Riskified Launches Deco to Help Merchants Recover Up To 20% of Transactions Lost to Payment Authorization Failures
Deco Delivered Significant ROI and Increased Customer-Retention for Design Partners
NEW YORK, May 4, 2021 /PRNewswire/ -- Riskified, the leading fraud-prevention solutions provider today announced the launch of the latest version of Deco, a real-time solution for recovering orders lost to card-not-present payment authorization failures. As many as one in seven attempted eCommerce transactions fail payment authorization, according to The Economist, leading to lost revenue and upset customers. Deco converts up to 20% of those declined transactions into immediate sales, delivering a significant ROI to merchants and boosting customer satisfaction.
Payments need to be authorized by multiple financial institutions in order to be successfully completed. Many of these institutions have not kept pace with the rapid changes in online shopping and consumers' purchasing behavior, making payment authorizations an especially hard challenge for eCommerce merchants. According to Riskified's research, as many as 72% of online shoppers whose payments fail authorization are actually legitimate customers who should have been approved.
Riskified developed Deco with design partners including The Level Group, a leading global eCommerce partner that builds and manages end-to-end online experiences for luxury, design, and fashion brands.
With Deco, a luxury European brand that is one of The Level Group's partners, has recovered 9.62% of Deco-eligible US credit card payments annually, and saw more than half of its Deco users double their spend on return shopping trips.
"High authorization failure rates are a common pain point in cross-border sales, especially for non-US merchants that have growing US sales volumes," said Andrea Ciccoli, CEO and co-founder of The Level Group. "It's an even bigger pain point for brands with high average order values, and Riskified allowed us to recover significant amounts of revenue that would otherwise have been needlessly declined while also gaining a cohort of loyal, repeat customers."
"Payment authorization failures are a significant, often hidden, source of revenue loss for eCommerce merchants," said Eido Gal, CEO of Riskified. "Deco enables merchants to address payment authorization failures in an automated fashion. We believe that Deco represents a key step forward for merchants looking to address the challenge of payment authorization failures."