All posts with the tag Chargebacks
Whether it’s coverage of Cinco de Mayo celebrations or proposals of building walls along the southern US border, Mexico has been getting a lot of press lately. Mexico is quite controversial not only in US politics, but in the world of eCommerce as well. On the one hand, it’s the 2nd largest eCommerce market in Latin America, with over 51 million internet users. More than half of Mexican eCommerce shoppers frequent international websites, with online purchases by Mexican consumers expected to hit $22 billion this year, and $40.8 billion by 2019. On the other hand, Mexico has a bad reputation when it comes to online fraud, with a chargeback rate 2.8 times higher than the global average in 2015. Fear of fraud leads many eCommerce merchants to shut their virtual doors to Mexican consumers.
In this post, I’ll share some stats that demonstrate how businesses who block Mexican orders are making a costly mistake – turning away many good customers and a lot of sales revenue. I’ll also provide tips for managing fraud from this market.
In the world of CNP fraud, every day is Halloween. Excluding exposed fraud, which is fairly uncommon, perpetrators of online fraud go to lengths to conceal their identity and location in an attempt to fool eCommerce merchants. In this post, we provide an overview of the various techniques and methods employed by fraudsters to disguise themselves and give some pointers on how to identify these tricks for what they are.
The most basic of ‘disguises’ used by fraudsters to to avoid getting caught are fake names. To make a fraudulent transaction appear legitimate, fraudsters employ the following methods:Read More
Portero Luxury launched in 2004 as an online marketplace for consumers looking for pre-owned or rare luxury items. Based in New York City, Portero’s inventory includes the world’s most recognizable fashion designers such as Chanel, Hermes, and Bulgari. In an industry where consumers expect quality, the company sources every article from vetted suppliers and has live chat representatives available on their website to provide quick and accessible customer support.
We interviewed Alexis Clarbour, Director of Portero, who shared her tips for building a strong brand, optimizing customer experience, and combatting fraud. Clarbour also spoke about the substantial positive impact the company’s partnership with Riskified has had on its acceptance rate of international transactions.Read More
Managing eCommerce fraud operations is no easy task; whether hiring, training, and managing a manual review team, monitoring approval rates, and optimizing internal rules, a fraud manager’s attention is often drawn to many places at once. With so much on their plate at any given time, it’s easy to understand why merchants are drawn to “silver bullet” solutions to manage and prevent chargebacks.
One “solution” to chargebacks often utilized by merchants is fraud prevention blacklists; when hit with a chargeback, all the transaction details are simply added to a blacklist, so that the next time an order is placed from the same IP address or using the same email, the transaction is automatically declined. While they may seem like a great way to streamline internal operations and to prevent future fraud, blacklists are in fact a misguided way to address chargebacks.
In using blacklists, you block not only fraudsters but also many good customers. Moreover, there are pretty basic methods fraudsters can use to “fool” your blacklists. In this post, I will explain why you should stop relying on blacklists for fraud prevention.Read More
Everything about American luxury leather goods company Ghurka is linked to heritage – the company is named after the famously brave brigades of Nepalese soldiers who served in the British military, and the company still manufacturers bags by hand in its original Connecticut facility. However, the US-based retailer, founded in 1975, has managed to stay ahead of the times, with flagship stores in trendy New York City and San Francisco locations and a successful online store catering to both domestic and international customers.
We interviewed Justin Sellman, VP of eCommerce and Wholesale at Ghurka, who shared his tips for building a strong brand and optimizing consumer experience.Read More
For better and worse, we humans are not driven strictly by logic and self-serving interests. While decisions based on empathy, social norms and love allow us to have a functioning society, they often fail us when it comes to managing a business. In business, it’s important that we try to overcome psychological biases and instead strive to make the best decisions based on data and facts.
The work of behavioral economists is devoted, among other things, to identifying and explaining the psychological biases that lead us to make suboptimal decisions. In this post, I’ll introduce a couple of well known behavioral economics terms and will illustrate their application in the field of eCommerce fraud management.Read More
As the global eCommerce market continues to grow, eCommerce fraud will follow the same trend. Unfortunately, almost all eCommerce merchants have experienced the pain of fraudulent chargebacks. While it is possible to minimize chargebacks by rejecting all “risky” transactions, such a strategy is bad for business, as many good customers will be turned away along with the bad ones. In fact, our data suggests that 66% of orders typically declined by eCommerce merchants are actually placed by legitimate customers and should have been approved.
To help merchants accept more orders without the risk of costly chargebacks, we offer full chargeback guarantee on all Riskified-approved orders. In this article, I explain how our chargeback guarantee works, what it covers, and why Riskified offers this service.Read More
We’re excited to introduce our Chargeback Uploader tool that simplifies the process of getting reimbursed for chargebacks.
Chargeback Uploader Tool
With the Chargeback Uploader tool, you can receive reimbursement for fraud-related chargebacks by following three simple steps: