Landon Ashby, owner of Lanbo’s Armory, always knew fraud was a risk when selling high-priced firearms online. Although the company’s chargeback rate was low, the chargebacks it did have were financially devastating. Ashby and his team tried everything they could think of to review orders more carefully, but fraud kept slipping through.
Current Chargeback Rate
Order Approval Rate
The Challenge: Reduce Fraud Without Frustrating Good Customers
The last straw for Ashby was a fraudulent purchase of high-value rifle optics. The company had done everything right – including shipping the order to the AVS-confirmed billing address and requiring a signature upon delivery. And yet, the order turned out to be fraudulent, and the company lost several thousand dollars. Worse, they disputed the chargeback with the card issuer and lost.
Ashby looked back at everything they had tried to screen orders on their own: Requiring government-issued IDs if an order was shipped somewhere other than the billing address. Not allowing alternate shipping addresses at all. Blocking sales from outside the United States. He was certain all of these steps had only caused the company to lose sales, and it certainly wasn’t enough to stop the fraud.
“With many of the fraud checks we attempted to institute, we would occasionally get feedback when a customer’s order was declined. However, I am certain there were many customers that simply walked away without contacting us. We will probably never have another chance to gain their business.”
The Solution: ClearSale’s Total Guaranteed Protection
After extensive research on fraud prevention vendors, Ashby learned about ClearSale’s Total Guaranteed Protection that could help protect his company against chargeback costs.
ClearSale also offered Lanbo’s Armory:
- Automated screening of each order, using advanced machine learning to flag suspicious activity
- Manual reviews of each flagged order, establishing contact with buyers if needed to verify transactions
- No upfront cost, no obligation, and no minimum monthly amount
- Easy integration with their existing e-commerce platform
- Experts available 24/7 during integration and implementation
- 100% coverage of all chargeback-related costs
The Results: More Sales, More Confidence
Since partnering with ClearSale in May 2017, Lanbo’s Armory has seen dramatic results. Its chargeback rate has dropped to 0%, while its approval rate the last three months has skyrocketed to 99.3%. The company also benefits from ClearSale’s expertise in other important ways.
More Orders Approved
Previously, Ashby’s team would decline nearly a dozen orders every month as being too risky. Now, his team sends those orders to ClearSale, where the comprehensive review process means more orders are approved, and fraud is almost non-existent.
“ClearSale can review and approve the orders that we would have declined as being too risky. That’s extra revenue we would have otherwise lost.”
The Confidence to Sell
Best of all, Ashby doesn’t have think about fraud anymore. Even if a fraudulent order slips through, ClearSale covers 100% of the cost of the fraudulent chargeback. This means stress levels are way down for his team, too, since they no longer have to worry about researching orders and deciding which orders to block. Instead, the entire company can focus on what matters most: growth.
“The amount we pay ClearSale is much less than what we were paying additional staff to do the same amount of work — and now we get a guarantee to go along with it.”