Karity Case Study
Decreased manual reviews
Orders with an instant fraud decision
Karity.com designs, manufactures, and sells professional-grade cosmetic products directly to consumers through its online store. Its mission is to provide customers with high-quality, luxury cosmetics and makeup tools at affordable prices. To date, Karity has sold over 3 million units of its uniquely developed beauty aids.
Karity offers highly sought after, limited-edition products that sell out quickly. But they faced a major obstacle: Their eyeshadow palettes were often resold on third-party marketplaces such as eBay, enticing fraudsters to buy those items with stolen cards and resell the goods quickly.
Karity had been using a fraud prevention product that was native to their payment gateway on their Magento store that worked satisfactorily. When Karity moved their store to Shopify, they initially chose Shopify’s Fraud Filter as a first line of defense against fraud. Unfortunately, the software lacked precision and routinely declined legitimate transactions, resulting in weekly calls from irritated customers regarding their unnecessarily canceled orders. Plus, despite the app’s overzealous fraud screening, Karity was still getting chargebacks every month.
To optimize Shopify’s Fraud Filter results, Karity began manually reviewing all orders totaling $100 or more, those with billing and shipping mismatches, as well as any order with expedited shipping. Karity found themselves manually reviewing 10% of their orders, of which 95% were identified as legitimate. With an extremely loyal fanbase, every time Karity rolled out a new product, its sales exploded. This caused extreme pressure on the single individual tasked with manually reviewing orders. Orders with expedited shipping got stuck in the review queue, which snowballed into additional customer service inquiries, upset customers and an overwhelmed staff. Karity realized that in order to grow their business, they needed a more efficient approach to fraud prevention.
After extensive research on the Shopify app store, Karity chose NoFraud because of its positive customer reviews and affordable pricing.
NoFraud’s automated system integrated easily with Karity’s store and instantly began identifying and canceling their fraudulent transactions. Legitimate orders were correctly identified and processed, immediately increasing sales. The efficacy of NoFraud’s software enabled Karity to shift from auto-approving only 90% of its orders to 99.7% of its orders.
“The morning after we started selling a heavily promoted new product and sales skyrocket and I saw how many orders were held up in the fraud review queue, I quickly realized that in order to scale, we needed a more automated solution. NoFraud had been instrumental in assisting Karity to expand. Our orders are processed swiftly and without fear of fraud chargebacks.”Isaac Rami
NoFraud’s automated solution phased out Karity’s need for manual screenings, freeing resources and manpower that are now better used for revenue-producing tasks.
Order delays due to fraud screening disappeared and Karity now introduces new products on its site without any fear of fraud or order delays. Karity’s chargeback liability has been completely eliminated by NoFraud’s guaranteed coverage.
- 10% of orders manually reviewed by Karity
- 90% of orders auto-approved
- 40 hrs/week spent on manual review
- 3-5 chargebacks per month
- 0.3% of orders manually reviewed by NoFraud
- 99.7% of orders auto-approved
- 0 hrs/week spent on manual review
- $0 per month lost to chargebacks
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