Bringing certainty to card-not-present transactions
The US operation of a foreign-based luxury retailer was experiencing a 5% fraud rate on about $15M in annual card transactions being done by phone (card not present) to their stores. They needed a way to validate the customers who were calling in and prevent the $750k annual loss they were experiencing.
The retailer was taking calls on transactions as high as six-figures and had to be sure that the customer ordering the product or service was who they said they were before shipment could occur.
“The solution paid for itself after the first fraud attempt was foiled and the client saw an overall drop in fraud of over 80%.
Plaidypus used a combination of custom-software and fraud-prevention services to help this retailer better understand who was on the other end of a phone order. With user-validation delivered to the associate at the store, they gained assurance that the product or service was being shipped safely. Overall, the solution:
- Reduced fraudulent transactions below 1%
- Had rapid Return on Investment (ROI) which was realized within 1 month of the platform being active
- Allowed the retailer to scale their business safely within the US and allow customers to call in with orders
NOTE on this Case Study: Plaidypus takes customer privacy seriously. There are details that we are unable to provide in this case study in order to support the security and privacy of the customer’s identity and application. If your organization needs a similar solution, please reach out to us.