Last Updated on May 4, 2021 by merchantfraudjournal
Riskified, a leading card not present and fraud prevention provider, launched the newest version of its ‘Deco’ solution, the company said in a statement. According to Riskified, Deco takes card not present orders that fail payment authorization and converts them into sales. Internal company research placed the percentage of legitimate online shoppers that experience a payments fail authorization at as high as 72%.
“Payment authorization failures are a significant, often hidden, source of revenue loss for eCommerce merchants,” said Eido Gal, CEO of Riskified. “Deco enables merchants to address payment authorization failures in an automated fashion. We believe that Deco represents a key step forward for merchants looking to address the challenge of payment authorization failures.”
Riskified Deco solves the problem of merchants being beholden to payments systems outside of their control. If a payment authorization fails, customers do not understand the distinction between systems that merchants control and do not control. They simply attribute the failed payment to the consumer-facing brand — a false decline that causes a poor customer experience that harms brands’ reputations and result in lost customers.
Riskified Deco works by presenting eligible shoppers with a pop-up asking for their credit card details whenever a payment authorization fails. The customer experiences no additional friction (credit checks, fees, or applications), and Deco processes the transaction, resulting in a successful sale.
Riskified developed Deco in partnership with The Level Group, a global eCommerce design firm that specializes in online customer experiences for luxury, design, and fashion brands.
“High authorization failure rates are a common pain point in cross-border sales, especially for non-US merchants that have growing US sales volumes,” said Andrea Ciccoli, CEO and co-founder of The Level Group. “It’s an even bigger pain point for brands with high average order values, and Riskified allowed us to recover significant amounts of revenue that would otherwise have been needlessly declined while also gaining a cohort of loyal, repeat customers.”