Riskified announced the launch of Auth Rate Enhance, a configuration of Chargeback Guarantee that helps merchants propel ecommerce growth by maximizing authorization rates and approving more online orders without compromising on fraud prevention. In today's competitive ecommerce landscape merchants fight to attract and retain customers. But for many shoppers, the journey ends before it truly starts.

According to Riskified data, approximately 15% of ecommerce orders fail due to card issuers declining to authorize payment. Meanwhile, Riskified's data indicates that up to 70% of these declined payments may be from legitimate customers who appear too risky. The impact is massive: false declines were expected to generate a $157 billion loss (Nuvei) for US merchants alone in 2023.

Globally, false declines were set to exceed $443 billion (Aite-Novarica), far outweighing the projected $48 billion loss globally from actual ecommerce credit card fraud (Statista). Overly low authorization rates can choke conversion rates, in turn stunting ecommerce growth. This situation highlights a critical opportunity to optimize the various safeguards within the purchase process to enable merchants to capture more customers and revenue.

Auth Rate Enhance pre-screens orders and enriches the analysis with data points that give issuers such as Capital One the confidence to authorize more digital orders. Furthermore, Riskified's Chargeback Guarantee offers the flexibility to be configured pre-authorization or a combined approach integrating pre- authentication risk assessment with a post- authentication feedback loop. This empowers merchants to optimize conversions, reduce insult rate, and offload chargeback risk to Riskified based on the needs of their specific business segments.

Riskified?s Auth Rate Enhance can help merchants improve their risk profile through accurate fraud prevention, see a significant increase in authorization rates, establish critical trust with card issuers, and take better control of their customer journey.