Chargebacks In The Gaming Industry: A Growing Concern.pdf

The global gaming industry is experiencing a surge in revenue, with estimates suggesting it will reach $268 billion by 2025. However, this growth is accompanied by a significant increase in chargebacks, which are disputes over transactions made through in-game purchases. Chargebacks are a major problem for game developers and online platforms, as they result in lost revenues and have no profitable recovery methods.

The shift to in-app purchase models facilitated by rapid credit payments has led to an increase in chargebacks. Technical errors, customer disputes, and low-value transactions contribute to the high volume of chargebacks. The industry's focus on stickiness ratings and user retention often leads to the sacrifice of secure payment systems, making it easier for chargebacks to occur.

Younger-aged gamers are more likely to initiate payments, leading to an influx of wrongful purchases. The ability of game infrastructure to store credit card information can also lead to mistaken purchases by children. Account issues, such as hacking or malfunction, can result in chargebacks. Even cheat code software can lead to errors that cause customer disputes.

Criminals also use gaming platforms for carding attacks, testing out stolen credit card information through simple game systems. The gaming industry had some of the highest attack rates in 2021, averaging around 33% and 65 attacks per second.

To combat the growing issue of chargebacks and gaming fraud, game publishers need a chargeback mitigation partner. In-house chargeback solutions are too costly for small payment reversals common to in-game purchases. Justt offers a unique combination of technology and expertise to fight and win microtransactions disputes, saving game publishers the costs involved with dispute resolution teams.

Justt's chargeback mitigation solution can recover low-value disputes without the extensive costs associated with in-house resolution teams. The company builds customized solutions for each partner, managing the entire chargeback lifecycle to disputing chargebacks and helping level the playing field for gaming companies. By reducing chargebacks with less risk exposure, Justt enables gaming companies to adapt to the evolving connected information age.