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Unknown Worlds (Natural Selection 2) lost $30K due to key resellers, bans chargebacks

Recently we asked Valve to deactivate 1,341 Steam keys that were purchased through our website. As a result, some Natural Selection 2 players who were previously able to play the game on Steam are now receiving a “Buy Again” option instead of the “Play” option. This episode is a prime example of why all gamers need to beware discount steam keys and those offering them.

We deactivated these keys because they keys were purchased with credit cards where the card-holder initiated a “charge-back.” A charge-back is a consumer protection mechanism offered by payment companies such as Visa, allowing a card-holder to dispute a charge on their credit card statement. This means we never received payment for the game. In fact, we were charged a fee by the card issuer for the charge-back. For these 1,341 keys, these fees totalled around $30,000.

The owner of the stolen credit card ultimately disputed the charge and we lost the sale. In total, we lose ~$45 per transaction of this kind, due to the charge-back fee (~$22 fee + $25 game price). Meanwhile, the unauthorized key reseller kept the money from the player who ultimately received the bad key.

More at the link: http://unknownworlds.com/blog/beware-shady-key-resellers-and-discount-steam-keys/

It is terrible that they lost so much money due to key resellers.
 

Xater

Member
Well also shitty for the people who bought the game though. They are probably never going to get that money back either.
 

Mrbob

Member
Well also shitty for the people who bought the game though. They are probably never going to get that money back either.

Yeah it sucks for them, but then they should buy from a reputable site in the first place.
 

KKRT00

Member
22$ fee from bank for charge-back o_0, now we know why DD shops are so aggressive in cases of charge-backs.
 

RodGreen

Neo Member
This really sucks especially for such a small developer. I wonder if there's anyway to protect yourself (as a developer) from this?
 
The game was like 20 euros on steam at launch, why the fuck even go for a reseller ?

@ shagg, no this is why you don't buy a key from some shady guy on a forum offering keys for 10 bucks...

I bought bf3 for 15 euros from a reseller at launch (russian key) and never had any problems other than EA trying their hardest (and failing) to break the game's language files with each patch ;)

I still overpaid for that pos game.


22$ fee from bank for charge-back o_0, now we know why DD shops are so aggressive in case of charge-backs.
Wish 4chan would set up a boycott group and spam create new uplay accounts to buy-> chargeback games.
 

Wok

Member
@ shagg, no this is why you don't buy a key from some shady guy on a forum offering keys for 10 bucks...

I have seen the game for sale for 5.50 dollars in a thread on GAF.

Few games for sale or trade:

Chivalry $5.50
Ace of Spades $3
Natural Selection 2 $5.50
War of the Roses $2.25

The one time I purchased a grey market key from someone it worked fine, but who knows how it was obtained for so cheap so close to the launch of the game. It just doesn't sit right with me. I didn't use a VPN or anything, either, so I have to wonder if it came from a chargeback scam instead of being a cheap key from another region.

I don't know either. I hope it comes from another region.

I bought one from ngt. It was a Steam gift 4-pack (I had to send him back the 3 remaining copies). So it was definitely bought via Steam.

Ok. Cool. :)
 

Draft

Member
That's awful. I'm sure UW can't easily absorb those losses.

Key reselling is basically piracy and I have no sympathy for anyone that "lost" their key; they never really had one in the first place.
 
It's a shame that this happens because a lot of decent people sell keys in the Buy Sell Trade thread, but there's literally no way to tell the good from the bad until it's too late.
That's awful. I'm sure UW can't easily absorb those losses.

Key reselling is basically piracy and I have no sympathy for anyone that "lost" their key; they never really had one in the first place.
From now on I guess Humble Bundle needs to start employing some fraud protection methods. Don't know if this was a single person doing it hundreds of times.

You would think Visa would be smarter than this...
 
This really sucks especially for such a small developer. I wonder if there's anyway to protect yourself (as a developer) from this?
Of course there is.

Only sell through steam. Valve will get hit with the chargeback fee and not them.

Or gmg or some other retailer. Of course they get aggressive on chargebacks and this is why.
 

Mithos

Member
From now on I guess Humble Bundle needs to start employing some fraud protection methods. Don't know if this was a single person doing it hundreds of times.

Don't send keys out to people paying with CC until the charge-back period is over, how long is that 2 weeks (if anyone exist at all)?

Edit:
Never mind apparently charge-back is possible for 120days.. ouch.
 
I have seen the game for sale for 5.50 dollars in a thread on GAF.

I don't know either. I hope it comes from another region.

I bought one from ngt. It was a Steam gift 4-pack (I had to send him back the 3 remaining copies). So it was definitely bought via Steam.

Anyways, it really sucks for Unknown Worlds.
 

DashReindeer

Lead Community Manager, Outpost Games
You would think that they would have some type of paper trail to trace this one back to the evil doer!

Yeah, you'd think you could track the payments for the keys from the end users.

Chargebacks really are a bitch, and this was really the only recourse that any of the involved parties had here. The person who bought those keys in the first place is to blame, and I do hope they get caught because they deserve punishment.
 
Don't send keys out to people paying with CC until the charge-back period is over, how long is that 2 weeks (if anyone exist at all)?

Edit:
Never mind apparently charge-back is possible for 120days.. ouch.
I'm pretty certain a lot of companies have problems with grifters. It's just that the smaller ones are hit the hardest.

The obviously simplest fix would be to only allow sales on "draw from account" transactions (debit card, prepaid card, online pay client linked to actual bank account etc.). It would completely obliterate online CC operations, however. Not that I care, though.
 

Rufus

Member
Wait, so someone bought that many keys with one card, through their website, which uses the Humble Bundle Store? That's nuts.
 

buhdeh

Member
Damn that sucks. It's a great game and it's been on sale for $12.50 MULTIPLE times... why even risk going to a reseller to save 5 bucks?
 

SapientWolf

Trucker Sexologist
Yeah, you'd think you could track the payments for the keys from the end users.

Chargebacks really are a bitch, and this was really the only recourse that any of the involved parties had here. The person who bought those keys in the first place is to blame, and I do hope they get caught because they deserve punishment.
The scammer(s) sold keys and then issued a chargeback to refund their money. The secondary buyers will have to do separate chargebacks.
 

baphomet

Member
Really sucks for the devs. They came across as very genuine and thankful for their players in the giant bomb quick look. Also sucks for the people who's keys were banned, but that's the risk you take buying from questionable resellers.
 

kamspy

Member
What does this have to do with keysellers?

NS2 was in shit shape for a while. Seems feasible that people just wanted their money back.

Can unknown worlds prove that it was keysellers initiating the chargebacks?

Keyseller sites exist only to exploit exchange rates. No different than EuroGAF begging other regions to gift them shit at a better exchange rate.
 

SapientWolf

Trucker Sexologist
What does this have to do with keysellers?

NS2 was in shit shape for a while. Seems feasible that people just wanted their money back.

Can unknown worlds prove that it was keysellers initiating the chargebacks?

Keyseller sites exist only to exploit exchange rates. No different than EuroGAF begging other regions to gift them shit at a better exchange rate.
The keysellers are the ones that did the chargebacks that affected Unkown Worlds. Chargebacks to the keysellers wouldn't affect UW directly.

If the keysellers had huge numbers of people doing chargebacks on them then they should have contacted Valve before doing this. But that seems unlikely.
 

Gen X

Trust no one. Eat steaks.
Damn that sucks. It's a great game and it's been on sale for $12.50 MULTIPLE times... why even risk going to a reseller to save 5 bucks?

Maybe some of those people don't realize how some of these resellers or discount key sites aquire keys.

As for saving $5, a lot of people will buy elsewhere if it saves them a fiver.
 

kamspy

Member
The keysellers are the ones that did the chargebacks that affected Unkown Worlds. Chargebacks to the keysellers wouldn't affect UW directly.

If the keysellers had huge numbers of people doing chargebacks on them then they should have contacted Valve before doing this. But that seems unlikely.

I read the article, but I can't figure out how UW deduced this.

Keysellers would make just as much profit legally selling Russian keys. The exchange rate makes "stealing" keys a terrible decision. You can print money as-is if you have access to Russian keys and are selling them in other territories.

Seems like scapegoating to me.

If I just whiffed and glazed over how UW knows, without doubt, that all the chargebacks came specifically from keysellers that's another story.
 

SapientWolf

Trucker Sexologist
I read the article, but I can't figure out how UW deduced this.

Keysellers would make just as much profit legally selling Russian keys. The exchange rate makes "stealing" keys a terrible decision. You can print money as-is if you have access to Russian keys and are selling them in other territories.

Seems like scapegoating to me.

If I just whiffed and glazed over how UW knows, without doubt, that all the chargebacks came specifically from keysellers that's another story.
The keysellers probably used dummy accounts, and already took the funds and covered their tracks. I don't see how they have anything to lose.

On the other hand, any Steam user with any amount of games would hesitate before doing a chargeback. 1,341 chargebacks for one game with a slightly rough launch is unbelievably unlikely. Even War-Z purchasers would go through the proper channels to get a legit refund. The keys were pulled after the chargebacks.
 

kamspy

Member
The keysellers probably used dummy accounts, and already took the funds and covered their tracks. I don't see how they have anything to lose.

On the other hand, any Steam user with any amount of games would hesitate before doing a chargeback. 1,341 chargebacks for one game with a slightly rough launch is unbelievably unlikely. Even War-Z purchasers would go through the proper channels to get a legit refund. The keys were pulled after the chargebacks.

It just makes no sense to me. Why risk felony credit card fraud when you can buy bulk Russian keys and automatically double your money. I can't see someone keen enough to try to make money selling keys and not go Russian route. If a person has the sense to make a little money selling keys, they surely can see that just flipping exchange rates is a better proposition.

The affected people weren't doing a charge back through Valve. Just UW. They knew it would wipe their entire Steam account.

I remember a lot of turmoil during the preorder, beta, launch phase. I think it's totally plausible that these people just got their refund. Easily more plausible than someone risking fraud charges to sell NS2 keys on the internet.
 

SapientWolf

Trucker Sexologist
It just makes no sense to me. Why risk felony credit card fraud when you can buy bulk Russian keys and automatically double your money. I can't see someone keen enough to try to make money selling keys and not go Russian route. If a person has the sense to make a little money selling keys, they surely can see that just flipping exchange rates is a better proposition.

The affected people weren't doing a charge back through Valve. Just UW. They knew it would wipe their entire Steam account.

I remember a lot of turmoil during the preorder, beta, launch phase. I think it's totally plausible that these people just got their refund. Easily more plausible than someone risking fraud charges to sell NS2 keys on the internet.
They're using stolen CCs. They're already committing fraud. When people say, "shady key resellers" they really mean just that.
 
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