Riskified, a New York Stock Exchange-listed company specialising in e-commerce fraud and risk intelligence, has recently introduced Auth Rate Enhance.
This innovative solution is designed to improve conversion rates and maximise e-commerce revenues for merchants by optimising approval rates and card issuer authorisation rates, ensuring more online sales are captured.
In the fiercely competitive e-commerce sector, merchants are constantly seeking ways to attract and retain customers. However, a significant challenge emerges when card issuers decline payments—a situation that affects approximately 15% of e-commerce orders. Riskified’s analysis suggests that up to 70% of these declined payments are from legitimate customers mistakenly identified as too risky. This issue has led to substantial financial losses, with false declines projected to cost US merchants $157m and global losses surpassing $443bn, overshadowing the estimated $48bn loss from actual e-commerce credit card fraud.
Riskified’s core mission is to empower businesses to achieve e-commerce growth by removing risk. The company offers guaranteed protection against chargebacks, combats fraud, and abuse at scale, and enhances customer retention through its AI-powered fraud and risk intelligence platform. This platform provides real-time decisions and in-depth insights by analysing each interaction’s unique individual behind it.
Auth Rate Enhance works by pre-screening orders and enriching the analysis with data points that instil confidence in issuers like Capital One to authorise more digital orders. It also allows for flexible configuration, either pre-authorisation or a combined approach that integrates pre-authorisation risk assessment with post-authorisation feedback. This strategy not only optimises conversion rates but also reduces insult rates and transfers chargeback risk to Riskified, tailored to the specific needs of different business segments.
Jonathan Borman, Head of Fraud Partnerships at Capital One, said, “Our integration with Riskified allows us to meaningfully increase our authorisation rates by leveraging data from their merchant network, resulting in superior experiences for consumers shopping with Riskified merchants.”
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