Riskified Minimizing Risks in the eCommerce Industry

NEW YORK, NY / ACCESSWIRE / August 18, 2021 / Expansion is something that all companies strive for but there are certain risks and factors that must be considered and taken into account, which can cause delays or even setbacks. One of the biggest challenges is to mitigate fraud successfully and sustain sales while growing a company, and Riskified offers a scalable solution for all businesses to expand worry-free.

According to the head of eCommerce risk management, “Anyone can say they’re managing fraud by over-declining, but at what cost? You will probably decline most of the fraudulent orders and your chargeback rate will be very low, but you’re losing good customers and revenue.” Riskified minimizes false decline rates which can be a problem in a growing company.

All companies should invest in risk protection because it protects both the business and its customers. Customers with the confidence to continue shopping on your platform will ensure steady growth, but if they run into problems such as being mistakenly identified as fraudulent, there’s little chance of them returning to your store. Nobody likes to be treated like a criminal and in the digital age, convenience is key. Ease of access and purchase is something that should be afforded to all consumers, without which, e-commerce companies are sure to fail. This is the number one reason why retailers are looking to fraud protection so that they are able to grow their customer base.

Navigating e-commerce can be tricky because of all the ways fraud can happen and many times, the company will have to bear the losses. One of the most common and prevalent strategies is termed “friendly fraud” or “chargeback fraud”. Customers would place an order and contact their credit card company and raise a dispute about the transaction being invalid for reasons such as:

  • The item was not delivered
  • The order was cancelled but the item was still delivered
  • The item was returned to the retailer

The customer is essentially using loopholes in order to steal from the merchant. Absorbing these costs of fraudulent customers can hugely impact the ecommerce business which is why an eCommerce fraud protection solution is the best way to go about addressing and avoiding this problem.

There are a couple of solutions that merchants have at their disposal, each with their pros and cons. With SaaS solutions, you will have to monitor the entire process yourself. While it is much more flexible and cheaper than fully managed programs, it can also be less efficient due to its lack of support and inconsistencies. With fully managed systems like what Riskified offers, you will have the opportunity to let go entirely and focus your energy into other areas of the business.

Company: Riskified
Email: support@riskified.com 
Website: https://www.riskified.com/

SOURCE: Riskified

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