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Operational Efficiencies Enable Riskified to Lower the Price for its Flagship Shop Protection Service to Below the Cost of What Merchants Pay for Chargebacks Annually;Riskified Raises $4 Million Series A Round
TEL AVIV, Israel, August 20, 2014 /PRNewswire/ --
Riskified, a leading online fraud and risk management solution that reviews, approves and guarantees e-commerce transactions, today announced that it has lowered the price for its flagship Shop Protection service by 50% to 0.7% per transaction. With merchants losing an average of 1% of their total sales due to chargebacks, the new lower price for Riskified's Shop Protection service represents significant cost savings for most online merchants. In addition, every approved transaction is backed by Riskified's 100% chargeback guarantee, which shifts the liability for any chargeback to Riskified and thus eliminates chargeback fees for online merchants.
To encourage new merchants to try Riskified's flagship Shop Protection service, the company is offering to review, approve and guarantee the first $50,000 in sales for free. Shop Protection proactively analyzes all of a merchant's online orders, and on average approves 99% of them - including up to 74% of transactions that might normally be declined due to possible fraud. Simultaneously, Riskified's global fraud network identifies fraud patterns and blocks fraudulent transactions originating anywhere in the world. By doing so, Riskified helps merchants increase conversions and recapture lost revenue, while decreasing risk and fraud, chargeback fees and other operational costs associated with manually reviewing borderline transactions.
Since its launch in late 2012, Riskified has signed on more than 1,000 merchants from over 20 countries for its online risk and fraud solutions, which include its flagship Shop Protection service, individual transaction review, geographic monitoring, and an on-demand service that scales up to support internal risk teams during peak sales periods. Riskified's customers include Viagogo, Reed's Jewelers, SSENSE, and others.
"Riskified's Shop Protection service represents the end of chargebacks for online merchants," said Eido Gal, founder and CEO of Riskified. "Over the past two years, technology improvements and operational efficiencies have enabled Riskified to reduce the price of our flagship service and pass along the saving to our customers. Combined with Riskified's 100% chargeback guarantee and our ability to recapture lost revenue, the new lower price for Shop Protection makes e-commerce more cost effective, profitable and secure."
According to eMarketer, global B2C e-commerce will hit $1.5 trillion in 2014. Based on past industry trends, Riskified estimates that online merchants could incorrectly decline $45 billion in sales globally due to the fear of fraud (3% of total transactions) and potentially lose $15 billion globally to actual fraud (1% of total transactions) in 2014.
"Having Riskified instantly review, approve, and guarantee orders has really moved the needle for our business," said Attila Dogan, Head of Revenue Protection and Payments at Viagogo. "Riskified's 100% chargeback guarantee gives us great peace of mind that our business is well protected."
In February, Riskified closed a $4 million Series A round from international investors including Genesis Partners, Founder Collective and Entrée Capital, bringing its total funding to $5.65 million.
Headquartered in Tel Aviv, Riskified is a leading provider of turnkey risk and fraud solutions for e-commerce merchants. Its proprietary technologies help increase conversions and recapture lost revenue from declined transactions due to fear of fraud, while simultaneously protecting merchants from actual fraud from anywhere around the world. Since its launch in late 2012, more than 1,000 merchants from 20 countries have implemented Riskified, including Viagogo, Reed's Jewelers, Ssense and more. Riskified's 100% chargeback guarantee, flexible pricing, pay-for-performance model, and proven technologies make Riskified both an economical and effective solution in helping merchants fight fraud and improve their top- and bottom-line. For more information, please visit us at http://www.riskified.com, or Twitter (@Riskified).
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