- 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
Women's online retail
Story
In our discovery meeting with the CEO/Founder, we found a number of deficiencies in their current process.
Our client was receiving a number of fraudulent transactions monthly resulting on average, losing $2,345 monthly cost of the product, and $275 chargeback fees and the amount of $5,870 sales. Equal to $101,880 annually on chargebacks.
Our client was paying higher than normal processing fees based on their industry and higher risk of transactions. They have been with their current Merchant processor for the past 3 years.
How we helped
We optimized the interchange and processing fees, In addition, we implemented multiple fraud prevention systems that reduced fraudulent Chargebacks by 78% Monthly in 2021 in comparison to 2020.
We helped them reduce 15% of their current processing fees as well as implemented new online security features with detailed reporting with their current processor.
Our client utilized our watchlist service since 2020, as a result, they have received one rate increase which was flagged on our end and our client was able to receive a refund from their processing company.
Result
Avrage Monthly CreditCard Valume: $1,200,000 USD
Annual processing valume: $14,400,000 USD
- Annual saving $43,441 USD
- NO rate increase since 2020!
- Reduced chargebacks by 78%
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.
