Risk management for merchants – it is not complicated

Tuesday 28 August 2018 09:50 CET | Interview

The Paypers has sat down with Edoardo “Edo” Fiorentini, the CEO of Edo4All to find out more about the startup and what tools do merchants need when fighting fraud

What is the story behind Edo4All and what is its mission statement?

Actually, it´s a very simple one. I wanted to share my approach towards fraud prevention on a larger scale. Our mission statement is to cover some of the weaker parts of doing business online and prevent losses caused by chargebacks. In ecommerce, digital content subscription merchants are the most affected by online fraud. Annually their losses from chargebacks account for hundreds of thousands of dollars and sometimes even millions. It felt natural to focus on trying to find a solution.

In which way is your risk management strategy innovative and unique on the market? What current and emerging fraud challenges do you plan to overcome with your solutions?

I´ve spent several years managing risk and fraud for online retail merchants. As a next step in my professional growth, I wanted to challenge myself into finding a solution for more riskier businesses, the ones everyone in the payments value chain has found difficult to handle. The digital subscription industry has been the perfect place to start. Digital content with immediate fruition has made ineffective the traditional methods of preventing chargebacks. Applying traditional chargeback prevention techniques to digital content subscription merchants operating on trial followed by a monthly membership has been seriously ineffective. What makes B.AI.B different is that the Lifetime Value (LTV) of the customer is prioritized and used as the leading metric to keep chargebacks and revenue loss under control. B.A.I.B (Balanced Ai 4 Businesses) is the first product of my own startup Edo4All. A Risk scoring platform based on the latest available technologies and services on the market, tailored for subscription and rebilling model, in the high-risk environment. Of course, it has a chargeback management console, blacklist and third-party data enhancement connections. I can’t yet disclose how I implemented the usage of the blockchain into the order scoring Ai. The Patent filing application takes some time.

You also provide assistance to employees from risk departments - what benefits does peer-to-peer knowledge bring to risk teams?

Training has always been my passion and I am truly excited to the opportunity of helping companies manage and reduce their fraud pressure. Sharing knowledge is key in the fraud prevention industry. We are living in a world where ecommerce is growing exponentially and as a Risk professional, I feel responsible for forming the next generation of Risk Managers.They are the ones that have the hardest jobs in a company and need all the help to make a positive impact in terms of fraud performance and cost optimization. Sometimes fighting fraud can be as simple as having a visual of the outcomes of the Risk Managers logic applied and being able to compare them prior to moving to the next level of prevention.

Do you agree or disagree with the controverted idea of not relying on manual review at all? Please explain your perspective.

It´s a general assumption that Manual Review happens before an order (transaction) gets approved. Imagine a large ecommerce retail or digital subscription merchant with thousands of orders every day. It´s humanly impossible to manually review all of them. However, this doesn´t mean that post-mortem cases are not reviewed. This is also a form of Manual Review.
Therefore, I would say that it´s important to find the balance between using advanced technology for risk management without forfeiting on Manual Review. At the end of the day, each machine needs human intervention to become better in the results it provides.

What is your vision for the future? Do you already have a strategy in reaching the unicorn status?

I want to be part of the way we revolutionise online shopping. Either it is retail or subscription, merchants and consumers need to feel safer when purchasing. I believe we are living in exciting times when as a Risk professional, I can really make a difference in providing a fraud prevention solution to an industry that didn’t have one. Now it does.

About Edo Fiorentini

Edoardo ¨Edo¨ Fiorentini is a Risk and Fraud Management professional with extensive experience and excellent track-record in delivering solutions for preventing financial losses in ecommerce. He is passionate about data analytics and it´s applicability in fraud prevention. He uses his know-how in helping companies optimise their processing patterns. He is set on a journey to challenge the global market in fraud prevention solutions.

About Edo4All

Edo4All is a consulting company launched in 2018, focused on providing risk management solutions for ecommerce business including retail and digital subscriptions (recurring billing). The fraud platform, B.AI.B, is a powerful tool built with the mindset of a Risk Manager. It´s analytical dashboard and simulation environment help manage fraud and chargebacks more transparently. The platform concept relies on the individual business model as ¨one doesn´t fit all¨.

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Keywords: Edo4All, BAIB, Edo Fiorentini, risk management, startup, ecommerce, fraud prevention, merchants
Countries: World