Startup risk management vendor Riskified recently launched a product aimed at helping e-retailers mitigate the risk of accepting online orders.
The product, called Never Decline, lets online merchants select only their most high-risk transactions to send to Riskified for review. Approved transactions come with a money-back guarantee if they turn out to be fraudulent.
Riskified uses a number of technologies to review transactions, which can help it determine whether they are legitimate. Among them is device fingerprinting, a technique that traces the transaction history of the device being used to initiate a purchase.
The vendor says e-retailers using Never Decline have been accepting a higher percentage of online orders than they were previously, boosting their revenue. For instance, footwear retailer Stubbs and Wootton’s international revenue increased 9% in the three months after it began working with Riskified compared to the previous three months, the vendor says. Moreover, Stubbs and Wootton reduced its chargebacks by 85%. A chargeback occurs when a cardholder lodges a complaint and the card-issuing bank takes back the money paid to the merchant and removes the charge from the cardholder’s account.
“Until now, if a customer connected from an IP address in Russia, had a credit card from France and was shipping to the United States, most merchants would have declined the order, forfeiting a good sale,” says Eido Gal, the vendor’s co-founder and CEO. Riskified, he says, helps the retailer more accurately determine whether it should approve such potentially fraudulent transactions.
Riskified offers three Never Decline options:
- Select and submit, which lets retailers choose specific transactions to submit for review, for a 4.9% per-transaction fee.
- The international plan, which automatically sends any overseas orders to Riskified for review. Retailers using this plan pay a 2.4% per-transaction fee.
- The domestic mismatch plan, which automatically reviews transactions that contain inconsistencies the retailer wants to watch for, such as a disparity between the shopper’s billing and shipping addresses. Retailers using this plan pay a 1.9% per-transaction fee.
The vendor also lets retailers submit all their orders to Riskified for review for a 1.4% per-transaction fee.
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