When One Chargeback Can Bankrupt a Merchant

With an improving economy and a greater selection to purchase online, the number of high end merchants on the web are swelling. Consumers can now choose from a near limitless supply of merchants selling luxury handbags, designer shoes and engagement rings. With holidays such as Mothers Day and Valentines Day accounting for an overwhelming majority of their sales, online jewelry merchants, in particular, have to compete dollar to dollar to fight for every customer who can easily buy online from any store. But in the scramble to attract and retain customers, jewelry merchants may be inadvertently opening the gates to fraudsters looking to blend themselves into the herd of legitimate customers to steal from them.

Many jewelry merchants employ a variety of measures to verify the identity of their customers. Some send over forms that customers must fill out and email back. Some call their customers and ask them a series of questions. Some merchants will only accept payment through PayPal, or use a marketplace like Amazon or Ebay.

Merchants, after receiving back their paperwork or after speaking to the customer on the phone, will often feel comfortable enough to ship out their product and close out the transaction. But 30-60 days later, as the chargebacks come in, merchants find themselves flabbergasted that the person they interacted with and verified still ended up being a fraudster.

Fraudsters are more than happy to speak on the phone or send back forms when dealing with expensive items such as jewelry.  What most merchants lack is a complete profile of the customer that Signifyd can provide.

With Signifyd, merchants are able to completely eliminate the fear of chargebacks. By providing detailed information and history on addresses, IP’s, emails, phone numbers, social media and much more, Signifyd gives merchants a comprehensive analysis of every order. Merchants can quickly decide if they wish to ship or decline an order. Further, merchants can purchase insurance from Signifyd, allowing them to ship to their customers knowing that Signifyd will fully reimburse them for any fraud within 24 hours of a chargeback.

If you are a merchant and you are struggling with fraud or the fear of fraud but have difficulty identifying good orders from bad you are not alone! Contact Signifyd at sales@signifyd.com and we will be happy to give you a demo and answer any questions that you might have.

Signifyd

Signifyd, the world’s largest provider of guaranteed fraud protection, enables ecommerce retailers to provide friction-free buying experiences by shifting fraud liability away from merchants.

Related Posts
-

Subscribe To The Newsletter

Popular Posts
-