Effective April 2023, Visa is launching the Compelling Evidence (CE) 3.0 initiative to update compelling evidence requirements for fraud category chargebacks. Merchants who submit evidence adhering to the updated criteria will not only successfully overturn the chargeback, but will also shift liability to the issuer. Previously, liability shift could not be obtained using the chargeback dispute process, only by implementing authentication at the time of purchase (e.g. using 3DS). Under Visa CE 3.0, merchants can shift liability to the issuer by establishing a legitimate purchase pattern accor ..read more

May 11, 1997, was a watershed moment. Gary Kasparov, then the no. 1 ranked chess player in the world, lost a match in under 20 moves to IBM’s supercomputer Deep Blue. Despite a temporary rally, the match ended with a 3.5-2.5 win to the machine, reversing Kasparov’s triumph just 15 months earlier.  The famous match was seen as a sign that Artificial Intelligence (AI) was catching up to human intelligence. IBM’s then-CEO Louis Gerstner announced, "what we have is the world's best chess player vs. Gary Kasparov." The Weekly Standard summed up the event with an article titled “Be Afraid.” A ..read more

The Chargeback Guarantee model of fraud prevention is preferred by large eCommerce businesses because it leads to consistently wide margins and fraud cost predictability. In our decade of operation, it has been the foundation of thousands of thriving, long-term partnerships. The strength of the model is one reason that each year, 99% of our merchant partners choose to renew their relationship with us. Still, some providers in the fraud prevention space do their best to cast doubt about the model’s many benefits. In this article, we will address the five most pervasive misinformation circulati ..read more

Return policy abuse is on the rise, but existing fraud prevention tools simply weren't designed with this challenge in mind—until now. Riskified's Eyal Elazar, Senior Director of Product Marketing, and Joe Gelman, Product Marketing Manager for Policy Protect, offer their expert advice on how retailers can protect their bottom line and realize the true promise of tailored customer experiences. Why can't risk models designed to prevent card-not-present (CNP) fraud tackle return policy abuse alone? What makes it such a unique problem? CNP fraud certainly comes with its own complexities– but comp ..read more

The world is at a turning point as it exits an era of digital transformation. Ecommerce is still on a growth trajectory and is estimated to reach $8.14 trillion in global revenue by 2026 despite the hits it took in 2022. However, faced with rising energy and goods prices due to rising geopolitical tensions, global inflation, and reduced spending power, consumers will be making different choices in the year ahead. Retailers will need to follow suit, paying special attention to these four intensifying eCommerce trends for 2023. Ecommerce Trend 1: Consumers are rethinking habits Ecommerce Tren ..read more

A new survey reveals that consumers are taking advantage of retailers' policies to obtain goods through fraudulent returns, wardrobing, coupon fraud, and more. In early November 2022, Riskified surveyed 1,000 U.S. eCommerce shoppers about their attitudes toward retail return fraud or policy abuse. Consumers answered if they had ever done any of the following actions to exploit a merchant's goodwill policies: Opening a new email address to get more coupons or discount codes Claiming an item wasn't received to get a refund, despite receiving it Not sending back an item after receiving a refund ..read more

With consumer spending remaining solid, the overall forecast for 2022 holiday season shopping will be better than expected. Still, fears of recession and rising inflation amidst supply chain woes weigh heavy on shoppers' minds. This year, 60% of consumers will rely on gift cards to fill gaps in product availability and combat high prices. But to grow the bottom line, merchants need to consider the delicate balancing act of gift card fraud prevention. Last year, the gift card industry was valued at $313.4 billion in the US alone, and the global gift card market is ..read more

Today's fashion brands are no strangers to reinvention, thriving on new trends and requiring rapid responsiveness to customers' changing needs. But it's not just style that changes seemingly overnight. Every aspect of the fashion business is experiencing large-scale changes, from the competition to the catwalk to the checkout. In this booming industry, even legacy companies with solid identities need to gain an edge––and fraud management for fashion brands can make all the difference. ECommerce losses from payment fraud in 2021 are estimated at $20 billion in the US alone, but it's ..read more

Friendly fraud, policy fraud, and account takeover attacks are becoming more and more prevalent in recent years, and merchants are rightly worried. But the increase in “alternative” fraud methods shouldn’t distract merchants from what is likely to remain eCommerce’s main threat for many years to come: credit card breaches and its consequences, card-not-present (CNP) fraud.  Most transactions around the world are made using credit cards, with the exception of China. There are currently 2.8 billion such cards in circulation worldwide, with around 70% of global households owning at least on ..read more

You’re a merchant publishing your quarterly or annual financial statements, and you’ve had a great season. Your marketing investments have paid off, resulting in an influx of new customers. These first-time customers are a major growth engine. They’re also a significant factor in the equation businesses use to calculate their growth and revenue forecasts. A steady stream of new customers often translates into stock market success, leading analysts to mark your business as one to bet on. So far, so good? Well, it’s complicated. Because sometimes, as PayPal recently found out, these new custome ..read more