Caution: Don't send mass refunds for IAP

Many of you know that recently my account got banned and since then I have been wondering the reason for that because there exactly same apps present on play store which have gained from my ban. There are tens of them with at least 100K+ downloads. Now I have nailed down the reason for ban.

I wanted to remove IAP from all my apps because maintaining the updates regarding showing/removing of ads was getting painful. I refunded money to all my users who did an IAP in last 6 months. When google banned my play account they also banned wallet account. On reaching out to wallet team and explaining them that I am consumer too and need to purchase content from play store. IAP purchasing requires wallet account in India (not sure of other countries). They replied it can not be reopened because of invalid activity. How come invalid activity? Probably google also needs to refund the amount (30% of the IAP amount which google keeps) to the user? They had shown the earnings in their quarter results and I was causing that earning to reverse? The ban came almost 4-5 days after the refund. The total amount which I refunded was around $500.

So a word of caution to all you specially since google making address mandatory for IAP apps. Better unpublish the apps with IAP than to remove IAP. Removing IAP without refund will result in the users to complain and ask for refund. On mass refund you see what happens…

Good to know , Thanks for sharing
however was it worth it to have IAP , was it a game or just ad removal from app ?

Thanks for the warning. I am considering removing IAP from one of my apps, but I will just remove the buttton that allows purchases leaving the rest intact, so users who bought something shouldn’t complain. I bet in your case some algorithm detected too many refunds. You might try to explain why you did them to Google but I doubt they will listen. I wonder what companies willingly use Google Wallet, it seems more risky than Paypal.

It was ad removal IAP for $.99 . For me IAP didn’t work well.

  1. Integration was pain. No good tutorial on internet with straightforward steps.
  2. Many users would request refund immediately.
  3. Updating the code with new ad network or new SDK was pain ad I had to be careful to put the code inside if else checks.
  4. Ads would give more money from the same user than IAP.

May be admob’s new IAP ads are better suited for the needs now but it will make one dependent on admob only.

Removing ads by IAP is not worth it. I am moving to paid versions of apps instead.

IAP for removing ads is definitely a bad idea

Paid version is probably not a good idea either (IAPs could do much much better)

I recommend you read the book Free to Play Toolbox from Nicholas Lowell, there you can find all the explanations

I also got into a problem with Google after I did only 1 refund. My Wallet was set on hold, and I had to prove my identity by sending a copy of my passport. They have a special procedure for this, but it was not immediately clear if I had to send it physically, or as a pdf. Finally I ended up sending it as an attachment in a reply mail. I did not feel very comfortable with this procedure, as there is a lot of rumour about identity theft. But I had no choice than to comply, and my Wallet was unlocked again. Up till now all seems good. But the lesson is: do not refund if you can avoid it.

@hinzaldi - are you sure it was because of a refund? In Europe such identity checks are required by law after you reach some threshold in earnings. And Google won’t steal your identity. :slight_smile:

You’re right, it could be coincidence. It happened about 24 hours after I did my first and only refund. But for the same it could have been a routine check. The way they do it is strange I think, because I had to chat with a person from the helpdesk, who was certainly helpful, to inform me how I could send the copy of my passport. If Google checks everyone with a Google Wallet, then they should upgrade their procedure, and make it much more transparent. So this is also why I assumed that it was not a normal routine check.

I did subscription for Ads removal… almost nobody signed up (could be too high though… $5/month).

I am also debating if I should go for $0.99 ad removal I-APP or paid app without ads instead? My fear is people will refund the i-app and get away with it, as I see almost 70% of my game i-apps being refunded

And what about piracy of paid applications? I always heard it’s huge.

Regarding refunds, we all are under the risk of this kind of problem. After all there are many cheaters all around the world. But for sure the number of cheater is lower that the number of honest people. Otherwise, almost no one would use in-app purchase and it wouldn’t be spread that this is an wonderful way to make money.

Also, why don’t you try to release 2 applications: a paid one and another one that has the in-app purchase for ads removal to see which one performs better for you?