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All posts with the tag False Declines

Today’s college students are increasingly going online to spend their money, and retailers go to great lengths to attract this consumer segment. In fact, US college students have an estimated buying power of $545  billion, making them a very lucrative segment for online retailers to targetMany retailers offer deep student discounts and run high-profile ‘back to school’ campaigns in an attempt to capture some of the market.

However,  many retailers fail to realize that fraud prevention measures are holding them back from maximizing online revenue from students. In this post we share key stats about the fraud patterns and online shopping behavior of US students, which we hope will allow merchants to capture more revenue from this consumer segment.

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At this year’s summer Olympics in Brazil, eCommerce retailers and elite athletes will have one important thing in common: opportunity. That’s because athletes and online retailers alike will also be hunting for gold and silver. For merchants, it will come in the form of the payments consumers will be handing out from their pockets via Brazilian digital sales channels. The stakes could not be higher; Brazil’s 2016 retail eCommerce market is estimated to be worth over $20 billion.

However, the Rio Olympics also offer more sinister parallels as well. Many online retailers are wary of Brazilian fraudsters, resulting in hesitation to take full advantage of the country’s market. The result is that – like Russian track & field athletes who saw their opportunity stripped via a blanket competition ban brought on due to a fear of doping – retailers face the prospect of their own chances to make the most out of the 10th largest eCommerce market being taken away over fear of fraud.

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With over 1.2 billion international tourist arrivals registered worldwide in 2015, the online travel industry is experiencing an explosion in demand. Online travel merchants can take advantage of the growing number of travelers who use digital channels to book their flights. Digital travel sales in the United States alone were valued at over $200 billion in 2015, and globally, it is projected that online travel revenues will reach $762 billion by 2019.

Riskified’s work with leading travel merchants, as well as Fortune 500 companies across verticals, has given us great insight into helping merchants overcome the CNP fraud challenges they face. We are currently in the process of compiling a report sharing data about fraud patterns in online travel, and best practices for travel merchants looking to safely increase approval rates. Following is a sneak peek at the report, which will be published in the coming weeks.

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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.

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As consumers increasingly go online to make their purchases, luxury fashion retailers are poised to realize huge gains in eCommerce revenue. It’s estimated that the market for online luxury goods will be worth more than 20 billion euros by 2018. Moreover, the move towards digital purchases will only accelerate this trend. Last year, US consumers were expected to spend half of their budgets for luxury fashion and accessories online.

Riskified works with many luxury fashion businesses – including FarFetch, Vestiaire Collective, and Ssense. Our experience with these retailers has given us great insight into what card-not-present (CNP) fraud patterns look like within this industry. In this post, I share these insights and discuss what measures retailers can take to protect themselves without negatively impacting sales.

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As the eCommerce market continues to grow, so does card-not-present fraud. However, many online retailers don’t realize that more money is lost to false positive declines – purchases wrongly identified as fraud attempts – than is lost to actual CNP fraud. For retailers, there’s no simple way to determine how many of the orders declined due to suspected fraud should actually have been approved. But just because it’s not easy to quantify, doesn’t mean it’s not an important problem.

We created this infographic to shed light on false declines – the silent revenue killer. The infographic is based on Riskified’s internal data as well as on research conducted by Javelin Strategy.  By illustrating the scope of the false declines issue, we hope to show retailers how much they stand to gain by working to eliminate this problem. 

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Anyone who has ever played or watched a poker game knows that any money one side wins is money that their opponents lose (trust me when I say from experience that when losing money playing poker the same concept applies, only in reverse). This is a classic example of a “zero-sum” game, in which one player’s loss is another player’s gain.

In this post, I use poker as an analogy to explain why false positive declines – the unfortunate mistake of rejecting legitimate orders due to suspected fraud – are especially devastating for merchants selling digital goods such as gift cards and e-tickets.

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Ecommerce dominated the holiday shopping season this year, with steady year-over-year growth in both desktop and mobile sales. Cross-border eCommerce also increased in this holiday season, as consumers around the world took advantage of discounts and promotions on Single’s Day, Black Friday, Boxing Day, and Cyber Monday. But while there are a multitude of available stats about the volume of online sales, there is very little information about the rate of fraud during the 2015 holiday season.

In this post, we share Riskified’s observations about card not present (CNP) fraud during the 2015 holiday season. We explain how eCommerce merchants can learn from their holiday season challenges and mistakes, and share best practices for improving fraud management performance going forward.

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