Why Reducing False Declines Are Critical to Increasing Sales, Customer Satisfaction

Merchant losses to ecommerce fraud are projected to grow to $6.4 billion by 2021 — a total that’s taking a huge bite out of revenue.

To protect themselves, merchants often overcompensate by declining any transaction that is even remotely suspicious of fraud.

But this hurts the merchant and the customer. A new report commissioned by ClearSale and researched by the Aite Group – “The Ecommerce Conundrum: Balancing False Declines and Fraud Prevention” – provides new insights into how online merchants today are navigating this challenge.

Download the White Paper

Key takeaways from the report include:

$6.4 billion

Losses due to ecommerce fraud are projected to reach $6.4 billion by 2021. But losses due to false declines are projected to reach $443 billion by 2021 – nearly 70x more than losses from fraud itself.

62%

of online merchants have seen false decline rates increase over the past two years.

66%

of merchants manually review at least 50% of all sales transactions.

Up to 30%

Half of those merchants say they decline up to 30% of manually reviewed transactions – suggesting a significant opportunity for process improvement.

72%

of merchants plan to add at least one automated fraud screening tool in the upcoming 18 months. This might include machine learning fraud analytics, outsourced fraud scores, and behavioral biometrics.

Download the white paper to learn what our research uncovered about how merchants are working
to prevent fraud, reduce false declines, and improve their overall customer experience.