Riskified - Detailed Review
Finance Tools
Riskified - Product Overview
Riskified Overview
Riskified is a pioneering company in the AI-driven finance tools category, specializing in fraud and chargeback prevention for eCommerce businesses.
Primary Function
Riskified’s primary function is to protect eCommerce merchants from fraud and chargebacks using advanced technologies such as behavioral analysis, elastic linking, proxy detection, and machine learning. The platform makes real-time decisions to manage chargebacks, secure accounts, and refine operational policies, ensuring a secure shopping environment for customers.
Target Audience
The target audience for Riskified includes eCommerce businesses of all sizes, ranging from small boutique retailers to large multinational corporations. Specifically, it caters to online retailers, travel companies, and businesses in the digital goods sector, among others, who are looking to prevent fraud, increase approval rates, and improve their overall customer experience.
Key Features
AI-Powered Fraud Management
Riskified uses machine learning and big data to detect and mitigate fraudulent activities more effectively than traditional methods. It can approve more orders that might otherwise be declined, thereby increasing revenue and reducing false declines.
Chargeback Guarantee
Riskified backs transactions approved by its technology with a 100% money-back guarantee in the event of fraud, shifting the liability from the merchant to Riskified.
Real-Time Data Analytics
The platform leverages real-time data analytics to make instant decisions, validating orders in milliseconds and reducing the need for manual reviews.
Policy Protect and Dispute Resolve
Riskified offers solutions to prevent refund, promo, and reseller abuse, as well as simplify chargeback management through a single smart platform.
Global Merchant Network
Drawing from a vast global merchant network, Riskified can detect fraud 2-3 times better than competitors in head-to-head pilots.
Conclusion
By combining these features, Riskified helps eCommerce merchants maximize revenue, reduce operational costs, and improve customer satisfaction, all while providing a secure and frictionless shopping experience.
Riskified - User Interface and Experience
Ease of Use
Simplicity and Intuitiveness
Users have consistently highlighted the simplicity and intuitiveness of the Riskified interface. It is described as easy to use, with all pertinent information readily available where needed. This makes it simple for users to filter through thousands of orders to identify general trends and make informed decisions.User-Friendly Interface
Dashboard Accessibility
The platform’s dashboards are very user-friendly, allowing users to monitor key performance indicators (KPIs) and service level agreements (SLAs) with ease. The interface is structured in a way that facilitates smooth adoption within the organization, even for those who may not be tech-savvy.Real-Time Data Analysis
Timely Decision-Making
Riskified provides real-time data analysis, which is presented in a clear and understandable format. This real-time capability helps users stay ahead of potential risks and make timely decisions, enhancing the overall risk management process.Customer Support
24/7 Availability
The support provided by Riskified is also a significant aspect of the user experience. Users appreciate the attentiveness and responsiveness of the support team, which is available 24/7. This ensures that any issues or concerns are addressed promptly, contributing to a positive user experience.Minor Issues
Occasional Maintenance
While the overall user experience is positive, some users have noted minor issues such as occasional maintenance affecting certain aspects of the platform, like loading screens, and some features like the “second look” not working properly. However, these are relatively rare and do not significantly detract from the overall usability of the platform.Conclusion
In summary, Riskified’s user interface is characterized by its ease of use, clear and intuitive design, and strong support from the customer service team. These features collectively contribute to a positive and effective user experience for eCommerce merchants. Riskified - Key Features and Functionality
Riskified Overview
Riskified is an advanced AI-driven fraud and risk intelligence platform that offers a comprehensive set of features to help eCommerce businesses prevent fraud, reduce chargebacks, and optimize their payment processes. Here are the main features and how they work:
Real-Time Fraud Detection
Riskified uses machine learning algorithms and big data analytics to assess the risk level of every transaction in real-time. This allows merchants to approve legitimate orders and block fraudulent ones immediately, preventing financial losses and ensuring a secure shopping environment.
Machine Learning Algorithms
The platform employs advanced machine learning algorithms that continuously learn and adapt to new fraud patterns and trends. This ensures that the system stays ahead of fraudsters and provides accurate risk assessments for each transaction.
Chargeback Guarantee
Riskified offers a 100% chargeback protection guarantee on every order they approve. This means that if a chargeback occurs on an approved transaction, Riskified takes on the fraud liability, reducing costs and protecting the merchant’s revenue.
Behavioral Analysis
Riskified analyzes customer behavior, including factors such as typing patterns, mouse movements, and other behavioral biometrics, to verify the identity of customers and detect suspicious behavior. This helps in identifying and flagging potentially fraudulent transactions.
Device Fingerprinting
The platform uses device fingerprinting to collect and analyze data about the devices used for transactions. This includes information about the device’s characteristics, which helps in verifying the identity of customers and detecting fraudulent activities.
Transaction Scoring
Riskified assigns a risk score to each transaction based on various factors, including customer behavior, transaction data, and device information. This score helps merchants make informed decisions about whether to approve or decline a transaction.
Automated Decisioning
The platform automates the decision-making process for transactions, allowing merchants to streamline their operations and reduce manual review processes. This automation helps in avoiding missed chargeback deadlines and improving overall efficiency.
Customizable Rules Engine
Riskified offers a customizable rules engine that allows businesses to tailor their fraud prevention strategies according to their specific needs and risk tolerance. This flexibility ensures that the fraud prevention measures align with the merchant’s business policies.
Global Data Network
The platform leverages a global data network to gather insights from millions of transactions. This network helps in identifying and mitigating fraud risks more effectively by providing a broader perspective on fraudulent activities.
Account Takeover Protection
Riskified includes features to prevent unauthorized access to shopper accounts. It ensures frictionless access for legitimate customers while blocking malicious account takeover attempts, thereby building trust and security for the merchant’s customers.
Multi-Layered Security
The platform provides multi-layered security measures to protect transactions from various types of fraud. This includes a combination of behavioral analysis, device fingerprinting, and transaction scoring to ensure comprehensive security.
Seamless Integration
Riskified integrates seamlessly with various eCommerce platforms and payment providers. This integration enables businesses to implement the fraud prevention and payment optimization solutions without disrupting their existing operations.
Comprehensive Reporting and Fraud Insights Dashboard
The platform offers comprehensive reporting and a fraud insights dashboard that provides merchants with detailed analytics and insights into their transactions. This helps in making data-driven decisions and optimizing fraud prevention strategies.
API Access
Riskified provides API access, allowing businesses to integrate the platform’s features into their existing systems and workflows. This ensures flexibility and ease of use for merchants.
Payment Gateway Integration
The platform integrates with various payment gateways, enabling businesses to optimize their payment processes and reduce the risk of fraudulent transactions. This integration also helps in streamlining payment flows and providing alternative payment methods.
Dispute Resolution
Riskified helps businesses dispute chargebacks and recover lost revenue. By providing detailed evidence and documentation, the platform assists merchants in successfully challenging chargebacks and protecting their bottom line.
PSD2 Optimization
The platform optimizes transactions to minimize Strong Customer Authentication (SCA) requirements while safeguarding the risk profile with card issuing banks. This reduces friction and drives conversion rates for merchants.
Conclusion
In summary, Riskified’s AI-driven features work together to provide a comprehensive solution for fraud prevention, chargeback protection, and payment optimization. By leveraging machine learning, behavioral analysis, and global data networks, Riskified helps eCommerce businesses maximize their revenue, enhance customer satisfaction, and mitigate the risks associated with fraudulent activities.
Riskified - Performance and Accuracy
Evaluating Riskified’s Performance and Accuracy
Evaluating the performance and accuracy of Riskified in the finance tools AI-driven product category involves a close look at its technology, services, and customer outcomes.
Performance
Riskified’s performance is heavily reliant on its advanced machine learning algorithms and big data analytics. Here are some key points:
Real-Time Decisions
Riskified’s platform can assess the risk level of each transaction in real-time, allowing for instant decisions on whether to approve or decline a transaction. This capability is crucial for providing a frictionless customer experience and reducing the risk of fraud.
Machine Learning and Predictive Analytics
The platform uses machine learning features to analyze hundreds of relevant data attributes and draw insights from over a billion historical transactions. This ensures accurate risk assessments and helps in identifying and preventing fraudulent activities.
Continuous Monitoring and Adaptation
Riskified’s system continuously monitors transactions and adapts its algorithms to emerging fraud patterns and trends. This ensures that the platform remains effective against new and evolving threats.
Accuracy
The accuracy of Riskified’s fraud prevention and risk management solutions is a significant aspect of its performance:
High Approval Rates
Riskified helps merchants increase their approval rates by reducing false declines. This is achieved through advanced algorithms that accurately distinguish between legitimate and fraudulent transactions.
Chargeback Protection
Riskified offers a chargeback guarantee, which means they help businesses dispute and recover from fraudulent chargebacks. This reduces financial losses and protects the merchant’s revenue.
Customizable Rules Engine
The platform allows businesses to customize their fraud prevention strategies according to their specific needs and risk tolerance, which enhances the accuracy of the decisions made.
Limitations and Areas for Improvement
While Riskified’s technology and services are highly advanced, there are some potential limitations and areas for improvement:
Scalability Issues
As seen in the case study with CockroachDB, Riskified faced scalability issues with their database infrastructure, particularly with a single writer server limiting the number of transactions per second. However, they addressed this by migrating to a more scalable database solution.
Market-Specific Challenges
The optimization problem in fraud prevention can vary significantly across different markets and product offerings. For instance, a merchant might face higher fraud rates in certain regions, which requires more nuanced and market-specific strategies.
Continuous Improvement
While Riskified’s models are self-optimizing, there is always room for improvement. The company continuously invests in research and development to enhance its models and stay ahead of new fraud patterns.
Customer Outcomes
Riskified’s performance and accuracy are reflected in the positive outcomes for its customers:
Higher Revenue
By increasing approval rates and reducing false declines, Riskified helps merchants boost their revenue. For example, a 1% increase in approval rates can translate into significant sales increases.
Improved Customer Satisfaction
The frictionless and secure shopping experience provided by Riskified leads to higher customer satisfaction and loyalty.
High Customer Retention
Riskified boasts a 99 % customer retention rate, indicating high satisfaction among its clients with the services provided.
In summary, Riskified’s performance and accuracy are driven by its advanced technology, real-time decision-making capabilities, and continuous adaptation to new fraud patterns. While there are areas for improvement, such as addressing scalability and market-specific challenges, the overall impact on customer outcomes is positive and significant.
Riskified - Pricing and Plans
Riskified Pricing Structure
Riskified’s pricing structure is designed to be flexible and scalable, particularly suited for ecommerce businesses of various sizes. Here are the key points to consider:
Pricing Model
Riskified operates on a pay-as-you-go model, which means there are no setup fees or monthly commitments. The cost is based on a percentage per transaction, starting at 0.4% per transaction.
Variables Affecting Pricing
The pricing structure responds to several variables, including:
- Annual Sales Volume: Pricing tiers are based on annual sales volumes, such as under $3 million, $3-10 million, $10-100 million, and greater than $100 million.
- Industry Niche: Different industries may have varying pricing due to their unique risk profiles. For example, luxury goods merchants might pay more than those in the sportswear sector.
- Scalability: As your business scales, the monthly costs will increase due to the higher number of transactions, but Riskified may offer reduced percentage fees for merchants with high growth potential.
Features and Plans
While Riskified does not have traditional tiered plans, here are some of the key features and services included:
- Chargeback Guarantee: Riskified provides a 100% chargeback guarantee, meaning you are not liable for fraudulent transactions approved by their AI algorithms.
- Dispute Resolve: This feature manages and tracks chargebacks, including automated chargeback dispute submissions and optional manual control.
- Policy Protect: Identifies system abusers and rewards loyal customers, detects bots and fake accounts, and protects stock and revenue from unauthorized resellers.
- Account Secure: Protects against Account Takeover Fraud (ATO) using machine learning models to compare current and past account behavior.
- PSD2 Optimize: Helps comply with PSD2 regulations without compromising the payment experience, providing data on transaction risk analysis and authorization rates.
Integrations
Riskified integrates with major ecommerce platforms such as Shopify, Stripe, and Magento, as well as the Authorize.Net gateway, making it accessible to a wide range of businesses.
Free Options
There are no free subscription options available. However, potential customers can request a demo before committing to the service.
In summary, Riskified’s pricing is highly customizable and dependent on your business’s specific needs and volume. It offers a comprehensive suite of fraud prevention and chargeback management features without fixed monthly fees or setup costs.
Riskified - Integration and Compatibility
Riskified Overview
Riskified, an AI-driven fraud prevention and chargeback protection platform, integrates seamlessly with a variety of eCommerce tools and platforms to provide comprehensive fraud management and enhanced customer experiences.
Integration Options
Riskified offers several integration pathways to cater to different merchant needs:
API Integration
This is the most flexible option, allowing developers to integrate Riskified’s fraud prevention and chargeback protection services into any platform or system. This method is highly customizable and can be adapted to fit various order flows, including pre- or post-gateway authorization.
eCommerce Platforms
Riskified has specific integrations with major eCommerce platforms such as Shopify, Magento, and Salesforce Commerce Cloud (SFCC). These integrations are well-documented and supported by Riskified’s integration and data engineers.
Commercetools
Riskified has a partnership with commercetools, enabling merchants to integrate Riskified’s Chargeback Guarantee solution. This integration streamlines merchant onboarding and allows for asynchronous fraud decisions post-payment authorization, which can be set to manually review or automatically confirm/cancel orders based on Riskified’s insights.
Whippy AI
The integration with Whippy AI allows merchants to leverage Riskified’s fraud detection and chargeback protection within their existing workflow. This integration enhances security, improves customer experience, and streamlines communication regarding fraud prevention and chargeback issues.
Compatibility
Riskified is compatible with a wide range of systems and order flows, making it versatile for various merchant setups:
Multiple eCommerce Platforms
Besides the mentioned platforms like Shopify, Magento, and SFCC, Riskified also integrates with other major eCommerce platforms such as SAP Commerce Cloud and Adobe/Magento.
Custom Workflows
The platform can operate pre- or post-gateway authorization, allowing it to fit into different order flows and merchant workflows.
Cloud and Server Options
For the commercetools integration, merchants can choose to host the connector as a standalone server or as a server-less cloud function, providing flexibility in deployment.
Key Features and Benefits
The integrations with Riskified bring several key benefits, including:
Advanced Fraud Detection
Riskified uses machine learning to identify suspicious activities and prevent fraudulent transactions in real-time.
Chargeback Protection
Merchants are shielded from financial losses due to chargebacks, ensuring they are covered in case of disputed transactions.
Seamless Customer Experience
Integrations with platforms like Whippy AI enable frictionless customer communication regarding potential fraudulent activities or chargeback issues, enhancing trust and satisfaction.
By integrating Riskified with these various tools and platforms, merchants can significantly enhance their security measures, improve customer experiences, and optimize their payment and order fulfillment processes.
Riskified - Customer Support and Resources
Customer Support
For immediate assistance, users can contact Riskified through their toll-free number: (855) 622-5868. This line is available for addressing various issues, including payment denials and other fraud-related concerns. In addition to phone support, Riskified provides multiple email channels for different inquiries, such as customer service, events/guest relations, general information, and sales/reservations. This allows users to direct their questions to the most relevant department.Help Center and Resources
Riskified has a comprehensive Help Center that offers detailed information and guides on using their platform. This resource helps users troubleshoot common issues and understand the various features and tools available to them.Control Center and Dashboards
The platform includes a Control Center with real-time dashboards that provide visibility into performance metrics, shopper behavior, fraud trends, and payment issues. These tools empower fraud analysts and customer service teams to make informed decisions and interact effectively with customers.Global Support
Riskified has offices in both the US and EU, ensuring that users have access to support across different regions. The EU representative office is located in Dublin, Ireland, while the US office is in New York.Case Studies and Testimonials
Riskified offers case studies and testimonials from existing clients, such as Finish Line, Rue Gilt Groupe, and Gametime. These resources provide real-world examples of how the platform has helped other businesses reduce chargebacks, increase transaction success, and expand into new markets.Continuous Improvement and Support
The company has a team of researchers, developers, and data scientists who continuously work to improve the platform’s performance. This ensures that users benefit from the latest advancements in fraud prevention and risk management. By providing these support options and resources, Riskified aims to ensure that its users can effectively manage fraud, enhance customer satisfaction, and drive business growth. Riskified - Pros and Cons
Advantages
Comprehensive Fraud Protection
Riskified offers a holistic fraud prevention strategy powered by advanced AI models and machine learning algorithms. It examines over 480 data attributes per order, detecting fraud 2-3 times more effectively than competitors.Chargeback Guarantee
One of the standout features is the 100% chargeback guarantee, which assumes liability for chargebacks, providing cost predictability and confidence in approving more orders. This guarantee has significantly reduced chargebacks for merchants, such as an 84% reduction for Forever New.Scalable and Flexible Pricing
Riskified operates on a pay-as-you-go model, starting at 0.4% per transaction, with no setup fees or monthly commitments. This model is particularly beneficial for businesses scaling their operations, as it allows for seamless revenue growth without the need to upgrade payment plans.Real-Time Decisions and Performance Control
The platform makes real-time decisions using a decisioning engine that assesses hundreds of data attributes. It also features unsupervised AI that detects anomalies and flags suspected fraud rings, ensuring quick responses to emerging threats.Enhanced Customer Experience
Riskified aims to provide frictionless payment processes, ensuring that legitimate customers are not hindered by false declines. The platform’s accuracy in identifying legitimate orders helps in maintaining high approval rates without compromising on security.Industry-Specific Models
Riskified’s models are customized for different industries and types of goods, ensuring high accuracy in fraud detection and policy abuse identification. This customization is backed by a large team of researchers, developers, and data scientists.Integration and Insights
The platform integrates well with major eCommerce platforms like Shopify and provides detailed insights into transaction trends and fraud patterns through its Control Center dashboards. This helps merchants and their teams to better manage fraud and customer interactions.Disadvantages
Initial Setup Time
Some merchants have reported that Riskified requires more initial setup time to customize compared to other solutions like Forter. This can be a temporary inconvenience but is necessary for the platform to learn the specific customer habits and fraud patterns of the business.False Declines
While Riskified’s AI models are highly accurate, there can be instances of false declines, especially during the initial period as the models learn the business’s customer habits. However, this issue tends to diminish over time as the models become more familiar with the business’s data.Higher Costs for High-Value Goods
Riskified’s pricing can be higher for merchants in industries with high-value goods, such as luxury goods. This is due to the varying risk profiles and industry niches that influence the pricing structure.Limited Control Over Order Reviews
The chargeback guarantee, while beneficial, can limit the merchant’s control over order reviews. This might lead to a higher rate of false declines as the system prioritizes fraud prevention over manual review. In summary, Riskified offers a powerful and scalable fraud prevention solution with a strong focus on AI-driven decision-making and a comprehensive chargeback guarantee. However, it may require more initial setup time and could result in higher costs for certain industries, along with the potential for false declines during the initial learning phase. Riskified - Comparison with Competitors
Unique Features of Riskified
- Comprehensive Data Analysis: Riskified’s AI-powered decisioning platform examines over 480 data attributes per order, enabling it to detect fraud 2-3 times more effectively than competitors.
- Chargeback Guarantee: Riskified offers a hassle-free chargeback reimbursement process, assuming financial liability for chargebacks and providing automatic reimbursements via API.
- Customizable Solutions: Riskified works closely with clients to customize their fraud detection models and workflows, ensuring they meet the specific needs of the business. This includes scalable decision-making and enhanced user-friendly web apps.
- High Client Retention: Riskified boasts a 98% annual dollar retention rate over the last five years, indicating strong client satisfaction and business continuity.
Competitors and Alternatives
Signifyd
Signifyd is another prominent player in e-commerce fraud protection, offering services like revenue protection, abuse prevention, and payment compliance. However, users have noted that Signifyd lacks a dedicated account manager and has issues with billing and chargeback reimbursements, which Riskified addresses more effectively.
Sift (formerly Sift Science)
Sift provides real-time machine learning fraud prevention solutions, automatically detecting fraudulent behavioral patterns. While Sift is innovative, users have reported that Riskified outperforms Sift in terms of approval rates, chargeback reduction, and scalable decision-making.
Fraud.net
Fraud.net is a fraud management platform powered by collective intelligence, AI, and a cloud-based infrastructure. It combines data from various sources to detect fraudulent activity in real-time, but it may not offer the same level of customization and client service as Riskified.
ClearSale
ClearSale offers fraud prevention and protection solutions for e-commerce businesses, including fraud scoring and chargeback management. While it is a strong competitor, it does not match Riskified’s comprehensive data analysis and chargeback guarantee.
Forter
Forter focuses on fraud prevention and protection in digital commerce, offering services such as fraud management and payment optimization. Forter is known for its machine learning capabilities but may not provide the same level of financial accountability as Riskified’s chargeback guarantee.
Accertify
Accertify specializes in digital identity and financial fraud risk management. It offers services within the financial technology sector but lacks the broad range of features and the high client retention rate seen with Riskified.
aiReflex by Fraud.com
aiReflex is a digital risk and trust solution that uses multi-layer defense and explainable AI to fight fraud. It offers features like transactional orchestration and adaptive rule engines but may not have the same level of industry-specific customization as Riskified.
Nethone
Nethone is a machine learning-based fraud prevention company that helps online merchants and financial institutions understand their users. While it is innovative, it does not offer the comprehensive suite of services, including chargeback guarantees, that Riskified provides.
Conclusion
In summary, while Riskified has several strong competitors, its unique features such as comprehensive data analysis, a hassle-free chargeback guarantee, and high client retention rate set it apart in the market. Each alternative has its strengths, but they may lack some of the key benefits that make Riskified a preferred choice for many enterprise e-commerce merchants.
Riskified - Frequently Asked Questions
Here are some frequently asked questions about Riskified, along with detailed responses:
What is Riskified and what services does it provide?
Riskified is a publicly traded company that offers software as a service (SaaS) for fraud and chargeback prevention. It specializes in eCommerce fraud prevention and chargeback management for online merchants, using technologies such as behavioral analysis, elastic linking, proxy detection, and machine learning to detect and prevent fraud.
How does Riskified’s technology work?
Riskified’s technology uses advanced AI and machine learning algorithms to analyze transaction patterns and provide real-time risk assessments. It can detect fraud with a high accuracy rate of 97.5% and offers a chargeback guarantee for approved transactions. The platform continuously learns and adapts to emerging fraud patterns across global eCommerce ecosystems.
What kind of protection does Riskified offer against chargebacks?
Riskified backs transactions approved by its technology with a 100% money-back guarantee in the event of fraud. This means merchants receive full chargeback compensation for fraudulent transactions that were approved by Riskified’s system. The company also offers different levels of chargeback coverage, including standard, premium, and enterprise options.
How is Riskified’s pricing structured?
Riskified offers a monthly subscription pricing structure with annual contract options. The base subscription starts at $2,500 per month for small to medium-sized merchants, with tiered pricing based on transaction volume. There is also a performance-based pricing model that includes a commission rate of 1.8% to 2.5% on successfully prevented fraudulent transactions. Custom pricing solutions are available for large-scale merchants processing over 50,000 transactions monthly.
What kind of support and guarantees does Riskified provide to its clients?
Riskified provides financial guarantees up to 100% chargeback coverage for approved transactions. This ensures that merchants are protected against financial losses due to fraud. Additionally, Riskified’s platform helps in reducing operational costs, decreasing chargebacks, and improving customer retention through its AI-powered fraud and risk intelligence.
Can Riskified help in improving transaction approval rates?
Yes, Riskified’s platform can help in increasing transaction approval rates. By using machine learning and automation, Riskified empowers fraud teams to grow approval rates by 4-8 percentage points, which can lead to increased revenue and better customer satisfaction.
How does Riskified handle new and emerging fraud patterns?
Riskified’s proprietary algorithms continuously learn and adapt to emerging fraud patterns. The platform analyzes global transaction data and recognizes cross-industry fraud patterns, ensuring that it stays ahead of new fraud schemes and tools, such as those involving Generative AI.
What kind of industries and companies does Riskified work with?
Riskified works with a wide range of industries and companies, including but not limited to eCommerce, retail, and technology. Some of its notable clients include Wayfair, Acer, Gucci, Lorna Jane, GoPro, and many more.
How does Riskified’s platform impact the operational efficiency of merchants?
Riskified’s platform helps merchants by reducing the number of manually reviewed orders, providing real-time transaction validation, and simplifying chargeback management. This allows merchants to focus more on increasing sales and improving customer experience rather than managing fraud.
What kind of ROI can merchants expect from using Riskified?
According to a Forrester TEI analysis, merchants that use Riskified may attain a significant return on investment, with some achieving up to a 594% ROI. This is due to the reduction in chargebacks, operational costs, and the increase in transaction success rates.
How does Riskified ensure the accuracy and reliability of its fraud detection?
Riskified’s AI-powered fraud detection system uses over 480 data attributes to make precise decisions. The platform has been shown to detect fraud 2-3 times better than competitors in head-to-head pilots, ensuring high accuracy and reliability in fraud detection.
Riskified - Conclusion and Recommendation
Final Assessment of Riskified
Riskified is a highly advanced AI-driven fraud and risk management platform that is specifically designed to support eCommerce businesses in preventing fraud, increasing transaction approval rates, and enhancing the overall customer experience.
Key Benefits
- Fraud Prevention and Chargeback Protection: Riskified uses machine learning algorithms to detect and prevent fraudulent activities in real-time, significantly reducing chargebacks and losses due to fraud. This is particularly beneficial for online retailers who often struggle with false declines and fraudulent transactions.
- Improved Transaction Approval Rates: The platform’s “Auth Rate Enhance” feature pre-screens orders and provides issuers with the confidence to authorize more digital transactions, leading to higher approval rates and increased revenue. For example, Lorna Jane saw a 13% lift in issuer authorization rates and a 98% reduction in chargebacks after implementing Riskified.
- Enhanced Customer Experience: By streamlining the online shopping process and reducing friction, Riskified helps businesses optimize their checkout process, reduce false declines, and improve overall conversion rates. This focus on customer experience is crucial for businesses aiming to increase customer satisfaction and retention.
- Global Reach and Industry Flexibility: Riskified’s services are global, with a focus on North America and Europe, and cater to various industries including retail, travel, and digital goods. This makes it a versatile solution for businesses of all sizes and sectors.
Who Would Benefit Most
Riskified is most beneficial for eCommerce businesses of all sizes that are looking to prevent fraud, increase transaction approval rates, and improve the customer shopping experience. Here are some specific groups that would benefit:
- Online Retailers: Businesses in the retail sector can significantly reduce fraud and chargebacks while improving their conversion rates.
- Travel Companies: Travel businesses can safeguard their online bookings and transactions from fraudulent activities.
- Digital Goods Providers: Companies selling digital goods can protect their transactions and enhance customer trust.
Overall Recommendation
Given its advanced fraud prevention technology, ability to improve transaction approval rates, and focus on enhancing the customer experience, Riskified is a highly recommended solution for eCommerce businesses. The platform’s ability to deliver a significant ROI, as evidenced by a 594% ROI and $71 million in total benefits over a three-year period, further solidifies its value.
If you are an eCommerce business looking to safeguard your transactions, reduce fraud, and improve your customer experience, Riskified is an excellent choice. Its integration with major financial institutions and its proven track record of increasing authorization rates while minimizing chargebacks make it a reliable and effective solution.