The integration allows commercetools to integrate Riskified’s Chargeback Guarantee solution, enabling merchants to minimise financial losses from payment fraud. It will be available for business through commercetools’ Integration Marketplace. According to Riskified’s officials, the integration with commercetools aids in stopping fraud while optimising operations, protecting revenue, and offering a secure shopping environment.
commercetools provides businesses with comprehensive commerce functionality and composable technology. Working with brands like Lululemon, Ulta Beauty, and H&M, commercetools has to be committed to helping merchants thrive in an ever-changing digital landscape. Therefore, its integration with Riskfied’s risk management solution comes as a natural step in aiming to enhance the overall customer experience and reduce the costs associated with fraud.
Hence, the partnership between these two firms is helping merchants to overcome the problems of fraud and risk management, allowing them to focus on providing excellent goods and experiences to their consumers.
Riskified moves towards expanding its input in the digital landscape. By partnering with commercetools and combining their expertise, both companies aim to safeguard merchants from payment fraud drawbacks and reputation damage.
While the industry is constantly expanding, with advanced technology and regulations, chargeback procedures stagnated, remaining an issue for enterprises. Impacting merchants on an extensive level, chargebacks can result in higher acquisition costs, loss of trust, and additional operational expenses.
Due to the increase in online commerce, payment fraud, either friendly or deceitful, has also escalated, leading companies to a loss in merchandise value and a need for alleviation. Chargeback mitigation solutions have become a necessity for businesses that have surging online payment volumes, as they can influence business profitability and fraud losses. These technologies can deter fraud, provide insight, and recover funds for businesses to decrease expenses and chargeback volumes.
Aiming to solve part of these issues, Riskified introduced chargeback guarantee, a business model in which a fraud protection provider bears accountability for every cleared order in the event of fraud. The chargeback guarantee is often provided in tandem with a machine learning-powered quick order decisioning engine. The chargeback liability component provides for more cost predictability, ensuring that the interests of the merchant and third-party provider are aligned, and helps merchants to approve more orders with confidence rather than err on the side of caution and end up over-declining.
commercetools is not the first company that decided to work with Riskified. Back in April 2023, Riskified established a partnership with Deloitte, a provider of fraud and financial crime consulting services, to give merchants real-time visibility into how their chargebacks, approval rates, and fraud charges compare to similar firms in their market. Through this collaboration, Deloitte can now better analyse and measure merchant risk and deliver a more focused solution to improve the digital transaction experience by leveraging Riskified's collection of transaction and customer identification data across sectors and regions.
Moreover, aiming to improve its product offering, Riskified decided to introduce an Identity Explore feature in January 2023. Through it, merchants will be able to deliver personalised customer experiences and customise policy choices while minimising losses from policy-related abuses. As a result, the system broadens the notion of client identification beyond a single profile with a merchant.
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