The wider problems apparent in the online payment environment have been highlighted following recent comments reportedly made by Sony customers after the entertainment technology giant suffered a data breach caused by cyber hackers. Customers are allegedly complaining that after being offered inadequate refunds, they are unable to seek a chargeback from their bank without being cut off from the online gaming network.
According to Forbes, worldwide revenue from online games is estimated to reach $35 billion by 2017. This is a phenomenal market size, which unfortunately makes it increasingly attractive to hackers. Stronger security online is needed to prevent passwords, personal data and accounts being hacked in the first place. It is the company’s responsibility along with their partners to ensure they are prepared for chargebacks as and when they occur as a result of a hack or fraudulent transaction.
Ideally these particular chargeback cases should be resolved amicably and professionally with the customer directly. In doing so this will prevent the need for the customer to go to the bank for a refund. In most chargeback cases, customers go direct to the bank as a final course of action if they do not succeed with the merchant. Having a security solution in place can help prevent the fraudulent transactions happening in the first place, helping reduce the chargeback risk.
Each company is free to decide how they want to handle the threat of chargebacks, but they can be very costly for the merchant and ultimately disgruntled customers will take their business elsewhere.
