Riskified Launches “Auth Rate Enhance” as Part of Chargeback Guarantee to Improve Conversion Rates and Maximize Ecommerce Revenues for Merchants
March 12 2024 - 9:42AM
Business Wire
New offering aims to optimize approval and card
issuer authorization rates to capture more online sales
Riskified (NYSE: RSKD), a leader in ecommerce fraud and risk
intelligence, today announced the launch of Auth Rate
Enhance, a configuration of Chargeback Guarantee that helps
merchants propel ecommerce growth by maximizing authorization rates
and approving more online orders without compromising on fraud
prevention.
In today’s competitive ecommerce landscape merchants fight to
attract and retain customers. But for many shoppers, the journey
ends before it truly starts. According to Riskified data,
approximately 15% of ecommerce orders fail due to card issuers
declining to authorize payment. Meanwhile, Riskified’s data
indicates that up to 70% of these declined payments may be from
legitimate customers who appear too risky. The impact is massive:
false declines were expected to generate a $157B loss (Nuvei) for
US merchants alone in 2023. Globally, false declines were set to
exceed $443B (Aite-Novarica), far outweighing the projected $48B
loss globally from actual ecommerce credit card fraud
(Statista).
Overly low authorization rates can choke conversion rates, in
turn stunting ecommerce growth. This situation highlights a
critical opportunity to optimize the various safeguards within the
purchase process to enable merchants to capture more customers and
revenue.
Auth Rate Enhance pre-screens orders and enriches the
analysis with data points that give issuers such as Capital One the
confidence to authorize more digital orders. Furthermore,
Riskified’s Chargeback Guarantee offers the flexibility to be
configured pre-authorization or a combined approach integrating
pre-auth risk assessment with a post-auth feedback loop. This
empowers merchants to optimize conversions, reduce insult rate, and
offload chargeback risk to Riskified based on the needs of their
specific business segments.
"We’re providing an intelligent risk signal to issuers, so they
can authorize more ecommerce transactions for our merchants,” said
Eido Gal, CEO & Cofounder of Riskified.
"Our integration with Riskified allows us to meaningfully
increase our authorization rates by leveraging data from their
merchant network, resulting in superior experiences for consumers
shopping with Riskified merchants," said Jonathan Borman, Head of
Fraud Partnerships, Capital One. The partnership has enabled
Capital One to decrease false declines by up to 25% with certain
Riskified merchants.
Working with Riskified, athletic apparel retailer Lorna Jane saw
an immediate 13% lift in its issuer authorization rate. The
retailer also saw a 98% reduction in chargebacks, emphasizing
Riskified’s high degree of accuracy in identifying fraud in
real-time.
"We were looking for a partner that would not only help us raise
our approval and authorization rates, but also minimize fraud to
keep us out of the most stringent chargeback programs," said Peter
Clarke, Chief Technology Officer at Lorna Jane. "Riskified does
exactly that, enabling us to significantly increase our overall
authorization rates while also ensuring accurate fraud
prevention."
Riskified’s Auth Rate Enhance can help merchants improve
their risk profile through accurate fraud prevention, see a
significant increase in authorization rates, establish critical
trust with card issuers, and take better control of their customer
journey.
About Riskified Riskified (NYSE:RSKD) empowers businesses
to unleash ecommerce growth by taking risk off the table. Many of
the world’s biggest brands and publicly traded companies selling
online rely on Riskified for guaranteed protection against
chargebacks, to fight fraud and policy abuse at scale, and to
improve customer retention. Developed and managed by the largest
team of ecommerce risk analysts, data scientists and researchers,
Riskified’s AI-powered fraud and risk intelligence platform
analyzes the individual behind each interaction to provide
real-time decisions and robust identity-based insights. Learn more
at Riskified.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20240312888271/en/
Aileen McNelis PR for Riskified amcnelis@nexttechcomms.com
Cristina Dinozo Sr. Director of Communications
press@riskified.com
Chett Mandel Head of Investor Relations ir@riskified.com
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