Before we review this client's outcome, start with the prerequisites for an effective fraud program. You need baseline risk signals from your payment processor or fraud tool, plus a decisioning layer that triggers additional verification when risk increases.
Next, we need to open up the business to more transactions by tuning down any fraud rules. For our example, a client used Stripe Radar for fraud prevention. They used to block transactions with a score of over 80 and manually reviewed anything between 60-80. Instead, they decided to disable the manual review completely and blocking functions. As security is usually a balancing act between risk and reward this action would need some compensating controls. They looked around for other fraud tools and verification systems but found them all too expensive. They talked to the managed services and insurance solutions but balked at the 1-2% revenue costs. Next, they looked for other data providers and ID verification tools. They wanted all the latest technology and tools to deploy against fraudsters but didn’t want to be stuck in big contracts for all their transactions. Stripe accurately scores many sales, but they wanted to optimize further and stop wasting time on reviews. Their store catered to customers worldwide, and hiring a team to review 24/7 was too costly.
Cost-Conscious Verification
In came Trust Swiftly with the ability to provide over 10 completely automated verification options. Instead of trying to bundle multiple tools together, they were able to leverage one platform that could adapt to any fraud. They knew most of their customers would be turned off by ID verifications and couldn’t justify the high prices for other solutions. They also didn’t want to add in the complexity of development to integrate any of the tools. The majority of their orders were good, so it didn’t justify putting more manual reviews. Instead, they were able to direct the higher risk orders to Trust Swiftly to complete verification. The costs remained low, and the client saw a decrease in their chargeback rate. Customer satisfaction also increased as declines were met with acceptance. They also were able to respect their customers’ privacy by allowing backup verification methods for people who were not comfortable with sharing personal information. Overall, the implementation was a success, and they are more confident in their security of transactions with Trust Swiftly than only Stripe Radar.
You will find that existing verifications do not optimize for both customer and business experience. Typically, the costs of many verification solutions often do not justify their cost. They require expensive contracts or minimum spends which might be more than if you risked more fraud. They don’t account for customer privacy concerns and provide only one path forward, which might be a lost customer for life. Using Trust Swiftly can get you to the confidence levels required where you block less than 1% of transactions and spend no time reviewing orders.