Riskified Slashes Price of Flagship Product, Secures New Funding
Aug. 21, 2014
Riskified, a Tel Aviv-based antifraud technology provider that guarantees transactions run through its system to be fraud free, yesterday said it has cut the price for its flagship product by 50 percent. The company said it has adjusted pricing on its Shop Protection service to 0.7 percent per transaction. What that means, according to Eido Gal, CEO of Riskified, since the average merchant loses 1 percent of its sales to chargebacks, the new price combined with Riskified’s guarantee has eliminated chargeback fees for merchants using the service.
“You have hundreds of thousands of merchants out there who essentially are building their own risk systems. They’re buying different facets of their systems from different vendors and at the end of the day they’re taking these parts, adding their own human element and building risk,” Gal told CardNotPresent.com. “We’re doing something different. We’re creating the core technology, the proxy detection, the device ID ourselves. We have complete control. It resulted in a system that is much more optimized than having all these different people try to build.”
Gal said this optimized system has enabled the company to accept the risk of fraud and chargebacks that currently resides with merchants and has resulted in efficiencies that let it cut the price.
At the same time, Riskified revealed that it has secured a $4 million Series A round of investment Gal said is a validation of the company’s model and technology.