A Canadian based ecommerce company wanted to know if they could increase their credit card authorization rates. Each month they had nearly 100,000 customers attempting to purchase products on their website. The problem was, less than half were being approved by Visa & MC. That’s when they came to PAAY for a solution.
A large e-commerce nutraceutical company with an average ticket size of $45 was experiencing a chargeback rate of over 2% due to ‘friendly fraud’ (legitimate cardholders claiming they never bought the product, after it arrived at their home).
It is nearly impossible to predict or prevent 'friendly fraud' also known as 'chargeback fraud' because it happens after the transaction takes place, by a legitimate cardholder. This is the sneakiest of all chargebacks and almost cost the company their MID. That’s when they came to PAAY for a solution.