When we talk about the gaming industry, one of the biggest problems operators and affiliates are facing is the problem of chargebacks.
Not just for financial reasons. Gaming chargebacks can have a special kind of stigma associated with them that can harm the overall reputation of the brand if customers think fraud, bonus abuse or more has taken place. That can put many companies at serious risk of having their gaming licence revoked if their rate of chargebacks is abnormally high.
At the same time, there has been a significant rise in so-called ‘friendly fraud’ where more and more people are open to abusing the overall chargeback system. So, how can companies operating in the sector increase their security online, reduce the rate of gaming chargebacks while at the same time keeping customers onside?
Collecting the right data can help reduce gaming chargebacks
There’s an interesting plea on the website Casino Advisor, asking gamers to be responsible and not to action chargebacks on legitimate transactions. They highlight how different exploring a chargeback can be from other industries, and how gamers looking to abuse the system could potentially be blacklisted, not just from the site they’re using but from others within the industry as well.
It can sound heavy-handed, but from a gaming perspective it’s only right to be vigilant when somebody’s used your service, made a loss and wants to claim it back unfairly.
Fibonatix is able to work alongside gaming companies to stringently assess their current internal and external financial systems to identify areas that could be tightened up, improved and help gaming companies to reduce the amount of chargebacks they receive.
Take the above example, for instance. How clear and easy to digest are your terms of service? Do gamers using your services understand the risks to them and their own reputation within the industry if they issue a chargeback every time a result doesn’t go their way?
A closer relationship with customers reduces chargebacks
With the online nature of a lot of gaming services and affiliates, there’s also the chance to collect data from players in ethical, transparent ways. Using that data to get a better understanding of your users and adjusting the gaming experience to their needs is one of the best ways to reduce the rate of chargeback requests in the gaming sector.
That can be a double-edged sword, though. There’s so much potential data to collect in the gaming sector that it can be easy to collect the wrong data sets. Focusing on the right data is the key to reducing chargeback misery.
A customer who makes a chargeback request and succeeds is 50% more likely to do it again within 90 days according to research. As well as the data equation, there are a huge range of other internal changes that can be made to filter genuine requests from fraudulent activity.
How quickly does your service collect funds from gaming customers? How does your company name appear on their statements? How effective are communications between your team and customers who have complaints? Is it easy for customers to make a deposit and a withdrawal?
Streamlining and perfecting these measures and other factors are just some of the ways gaming companies can hold onto their profits, keep customers happy and continue to grow in the gaming sector.
A culture of chargebacks and ‘friendly fraud’ is hitting businesses of all shapes and sizes. How can companies adapt to an evolving consumer chargeback philosophy, protect their profits and keep markets happy at the same time? Read ‘What is friendly fraud and how do chargebacks work?’ to learn more.