PREVENT CHARGEBACK FRAUD BEFORE IT TAKES PLACE
Vigilo uses AI fraud screening to guard your business against Chargeback Scammers.
Make sure a customer is genuine before you ship the order
Intelligent Chargeback Fraud Protection
What Is Chargeback Fraud?
Chargeback fraud occurs when a customer purchases goods from an online store, receives them, and then unjustly disputes the transaction to reclaim the payment. This deceitful practice leaves the online retailer without both the product and the payment, resulting in financial loss.
Fraudsters often use false names and addresses during the checkout process so they are difficult to catch. With e-commerce booming, chargeback fraud has become a major concern for ecommerce businesses of all sizes. The process for appealing against false chargebacks puts power in the hands of the fraudster. This means disputes can be unsuccessful or payment can be difficult to recover.
Don’t worry, Vigilo has the answer.
Chargeback Fraud Statistics
• Chargeback fraud cost $20bn globally in 2023
• Around 75% of all chargeback claims are believed fraudulent
• Chargeback claims increased by 6% between 2022 to 2023
• 59% of online businesses say payment fraud is increasing
• A merchant’s true cost is 2.5 times the cost of the transaction
• Chargeback Fraud is expected to cost $28.1bn by 2026
• Fraudsters target high-value items that are easily re-sold
• Industries labelled ‘easy targets’ by banks include home
furnishings, fashion, leisure goods & travel
Source: https://www.expertmarket.com/uk/merchant-accounts/chargeback-fraud-statistics
Prevent Chargeback Fraud & Protect Your Business Today
Vigilo easily integrates with most ecommerce platforms - click the icon that powers your site to get started:
Common Types Of Chargeback Fraud
1) Friendly Fraud
This is when a customer purchases an item, uses and then returns it, utilising the chargeback function to reclaim their payment and avoid a returns dispute. When an order is placed on your website, Vigilo meticulously analyses the details a customer provides at the checkout and assesses the likelihood of a chargeback being made.
2) Criminal Fraud
Criminal Fraud is a deliberate act to obtain high-value products by deception using prepaid debit cards, and by providing false names and addresses. To protect your revenues, Vigilo verifies the customer’s information in real-time when a high-value order is placed on your website, establishing if the customer is ‘who they say they are’.
How Vigilo Works
Unique Fraud Risk Analysis
Vigilo communicates directly with our data partners as the order is being placed on your website in real-time. It takes just a few seconds to assess the information your customer provides in the checkout when placing the order.
Identity Confirmation
Vigilo checks partner records to ensure the delivery address and the customer’s name are registered on official databases, such as the electoral roll. This verifies whether each customer is who they claim to be.
Real-Time Fraud Alerts
Once an order has been placed, Vigilo adds the fraud analysis score to the order in your website. If an order carries high-risk, we notify you immediately by email, allowing you to withhold dispatch until you have confirmed identity with the customer.
You Choose Which Transactions To Check
Vigilo will conduct two different types of check depending on the settings you apply. The first is Vigilo Network – this checks the customer details supplied on every transaction against our database of users across all websites using Vigilo. We assess whether the customer presents a low, medium or high risk of placing a chargeback by investigating their transaction history in the Vigilo Network. When a user that has a history of making frequent chargebacks places an order in your store, we notify you of the potential risk the customer represents.
The second is Vigilo Prevent. This service focuses on deliberate chargeback fraud, often perpetrated by criminal gangs using false or stolen data to make a purchase of higher-value goods, selling them on and fraudulently recalling the payment via the chargeback system. The cost of the Vigilo Prevent check is £3.50, so we only apply it to orders above a value threshold you determine. For example, if you only want to conduct Vigilo Prevent checks on orders over the value of £250, simply add this amount into the app settings and Vigilo will only check orders which exceed that amount.
Vigilo Pricing
Vigilo Network
Identify Chargeback Abuse or “Friendly Fraud”
Vigilo uses machine learning to assess the risk of a chargeback being made on orders placed via your ecommerce store. Every transaction is checked against our database of shoppers who regularly abuse the chargeback system, alerting you if such a customer places an order on your website:
Just £0.04 per transaction
Vigilo Assess checks are conducted on all orders
Vigilo Prevent
Identify Potential Criminal Chargeback Fraud
Vigilo highlights potential Criminal Chargeback Fraud by verifying the customer’s identity on high-value orders. You choose the minimum value of orders you want to check (e.g. only check orders over £250). When an order is placed above that value, Vigilo makes sure the customer is who they claim to be.
Just £3.50 per transaction
Vigilo Prevent checks are only conducted on high-value orders
