As a business, it’s not enough to say you want to combat fraud. You have to actually do something about it before it happens.
That’s one of the messages that fraud-prevention company ClearSale has long been imparting to its 4,000 clients who seek to develop custom fraud solutions that align with their business goals.
Offering both technological and consulting platforms and services, Miami-based ClearSale blends advanced statistical technology with a massive team of specialized fraud analysts “for a balanced, real-world approach unlike anything else in the market. We deliver the highest order approval rates and the lowest false decline rates in the industry,” says Denise Purtzer, VP of Partnerships & Alliances, at ClearSale.
For their many clients processing orders online, which has seen an incredible surge due to the pandemic accelerating ecommerce growth, ClearSale says many stores want an easy and frictionless shopping experience which fraud protection can help develop.
The devastating effect and types of fraud
The challenge of fighting fraud is reaching an intense period, where many businesses have noted the fraud rate increasing as more bad actors have stepped up their criminal activities. According to a PwC report, nearly half of the businesses surveyed in 2020 had suffered at least one fraud – with an average of six per company.
“The total cost of these crimes? An eye-watering US$42 billion. That’s cash taken straight off companies’ bottom line. And 13% of those who’d experienced a fraud said they’d lost US$50 million-plus,” the report goes on to say.
As alarming as these figures are, the issue isn’t always stopping the C-suite in their tracks.
“One thing that we see often with brands of all sizes is that they don’t realize how much their fraud prevention practices are costing them in lost revenue.For every $1 in losses due to credit card fraud, brandss lose $13 to false declines, or good orders that get rejected on suspicion of fraud.”
Purtzer also identifies three main areas of ecommerce fraud brands will want to keep front of mind in their risk mitigation strategies:
- Card-not-present fraud: Most commonly occurs when a brand accepts payment from a criminal who is using a stolen credit card. The customer that owns the credit card will dispute the transaction, ask the bank to close the card, and get credited for the amount of the fraudulent purchase. This typically results in a chargeback to the brand.
- Chargebacks: Initially created to protect consumers, they have become a route to game the system. Chargeback fraud happens when a customer intentionally files fraudulent chargebacks with the goal of keeping the products or services they ordered while also receiving a refund for the full transaction amount.
- Friendly fraud: Also known as “accidental fraud,” this often occurs when a customer doesn’t keep meticulous records of their credit card purchases or simply doesn’t recall a purchase on their statement that they did in fact make. These customers don’t intend to be deceitful; they forgot they made the purchase.
More often than not, enterprise businesses will state they have their fraud under control, Purtzer notes. “However, what they may not know is that customers are being turned away in large numbers due to over-zealous fraud systems and narrow views of a dynamic fraud landscape.”
Boasting an impressive 99% customer retention rate, ClearSale has been earning accolades in their space, such as taking home the Top Performer award in the Fraud Prevention Software category by FeaturedCustomers in their Summer 2021 Customer Success report.
The benefits of building smart partnerships
As a valued and strategic Bold Commerce partner, ClearSale technology is directly integrated into Bold Checkout.
By bolstering the order processing back-end, the checkout experience is optimized, from cart to purchase. Bold and ClearSale offer a streamlined checkout process, minimal data entry, and multiple payment options without worry that you are leaving your store vulnerable to fraud, says Purtzer.
She adds, “We are thrilled to partner with Bold Commerce to offer convenience, optimization, and a streamlined approach to fraud prevention. ClearSale's integration into Bold Checkout gives brands peace of mind knowing that not only will fraud attempts be neutralized, but that no good orders will be declined. Together, we ensure that your store maximizes conversions and boosts revenue, all while offering the customer experience that your shoppers deserve.”