In our ongoing blog series about the dispute management process for video game commerce, we'll delve into the financial benefits of Xsolla Dispute Management service. We'll focus on how dispute management can directly impact your bottom line. For a detailed description of Xsolla Dispute Management and its capabilities, read our blog “Navigating the dispute management process with a merchant of record.”

Key financial advantages

• Optimized chargeback costs: Xsolla adheres to industry standards by charging only the unavoidable chargeback fee.
• No hidden fees: Unlike other providers, we do not impose additional dispute management fees or service fees for handling chargebacks. Xsolla Dispute Management is seamlessly integrated into our existing fee structure.
• No extra integration required: Xsolla's Dispute Management service is included in the Xsolla Anti-Fraud product. Upon integrating Xsolla Payments solution, this service will be immediately available. No further steps are needed.

Xsolla Dispute Management empowers you to maximize revenue and minimize financial losses by streamlining the chargeback process and avoiding unnecessary fees. How much can be saved? Savings with Xsolla Dispute Management: Xsolla data 2023 As these figures demonstrate, developers who choose to utilize third-party dispute management services face significant additional costs. In addition to the standard chargeback fee, they must also incur fees for the dispute management service itself, effectively doubling the overall cost associated with chargebacks. Use our calculator to estimate your potential savings from Xsolla Dispute Management. Xsolla disputes wins: The amount of all won chargebacks breakdown per developer tier Optimizing revenue with recovery rate metrics In addition to the win rate, which measures the success of disputed chargebacks (for more information, refer to our previous blog post), Xsolla utilizes another key metric to assess performance: the recovery rate. This metric, representing the ratio of won chargebacks to total filed chargebacks, is crucial for evaluating revenue recovery efficiency. While the win rate signifies dispute resolution success, the recovery rate indicates the financial performance in recuperating revenue. Xsolla's remarkable improvement in the recovery rate, soared from 36.3% in 2023 to an impressive 47.2% in 2024, surpassing the industry average of 12%. These are the best practices that have enabled Xsolla to achieve and maintain a higher recovery rate, ensuring enhanced revenue recovery for your business. Chargebacks reasons Xsolla’s Dispute Management team meticulously analyzes the reasons behind chargebacks to optimize our dispute resolution strategy. This data-driven approach enables us to effectively combat chargebacks and increase win and recovery rates. For our enterprise partners, a breakdown of chargeback reasons reveals that 76.7% of successful disputes were due to fraudulent activity, while 23.3% were related to non-fraudulent issues such as non-receipt or items not as described, etc. Through meticulous analysis of the chargeback reasons, the recovery rate for enterprise clients surged from 36% in 2023 to 47% in 2024. For mid-tier partners, our analysis reveals that 68% of successful dispute resolutions were due to fraudulent activity, while 32% were related to non-fraudulent issues such as non-receipt or items not as described, etc. The result was an uplift in the 2023 recovery rate of 39% to a 2024 recovery rate of 50%. For indie game developers, in most cases (75%), these chargebacks were fraudulent. The remaining 25% were due to issues like non-receipt or items not as described. Analysis of the chargeback reasons helped to raise the recovery rate to 35% in 2024. Xsolla Dispute Management’s team also considers factors like the type of project or game involved. For top subscription products distributed through Xsolla, we've identified a common trend: chargebacks often stem from automatic renewals, even when end-users have been notified about this feature. By providing clear evidence of these notifications to payment institutions, we achieved a recovery rate of 66% in 2023 for our partners with leading subscription-based games.

Next step? Reduce your risk

Our team is equipped with the latest techniques, tools, manual review, and automated processes to ensure timely chargeback resolution and a competitive win rate. Set up a meeting with one of our experts to learn how Xsolla’s Dispute Management can help you grow your business and overcome complexities and risks associated with chargebacks. Visit our website to learn more about our solutions and services and how you can empower your game to reach its full potential.