Case Study: Ohio Power Tool

Ohio Power Tool leverages Signifyd's Guaranteed Fraud Protection to accept more orders without manual review, allowing them to serve more customers with unique equipment and tool needs.

90%

Reduction in Cases Reviewed

4%

Increase in Accepted Orders

0

Chargebacks

Ohio Power Tool leverages Signifyd's Guaranteed Fraud Protection to accept more orders without manual review, allowing them to serve more customers with unique equipment and tool needs.

Jay Amstutz credits his mother with driving Ohio Power Tool into the online sales business.  “In 1999,” says the company’s president, “she just said to me ‘I think the Internet is a thing that people will be using. Let’s get on it!’”  The site didn’t include e-commerce until 2003. “When we had our first site you couldn’t even buy anything,” says Amstutz. “It’s grown to more than half of our business.”

But with online sales came online fraud. “Over the years, it’s gotten way more sophisticated to the point where everything looks right, everything seems to be in line,” he says. “But then they try to do something [odd, like] re-route it mid-shipment. Or, they send it to another business that looks like a legitimate business.”

Before signing on with Signifyd, Ohio Power Tool tried to minimize what it spent to contain fraud. “We had subscription services that we would use to look up people’s information and a lot of them would come to me to approve,” says Amstutz. But this follow up could cost him a full day each week, or more. “It was a constant ‘make a phone call, wait for somebody to call back, and then I was in a meeting when the guy called back,” says Amstutz. “(And) there’s worry. Sometimes we’re sending product out that I didn’t check thoroughly… so it went out, and then it came back as fraudulent.”

“I think we also caused some frustration with some people that were legitimate customers where we may have denied people a sale – you know, not ship some stuff out, because it just looked suspicious – and so then we said, ‘ok, so you’re going to have to wire the money for this because you want to send this to another state. And they’re like ‘what? no, we’re not doing that.’” In some cases, he said, legitimate same-day orders could be delayed two days. That could kill a sale, for example, for a driver that’s needed right away to make holes in concrete.

Ohio Power Tool signed up with Signifyd’s Complete Guaranteed Fraud Protection in May of 2016. “We had been using Signifyd before that but we only used it when there were questions, which was a problem. So we had used just their scoring ability with the On Demand service.”

“(Now) I don’t even see most of the stuff. The process is just much quicker. We just go in and see if Signifyd has approved it, and if they have, then we ship it.”

“When there are issues, we will review those,” says Amstutz. “We’re dealing with a lot of construction companies that may be on a job site, or building a building before there’s even an address for the building. We could be sending the order to a job trailer. I’m sure we provide some pretty unique challenges for Signifyd’s review team.”

Before Signifyd, Ohio Power Tool was considering adding another person to process online orders, but now they’re looking to hire another person to answer questions and provide customer service. “Ensuring our people aren’t stressed out about stuff is good. I don’t really want to put undue stress on my people. We’re paying several thousand dollars a month to Signifyd and I’m happy to do so.”

“It just makes all of our orders process that much quicker,” says Amstutz. “Officially, we say our cutoff is at 1 o’clock for new orders each day, but really, if we get an order at 4 o’clock we can now process it and send it out the same day. And that helps our customers…we can serve all of them better.”

“Working with (Signifyd) gives us peace of mind and it also just helps us do our job better because we no longer have to worry fraud. We don’t need to lose time or money on bad orders and we can spend more time focused on good orders, processing things correctly and moving the business ahead – the way it should be done.”

  • Before Scenario
    • Resource hours required for manual review process
    • Complete liability for fraud and chargebacks
    • Unable to ship out quickly which resulted in orders lost, especially from professional customers
  • Goals
    • Eliminate chargebacks and chargeback losses
    • Accept more orders without increasing manual reviews
    • Support rapid growth of online business selling directly to professionals
  • Signifyd Proposal
    • Leverage Signifyd’s Guaranteed Fraud Protection to eliminate chargebacks and financial losses due to fraud
    • Use Signifyd’s machine learning to reduce manual reviews
    • Work with Signifyd’s risk analysts to evaluate questionable orders and accept as many orders as possible
  • After Scenario
    • 90% Reduction in Cases Reviewed
    • 4% Increase in Accepted Orders
    • 0 Chargeback Losses
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Signifyd’s Reimbursement Policy

What’s Covered

We cover chargebacks connected with fraud or unauthorized charges, often due to:

  • Stolen account information (account takeover)

  • Stolen financial information

What’s Not Covered

We do not cover chargebacks due to errors made by the merchant, card processor, or shipper, like:

  • Item not received, not as described, or defective/broken

  • Refund not processed

  • Duplicate charges

As long as the chargeback meets the above criteria, we'll cover it and reimburse the full chargeback amount, plus any associated fees.

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