ 40%
9.7.3 Please note that any single market win that constitutes more than 50% of your lifetime gross profits will be excluded from all calculations.
9.7.4 If you satisfy the conditions set out above on 20th June 2011, your lifetime commission generated to gross profits ratio on that date will be used to determine the Premium Charge rate that will be applied to your betting thereafter. If you first satisfy the conditions above after 20th June 2011, your Premium Charge rate will be determined based on your lifetime commission generated to gross profits ratio at that time.
9.7.5 The amount of Premium Charge incurred by each customer will be calculated in exactly the same way as the standard Premium Charge with the exception that the standard 20% rate will be replaced with increased rate applicable to the individual in each case.
9.7.6 For the purposes of introducing a change to the Premium Charge rate that applies to your betting, we will assume that you have always incurred the Premium Charge at the prevailing rate. For example, if the Premium Charge rate applicable to your betting increases from 20% to 40%, we will assume that you have always paid Premium Charges at 40%. However, as explained in the Calculating Potential Charges section above, this also means that for some customers, some or all of the £1,000 allowance against the charge will have been used in order to offset hypothetical charges paid. Assuming hypothetical charges had been paid prior to introduction of the charge has the effect of reducing the amount that customers would typically incur.
9.7.7 It is possible that your lifetime commission generated to gross profits ratio will change to the extent that your applicable Premium Charge rate will require adjustment. Should your rate change, we will recalculate as if you had always incurred the Premium Charge at the new rate. If your rate has decreased (eg if your lifetime commission generated to gross profits ratio increases from 4.9% to 5.1% - moving you from a 60% rate to 50% rate), the Premium Charges you ˜overpaid when being charged the higher rate previously will be used to offset future Premium Charges. If your rate has increased, Betfair will notify you directly and give you at least two weeks' notice before the increased rate takes effect. You are entitled to seek review of your Premium Charge rate at any time.
9.7.8 ***By net profits we mean the amounts won less the amounts lost, on all Betfair markets, less all commission paid and Premium Charges debited.