Chargebacks are a serious issue in today's ecommerce industry, affecting any site that accepts payments. Merchants are always looking for new tools and resources they can leverage to streamline fraud prevention and lower lost products, chargeback fees, and overall disputes. Spending less time managing fraud and manually reviewing payments is the ultimate goal as that time can be better spent for more productive tasks.
According to a report by Card Not Present, chargebacks caused an estimated $31 billion in losses in 2017 alone. This is a substantial figure that impacts large and small companies alike. Ecommerce is by far the worst industry impacted by online fraud.
Chargebacks, like all types of fraud, follow patterns and behavior models. IPQS' machine learning algorithms detect orders likely to result in chargebacks and can predict malicious behavior to identify high risk transactions. An overall Fraud Score is calculated based on the IP reputation, device reputation, email address history, and over 200 data points. This risk score along with other data our API outputs can provide a wealth of information to enhance your decision making and business logic for blocking orders or requesting more details to verify an order.
Implementing real-time detection for chargebacks is actually quite easy. IPQS' ecommerce plugins and easy-to-use API services can be integrated into any third party platform, app, or website.