How Korsit reduces payment fraud with Fingerprint
Use Case
Payment Fraud
Industry
B2C Marketplace
Company Size
200
Region
Netherlands
Ready to stop payment fraud and chargebacks?
About Korsit
Korsit offers a wide range of prepaid cards, gift cards and game keys to end users and businesses worldwide. The company's innovative prepaid solutions meet current and future technological demands, customer expectations and marketing insights.
The challenge
Korsit's B2C business, Dundle, sells online gift cards, payment cards, and gaming credits. It needed a way to prevent fraudulent payments and costly chargebacks all while maintaining a low-friction customer experience.
Stopping payment fraud
Korsit's B2C marketplace allows customers to purchase online gift and payment cards, which are targets for many different types of fraud. Users were getting scammed via phishing attempts and purchasing cards for someone they thought was in desperate need of one. For example, an employee would receive a fake text from a CEO them to purchase gift cards. Another example of fraud targeting gift cards would be a fraudster using stolen credit card credentials to purchase a large number of cards from one device.
Mitigating costly chargebacks
Where there's payment fraud, there are chargebacks. On top of the costs that merchants incur, chargebacks can also harm business relationships with payment processors. Exceeding the threshold of chargebacks can result in payment processors terminating business with merchants. Korsit needed a way to reduce the number of chargebacks, not only to prevent additional financial losses but to curtail the risk of losing partnerships with payment processors.
Maintaining business reputation
Beyond financial impacts, payment fraud can also damage a business's reputation with customers and review sites. Korsit maintains a strong relationship with its customers and scores well on review sites like Trustpilot, which helps drive new customers to its website. Customers who see charges on their card from Korsit that they didn't make may be discouraged from shopping there again and might write a negative review about the business.
Why Fingerprint
Korsit uses an in-house fraud engine combined with data it ingests from other third-party fraud prevention tools. Since Korsit's customers don't need to create an account to purchase gift cards, the company found it hard to identify repeat offenders of payment fraud since it was only identifying customers who had previous purchases associated with an email.
Pepijn Jansen, fraud prevention officer at Korsit, credits Fingerprint's reliability and accuracy to the company's success in taming payment fraud. “We heavily rely on Fingerprint's signals to power our internal fraud detection solution," shared Jansen. "Without Fingerprint, we wouldn't be able to allow customers to make purchases without creating an account, which would significantly reduce our total revenue.”
Results
Reduction in chargebacks
By incorporating Fingerprint into its fraud engine, Korsit generates a visitor ID for customers when they visit the website and again on the checkout page. Korsit can now better link purchase history to specific devices and can more easily identify telltale signs of payment fraud, such as multiple transactions from one device in rapid succession. As a result of identifying specific fraudsters with a visitor ID, Korsit reduced instances of payment fraud and, in turn, reduced the amount of chargebacks from their customers.
Key takeaways
Fingerprint has proven to be a game-changing device intelligence solution for Korsit in the company's efforts to reduce payment fraud on its website. As a leading payment and gift card e-commerce company, Korsit found Fingerprint's highly accurate Visitor ID and quick response API to be the perfect solution to not only reduce payment fraud and chargebacks, but continue to also enable a seamless experience for its customers.
