About Korsit
Korsit offers a wide range of prepaid cards, gift cards and game keys to end users and businesses worldwide. Their 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. They 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 is naturally prone to many different types of fraud. Unfortunately, users were getting scammed via phishing attempts and purchasing cards for someone they thought was in desperate need of one, i.e., a fake text from a CEO asking their assistant for gift cards, or a fraudster using a stolen credit card and purchasing a large number of cards from one device.
Costly chargebacks
Where there’s payment fraud, there are chargebacks. Outside of the monetary cost that merchants incur from chargebacks, they can harm business relationships with payment processors. Exceeding the threshold of chargebacks can result in payment processors terminating business with merchants. With payment fraud occurrences mounting, 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 due to the increase in chargebacks.
Maintaining business reputation
Beyond financial loss, 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 drives new customers to its website regularly. Customers that 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 on a review website.
Why Fingerprint
Korsit uses an in-house fraud engine combined with data they ingest from other third-party fraud prevention tools. Since their customers don’t need to create an account to purchase gift cards, they found it hard to identify repeat offenders of payment fraud, given they were only identifying customers with previous purchases associated with their email.
Pepijn Jansen, fraud prevention officer at Korsit, credits Fingerprint’s reliability and accuracy to its success as a business in working to tame payment fraud: “We heavily rely on Fingerprint’s signals to power our internal fraud detection solution. 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 and achievements
Reduction in chargebacks
By incorporating Fingerprint into their fraud engine, Korsit generates a visitor ID for customers as 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.
Conclusion
Fingerprint has proven to be a game-changing device intelligence solution for Korsit in their successful attempt to reduce instances of payment fraud on their website. As a leading payment and gift card eCommerce company, Korsit found Fingerprint’s 99.5% accurate Visitor ID and quick response API to be the perfect solution to not only reduce payment fraud and chargebacks, but continue to enable a seamless experience for its customers.
