- Monday - Friday 9 AM - 5 PM
- 43300 Southern Walk Plz #166 Ashburn, VA 20148, USA
- 515 Consumers Rd #210 North York, ON, M2J4Z2, CANADA
- (+1) (202) 902-6226
High-end jewellery brand
Story
During our discovery meeting with the CFO, our client expressed significant concern regarding the number of fraudulent transaction attempts during the past 12 months, as well as the high costs associated with payment processing.
How we helped
The team of online retail security consultants analyzed the client’s ecosystem and made the following modifications in order to increase productivity, reduce security threats, and increase sales.
For final approval, our team presented the top three pricing models. We negotiated with several payment processors on behalf of our client, including the one they were using. A national consumer finance company provided the store’s customers with on-the-spot approval financing.
Payment gateway security has been upgraded to AVS and 3D Secure. The interchange has been optimized according to the type of transaction. We also implemented our new A.I. Online security features, which reduced fraudulent chargebacks by 78% monthly. Furthermore, we recommended several methods to safeguard the client’s inventory and prevent future fraud attempts. A Smart WIFI/4G terminal was installed at the retail store.
Overall, this upgraded platform provides management with detailed reporting and employee management, resulting in increased productivity, increased revenue, and, most importantly, greater customer satisfaction. This is achieved while decreasing operating costs and fraudulent transactions.
Our client’s sales have increased over the past year. As a result of our efforts, our client has been able to reduce their processing fees by 30%. We also implemented a new consumer financing platform, which led to a 27% increase in sales.
Result
Avrage Monthly CreditCard Valume: $2,765,000 CAD
Annual processing valume: $33,1800,000 USD
- Annual saving $51,600 CAD
- NO rate increase since 2020!
- Reduced chargebacks by 88%
What we learned?
Over the past 24 month, online payment processing have increased by 800% due to the COVID19, which is created a fantastic opportunity for retailers. However, in the past 24 months, we have noticed fraudulent online credit card transactions have increased by 48%.
Online businesses tend to pay a higher rate because of the type of transaction they are receiving, which is known as CNP or Online transaction. There is also more risk associated with card not present transactions, which can threaten any online business.
Online businesses stay with their processor by average of two years more than any other industry because of the complexity and cost of integration and chance of downtime for the operation. This also results in a higher processing fee paid by the merchant.