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All posts with the tag False Declines

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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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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( This article first appeared as a guest post on the I Love Fashion Retail blog )

Fashion retailers, especially those selling luxury and high-end goods, are often targeted by fraudsters. While the rollout of pin-and-chip credit cards is expected to reduce fraud rates in brick-and-mortar stores across the US, this technology is not effective in online transactions. As they are liable for fraud, eCommerce merchants naturally strive to avoid accepting fraudulent transactions and incurring the related chargebacks. Regrettably, this leads to risk-averse policies that result in good customers being rejected along with fraudsters. We have seen many cases of retailers missing out on expansion opportunities due to fear of fraud.

Riskified has the pleasure of partnering with some great fashion brands and retailers, including Ssense, Far Fetch, Vestiaire Collective, Burton, Portero Luxury, and Ghurka, to name a few. In this post, we share best practices for online fashion retailers looking to avoid fraud without turning away good customers.

 

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Despite growing awareness about the issue of false declines among eCommerce merchants, it is inherently an “invisible” problem. How can retailers measure or know how many of the orders they declined due to fear of fraud were actually valid and should have been approved? Only a small percent of customers’ whose orders are declined will reach out to the merchant, and in many cases fraudsters will also file a complaint over having their order “wrongly” declined. In short, it’s difficult to know which declined transactions should have been approved.

To better understand the true scale of the false declines problem, Riskified commissioned a white paper from strategy & research company Javelin. Javelin surveyed 3,200 consumers about their experiences with credit card declines in 2014. In this post, we share some key findings from this research into the impact false declines have on consumers in the US.

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