False declines, also called false positives, cause merchants to lose far more revenue than fraud itself, yet these losses stay hidden from income statements. A ClearSale and Aite Group report and accompanying webinar outline the benchmarks merchants need to monitor and smarter strategies to reduce false declines. The free webinar covered manual reviews, IP verification, and chargeback protection.
Today’s online consumers have high expectations – and number one among those expectations are fast, easy and safe checkout experiences. Every e-commerce merchant wants to deliver this. But what happens when your fraud protection solution gets in the way?
As card-not-present (CNP) fraud levels increase, your revenue is on the line. Unfortunately, many merchants are not aware that their fraud solution may actually be creating a bigger problem than fraud.
False declines – also called false positives – cause merchants to lose 13x more revenue than fraud. These losses don’t show up on your income statement, but they’re real losses, and they’re significant.
A new report titled “The E-Commerce Conundrum: Balancing False Declines and Fraud Prevention,” commissioned by ClearSale and produced by Aite Group, provides important data on the state of false declines in e-commerce. Notably, the report outlines key benchmarks merchants need to monitor to minimize false declines.
Presenting the webinar will be Julie Conroy, research director for Aite Group, Rafael Lourenco, executive vice president at ClearSale, and David Fletcher, ClearSale’s senior vice president of sales.
The panel will explain why CNP transactions are disproportionately impacted by false declines and why false positives are such an expensive problem. The experts will also elaborate on the key insights, including:
While 79% of merchants surveyed recognize that false declines are an industry problem, they are also beginning to understand that their approach to approving/declining orders may be the root of the issue. In fact, more than half of the merchants surveyed said their fraud prevention solutions automatically decline as many as 7.5% of their transactions.
To help address this issue, the October 10 webinar will also cover smarter fraud strategies merchants can adopt, such as manual reviews, IP address verification and chargeback protection.
If this sounds like the information you need to balance your revenue, fraud prevention and customer experience, mark your calendar now and reserve your spot today for this free live webinar. It’s information you simply can’t afford to miss.
False declines, also called false positives, occur when legitimate transactions are wrongly rejected. The article states they cause merchants to lose 13 times more revenue than fraud, yet these losses do not appear on income statements even though they are real and significant.
As card-not-present fraud rises, many merchants respond with overly conservative fraud solutions that automatically decline suspicious orders. CNP transactions are disproportionately impacted because they lack the in-person verification of card-present sales, increasing the chance good orders are declined.
According to the report, most merchants experience false decline rates between 1.1% and 5%. More than half of surveyed merchants said their fraud prevention solutions automatically decline as many as 7.5% of transactions.
Yes. The article notes that 79% of merchants surveyed recognize false declines as an industry problem, and they are starting to understand that their own approach to approving or declining orders may be the root of the issue.
The report indicates that merchant decisions make up only a small percentage of the source of false declines. Much of the problem originates elsewhere in the authorization chain rather than from the merchant's own choices.
The webinar covered smarter fraud strategies including manual reviews, IP address verification, and chargeback protection. These approaches help merchants balance revenue, fraud prevention, and customer experience rather than relying on automatic declines.