Riskified Announces Expanded Chargeback Management System to Soothe the Chargeback Holiday Hangover and Maximize Revenue Recovery
- Dispute Resolve can improve win rates by as high as 35%
- The solution leverages expanded gateway and artificial intelligence integrations to auto-compile and format compelling evidence for every chargeback
- Empowers merchants to centralize and manage all chargebacks, harness automation to minimize manual effort, and customize workflows to enhance existing operations
- None.
Insights
Efficiency in managing chargebacks can significantly impact a merchant's bottom line. Riskified's Dispute Resolve platform could potentially reduce operational costs by automating the compilation of evidence for chargebacks, which traditionally involves a high degree of manual labor. By streamlining this process, merchants could see an increase in revenue recovery rates, which in turn could improve overall profitability.
From a financial perspective, the ability to increase win rates by up to 35% represents a substantial enhancement in managing financial disputes. This improvement can lead to a direct positive effect on earnings, as it mitigates loss from chargebacks. For investors, this could translate into a stronger financial performance for Riskified, potentially affecting the company's stock valuation.
Additionally, the timing of this announcement post-holiday season is strategic, as chargeback disputes typically surge during this period. If Riskified's platform can effectively reduce the cost and time associated with these disputes, it could become an essential tool for merchants, leading to increased adoption and revenue growth for Riskified.
The ecommerce sector is experiencing continued growth and with it, a rise in chargeback disputes. Riskified's platform enhancement addresses a critical pain point for online merchants, offering a value proposition that could differentiate the company in a competitive market. By providing a one-stop solution for chargeback management, Riskified is tapping into the need for more efficient risk management tools.
Market trends indicate a shift towards automation and AI integration in various business operations to increase efficiency. Riskified's approach aligns with these trends, potentially increasing its market share. Merchants prioritizing seamless operations and cost reduction are likely to consider such a platform, which could drive demand for Riskified's services.
Understanding the market's direction, the introduction of such a platform could also set a precedent for future innovations within the industry, influencing competitors to develop similar solutions, thereby increasing the overall market standards for chargeback management solutions.
The evolution of fraud prevention and risk intelligence is crucial in the ecommerce landscape. Riskified's Dispute Resolve platform not only aims to reduce the manual burden of chargeback disputes but also leverages artificial intelligence to enhance the decision-making process. This could lead to more accurate dispute resolutions, thereby reducing wrongful chargeback claims and protecting merchant revenues.
By automating the evidence-gathering process, the platform also potentially decreases the time to respond to chargeback claims, which is critical for maintaining a good standing with credit card networks and issuers. This proactive approach to chargeback management can also act as a deterrent to friendly fraud, where consumers make false claims after a legitimate purchase.
For stakeholders, the adoption of such advanced fraud prevention tools can be seen as a move towards fortifying the merchant's transaction ecosystem, which could improve consumer trust and, consequently, market reputation. This strategic positioning not only benefits Riskified but also its clients, who can leverage improved win rates in chargeback disputes as a competitive advantage.
Dispute Resolve can improve win rates by as high as
A credit card chargeback is a process by which a card owner contests a purchase directly with their issuer, which can force a merchant to reverse the transaction. This process can be abused by a consumer who makes a legitimate purchase, but then falsely claims harm or fraud in order to obtain a refund. To recover the revenue, chargeback managers must evaluate the legitimacy of a chargeback, and dispute the false claim by gathering and submitting “compelling evidence”. However, the process for compiling compelling evidence and disputing chargebacks is often a manual, time-consuming process, fragmented over several platforms. The result is that the majority of merchants recover less than half of chargebacks, according to a forthcoming study by Riskified. Built to streamline and speed up revenue recovery, Dispute Resolve empowers merchants to centralize and manage all chargebacks, harness automation to minimize manual effort, and customize workflows to enhance existing operations.
“The broader ecommerce environment continues to brighten and grow, but with that comes the opportunity for increased chargebacks. Chargeback management is another financial center that’s primed for digital transformation, since today much of the process is terribly manual, time-consuming, and hinders teams from disputing as many chargebacks as they can. With Dispute Resolve, merchants have full control over their chargeback dispute operations. They can choose to automate specific segments or outsource the entire dispute process,” said Eido Gal, CEO and Co-founder of Riskified.
“Hotelogical’s in-house analyst produces outstanding win rates, and Riskified’s Dispute Resolve enabled her to maintain and scale that performance as we grew. Consolidating data and automating menial tasks allowed her to focus her time, insights, and expertise
Using Riskfied’s Dispute Resolve platform, merchants can efficiently manage many of the manual processes that are typically associated with the chargeback dispute process. For example, merchants can automatically gather intelligence about the individual's purchase history and their order details before deciding which chargebacks to dispute. After building their case, merchants can submit their dispute to issuing banks automatically and monitor the status of those disputed transactions in real time. Additionally, merchants can leverage customized and optimized compelling evidence letters for their disputes. Early results show that merchants may be able to boost chargeback win rates by as much as
For a demo video of the value Dispute Resolve delivers to chargeback operations teams, click here. Sign up to pre-register for Riskified’s upcoming research on the state of chargeback management (coming early 2024).
About Riskified
Riskified (NYSE:RSKD) empowers businesses to grow ecommerce revenues and profit by mitigating risk. An unrivaled network of merchant brands partner with Riskified for guaranteed protection against chargebacks, to fight fraud and policy abuse at scale, and to improve customer retention. Developed and managed by the largest team of ecommerce risk analysts, data scientists, and researchers, Riskified’s AI-powered fraud and risk intelligence platform analyzes the individual behind each interaction to provide real-time decisions and robust identity-based insights. Learn more at Riskified.com.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240111717989/en/
Aileen McNelis
PR for Riskified
amcnelis@nexttechcomms.com
Cristina Dinozo
Sr. Director of Communications
press@riskified.com
Chett Mandel
Head of Investor Relations
ir@riskified.com
Source: Riskified
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