Designer Optics Case Study
Increase in chargeback win rate
Of work eliminated annually
Signup and integration
Designer Optics was founded in 2011 based on a simple idea: to offer both fashionable, authentic name brands as well as more affordable sunglasses and eyeglasses in one place. Selling brands like Gucci, Prada, and Tom Ford significantly below MSRP, Designer Optics has experienced tremendous growth in its 9 years of operation and services customers all over the US.
The Fraud Problem
Like many small business operators, Aron Eckstein is intimately involved in many aspects of the business. As a savvy businessman, he has optimized resources for his business to function as smoothly as possible with a small team. However, there was one area that he found difficult to manage: chargebacks.
The First Attempt
The most common chargeback reason provided by the bank was “Fraud.” At first, his small team relied on the Shopify native fraud solution, canceling orders marked as high risk, spending hours reviewing medium risk orders and shipping orders that were marked as low risk. While this did reduce fraud, it did not eliminate fraud entirely, and his team was spending too much time on medium risk orders.
After speaking with colleagues in the eCommerce space and browsing reviews on the Shopify app store and G2, Designer Optics settled on NoFraud to identify and stop fraudulent orders, and reimburse them in the rare case a fraud order was missed.
The impact was immediate – his team was able to spend more time taking care of customer requests as they no longer had to manually review medium risk orders, and fighting fraud chargebacks was a thing of the past.
The Next Challenge
While the responsibility of preventing and fighting fraud chargebacks was no longer a prevalent issue, the volume of non-fraud chargebacks continued to grow proportionally to business growth. Some examples of such chargebacks are:
- An “Item Not Received” chargeback issued by a customer that had their packages stolen from their porch
- An impatient consumer who did not want to wait the necessary time for the prescription on their frames to be filled and filed a chargeback
- A shopper that did not like the color of their glasses and filed a chargeback instead of reaching out to customer service.
All of those chargebacks had to be thoroughly researched and detailed chargeback rebuttals had to be submitted to their processor in a narrow timeframe or risk losing hundreds of thousands of dollars.
Before looking into additional software providers to try to solve this problem, Aron reached out to NoFraud, who had an excellent track record of winning friendly fraud chargebacks.
The Solution: Finding NoFraud
Aron’s timing was excellent. NoFraud had just started offering full chargeback management support, as it had been hearing similar frustrations from many of its customers. Signing up was as simple as signing a contract, and no integration was needed as they were an existing NoFraud customer.
Once again, the impact on the Designer Optics team was immediate. Once enrolled in NoFraud’s Chargeback Management service, receiving and keeping track of new chargeback notices, gathering evidence, building the rebuttal cases, converting them into PDFs and uploading them to their processor was no longer a tedious task that his team had to take care of. Moreso, aside from the labor savings, there was a significant financial boost: NoFraud was able to increase Designer Optic’s chargeback win rate by 17%.
“We were swamped with chargebacks until NoFraud stepped in and completely alleviated the burden from us. They have great communication and wonderful service! My only regret is that I did not reach out to them sooner.”Aron Eckstein, Owner, Designer Optics Corp
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