Hero Outdoors Needed a New Fraud Protection Partner
Hero Outdoors was going through a period of growth driven by an increase in online sales. However, this growth meant the company was dealing with more fraud. The retailer's selection of high-value products made it an attractive target for fraudsters, so the risk of fraudulent orders became an increasingly important concern.
Unfortunately, Hero Outdoors' fraud prevention provider wasn't doing a good enough job. The company found that 90% of the orders this fraud prevention partner was rejecting were false declines, so Hero Outdoors was missing out on revenue from valid customers.
Response times were slow, too, as this fraud prevention partner was leaving customers waiting with pending orders and failing to offer a response quickly enough when issues came up. Customers were also frustrated by the fact that there was no way for them to file an appeal when there was a false decline.
"Our previous fraud prevention provider wasn't flexible and customer service was often through email. ClearSale provides us with great customer service, so I can sleep at night."
Jeff Schwartz, Owner, Hero Outdoors
Hero Outdoors needed a new fraud prevention partner that could identify risky transactions and provide the service their customers expected. They needed this help in a hurry, too, because false declines were seriously harming their revenue.
The Retailer Turned to ClearSale's Fraud Prevention Strategy
Hero Outdoors partnered with ClearSale to implement a fraud prevention strategy that combined advanced technology with experienced human analysts. They didn't want to rely solely on automated rules because that technique was driving high false decline rates. It was also leaving customers upset with the lack of an appeals process.
With ClearSale, all orders were evaluated based on:
- Customer behavior
- Transaction details
- Purchasing patterns
This approach made it possible for Hero Outdoors to improve its fraud detection accuracy while also reducing the number of false declines. ClearSale combines AI with human experience, helping them make more informed approval decisions and provide better customer service.
Perhaps the most significant advantage of this partnership was ClearSale's guaranteed fraud protection offering. ClearSale took on 100% of the financial responsibility for approved fraudulent transactions, reducing Hero Outdoors' exposure to fraud-related losses.
ClearSale helped create a smoother shopping experience for legitimate customers because there were faster approval decisions and more valid orders being accepted. The result was a healthier business and happier long-term customers.
Stronger Fraud Protection Results in Better Business Performance
Hero Outdoors has made measurable improvements in fraud prevention by partnering with ClearSale. The retailer now has an average monthly order approval rate of 92.4%, so the company is capturing more legitimate sales without the added risk of fraud-related losses.
They don't turn away good customers because of overly restrictive fraud controls anymore, either, as Hero Outdoors now approves more valid transactions each and every day.
Chargeback performance also improved because of the switch to ClearSale. During the measured period, Hero Outdoors maintained an average monthly chargeback rate of just 0.24%, which is far below payment provider monitoring program thresholds.
Perhaps even more importantly, the company is responsible for $0 in chargeback costs because ClearSale's Total Guaranteed Protection covers any fraudulent transactions that end up being approved. This guarantee makes it possible for the business to reduce its financial risk and gain greater predictability in its operations.
This partnership also comes with a higher level of responsiveness and support than Hero Outdoors' previous partner provided. The company has confidence that ClearSale will address fraud concerns immediately, allowing the team to operate without worrying about the next fraudulent order.
Building a Safer Path For Growth
Hero Outdoors needed a new way forward as it expanded its online business because their previous fraud prevention partner just wasn't cutting it. ClearSale provided the expertise and guaranteed protection this Canadian outfitter needed to reduce its fraud risk and rates without hurting the customer experience or giving up legitimate sales opportunities.
Contact ClearSale today to learn how our fraud prevention solutions can help your business grow with confidence.
