Cell phones are a high-risk e-commerce category because fraudsters can easily resell them or use them to commit more fraud. So, PhoneDaddy.com started out with basic fraud screening in place, provided by their e-commerce platform, Shopify.
However, “a couple of months into starting our store, we noticed that quite a few of our orders were fraudulent,” said PhoneDaddy.com web developer Jelena Petrovic. It appeared that fraudsters were systematically targeting their store. “A good amount of those orders were coming from the same cities, from the same people using different email addresses.”
ClearSale began screening all PhoneDaddy.com orders in June 2020. Since then, PhoneDaddy.com
- Saves money by eliminating in-house order review
- Spends more time focused on their business
- Approves more good orders
- Pays no fraud-related chargeback fees, ever, thanks to ClearSale Total Guaranteed Protection
The Challenge: Reviewing a huge volume of flagged orders and fraud attempts
PhoneDaddy.com found that Shopify’s fraud filters were flagging a large number of their orders as suspected fraud, but it was up to PhoneDaddy.com to decide which of those orders to approve and which to reject, depending on the fraud indicators.
Soon, the company had two people working full time to review the flagged orders and try to determine if they were legitimate or not. This raised the company’s costs and slowed down the order approval process. It also risked making decisions that could let fraudsters succeed or turn good customers away.
- 85% fraud rate
- No expert review
- Most flagged orders declined
The Solution: ClearSale Total Guaranteed Protection
PhoneDaddy.com’s team started researching Shopify’s fraud protection apps and chose ClearSale, based on its experience protecting more than 3,000 clients selling to customers in 160 countries. “You work with a lot of well-known name brands, so we thought you’d be a great partner,” Petrovic said.
As one of the world’s largest CNP fraud prevention operations, ClearSale offered PhoneDaddy.com
- 18+ years of experience stopping fraud
- The industry’s highest order approval rates
- The lowest false decline rates
- The 1st chargeback guarantee in the industry
When ClearSale started analyzing PhoneDaddy.com’s orders, they observed some troubling patterns. On some days, order volume on the site was twice the expected amount, and 85% of those orders were attempted fraud.
By identifying and rejecting those fraudulent orders, ClearSale protected PhoneDaddy.com from losing revenue and product, and from paying costly chargeback fees.
ClearSale does more than stop fraud, though. They’ve also helped PhoneDaddy.com reduce their false decline rate by identifying flagged orders that are safe to approve. Avoiding false declines helps merchants generate more revenue and keeps good customers happy. “There was quite a bit of income and revenue potential that you’ve saved us by approving and guaranteeing those orders as well,” Petrovic said.
Comprehensive fraud prevention with no chargeback costs
PhoneDaddy.com’s fraud-related chargeback costs are a thing of the past with ClearSale’s Total Guaranteed Protection service.
And ClearSale’s combination of proprietary AI and machine learning technology plus expert manual reviews of suspect orders means that PhoneDaddy.com’s fraud prevention program is always getting smarter. By learning what good customers look like and how they behave on the Phone Daddy site, the program can quickly spot fraudsters, even when they try new tactics.
ClearSale also offers merchants
- Fast decisions to keep good customers happy and avoid sales peak slowdowns
- Virtually no false declines, so good customers have a great experience
- Customizable screening methods for different industries, markets and customer bases
- Real-time metrics and customer reports in an easy-to-use digital dashboard
- Compliance with all data protection laws, to maintain customer trust and avoid fines
The Results: Less fraud, more revenue, more efficient operations
- 6X more approved orders
- $0 chargeback liability
- More revenue, more time
Now, PhoneDaddy.com is free to grow the B2C e-commerce side of its business, without worries about fraud and false declines. “It’s been an awesome experience. Everything is quick and efficient, and we really appreciate the partnership.”