Chemist Warehouse Drops Overly Cautious Fraud Tools – Security – Finance

Chemist Warehouse Group is accepting more online payments, especially from first-time customers, since switching from overly cautious fraud prevention tools that rejected genuine shoppers.

In a statement, the pharmacy franchise said online sales soared “within days” of ditching its previous card verification tool.

Jack Gance, Managing Director of Chemist Warehouse, said:

The retailer switched to using Riskified, which runs machine learning-based fraud detection models.

Feeding the model with historical and real-time identity data sourced from a “global network of merchants” reduces the likelihood of rejecting legitimate online orders, Riskified said.

Riskified will also take responsibility and reimburse Chemist Warehouse for costs incurred by fraudulent transactions that slip through its detection model or lead to chargebacks.

A chargeback is the reversal of a fraudulent credit card payment issued directly by a bank at the request of the legitimate credit cardholder.

Unlike refunds, chargebacks allow customers to bypass the retailer and request a refund directly from the bank. The bank then collects the funds from the retailer. This is he one of the biggest costs of online fraud for retailers.

Chargebacks are usually caused by “card-not-present” transactions, such as fraudsters using another shopper’s online account. Scammers may have gained access through means such as phishing and credential stuffing.

However, Riskified’s Chargeback Guarantee also covers Chemist Warehouse against the new threat of legitimate credit cardholder chargebacks called ‘.friendly scam.’

These chargebacks can be forgotten purchases, family purchases, buyer regrets, or “lying buyers” who abuse the merchant’s return policy to recover costs.

Riskified says it provides merchants with automated tools to help them resolve disputes with customers who file questionable chargebacks, as well as identify repeat offenders and shoppers at high risk for so-called unintentional fraud. increase.

The Israel-based company opened its first Australian office in Melbourne last year. Other clients include JB Hi-Fi, David Jones, Kogan.

Chemist Warehouse Drops Overly Cautious Fraud Tools – Security – Finance

Source link Chemist Warehouse Drops Overly Cautious Fraud Tools – Security – Finance

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