Nick Belenky, from CardinalCommerce, shares some helpful tips that you can use to prepare your online business for the new year and ways to optimize the consumer experience while:
- reducing fraud
- reducing fraudulent chargebacks
- cutting out manual review
- and accepting more good transactions
2. Proprietary & Confidential - CardinalCommerce
nbelenky@cardinalcommerce.com
https://www.linkedin.com/in/nickbelenky/
Our Speaker: Nick Belenky
I work with online merchants and
partners in the industry to safeguard
the card not present (CNP) space
for our customers.
3. Proprietary & Confidential - CardinalCommerce
• Fraud and Chargebacks
• Streamlining Costs
• Delighting the Consumer
What are your priorities for your webstore for 2018?
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• Chargebacks are up!
• Holiday sales increase
• Year over year sales increase
• Industry trends:
Fraud and Chargebacks
CNP declined sales
17% growth
CNP approved sales
14% Growth
CNP fraud
22% growth
5. Proprietary & Confidential - CardinalCommerce
The Aftermath of Chargebacks
Staffing for Representment
(Delivery receipts, proof of billing /
shipping address match)
You Cannot Win them All
(Select which chargebacks to fight,
review reason codes from Mastercard
and Visa )Evidence Collection
(Delivery receipts, proof of billing /
shipping address match)
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Your acquirer can tell you if representment
makes sense
You only have a limited amount of time to
dispute a chargeback
Forecast chargebacks just like forecasting
returns
Each chargeback fight costs you money,
build a business case
The Aftermath of Chargebacks II
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Manual review
reduces profits
Does not scale
More fraud incurred
More false declines
Solving for Chargebacks
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3-D Secure
Fraud Tool
Review
Exceptions
Only
Fight Fraud in Layers
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Q1 Fraud Rush
Chargeback
representment for
holiday
transactions
Expect 90 days of
high volume
Streamlining Costs
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Sales growth
increases
your
interchange
bill
3-D Secure
can reduce
interchange
Shave up to
20 bps
More Sales = More Interchange
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Focus on your business instead
Automate Fraud Review
CNP declined sales
17% growth
CNP approved sales
14% Growth
CNP fraud
22% growth
50% of merchant declined transactions are GOOD orders!
12. Proprietary & Confidential - CardinalCommerce
• Surviving the checkout experience
• Are your Customers satisfied with your checkout experience?
Delighting the Customer
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Bad
checkout
experience
Lose the
sale
Lose the
customer
Market for
your
competition
Insulting the Customer
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• Bank declining orders, leaves money and sales on the table
• Cardinal can help shrink this gap
Authorization Rates and the Acceptance Gap
The “Acceptance Gap”
represents billions of
dollars in potential revenue
1Excludes insufficient funds declines
Source: VisaNet eCommerce data for US for FY16. YoY growth based on FY16 vs. FY15. Fiscal Year (FY) is Oct-Sept.
15. Proprietary & Confidential - CardinalCommerce
• Merchant reversals are often caused by rigid fraud prevention systems
• With minimal flexibility in place systems often end up turning away legitimate consumers,
possibly for good due to not enough data being shared between the consumer and the bank
Merchant Reversals