Riskified Guarantees E-Commerce Transactions with ‘Never Decline’
Dec. 16, 2013
Riskified, a Tel Aviv-based provider of antifraud technology for e-commerce, on Thursday launched a new solution for online merchants called Never Decline. The company said its new solution enables e-commerce merchants to select any transaction coming through its system and send it to Riskified for approval or denial. If Riskified approves the transaction, the company guarantees it 100 percent against fraud. The company charges a per-transaction fee only on orders it approves. The pricing model, along with the guarantee result in what Riskified CEO Eido Gal calls “fearless e-commerce.”
Gal told CardNotPresent.com that the idea of guaranteeing transactions is not new, but it is when applied to e-commerce payments using credit cards.
“Digital wallets like PayPal or Google Wallet have this guaranteed aspect to them. So it’s not something that’s never been done before, it just hasn’t been done with credit cards,” Gal said. “PayPal had that requirement in order to gain traction. The card networks, which have been established for a generation, were happy to put the onus on the merchants.”
Gal said many of its clients are using the Never Decline plan as art of a comprehensive fraud solution where they choose to send their riskiest transactions (transactions they otherwise might reject or might be flagged by their other fraud tools for manual review) to Riskified for review. The company runs it through its proprietary “contextual risk engine” that incorporates many advanced antifraud technologies and how each measure interacts and relates with the others. It comes up with an accept/decline result Riskified feels is so strong, it is able to guarantee an approval.
“The fact that they indemnify everything is their biggest piece,” said Anthony Cattarina, owner of early Riskified client Turntable Lab. “No competing companies financially guarantee a mistaken approval. There’s absolutely no reason e-retailers shouldn’t be signing up in droves to use it.”