$21k in additional monthly revenue
$0 fraud liability
120 hrs monthly labor eliminated
AutoPets, the inventor, manufacturer, and retailer of the Litter-Robot, is an international leader in developing highly functional pet products that make pet care easier and more enjoyable. Launched in 2000, the Litter-Robot is the highest-rated automatic self-cleaning litter box on the market. Based in Auburn Hills, MI, AutoPets has been growing quickly and has been featured as a 2017 and 2018 Inc 5000 company.
As an ecommerce retailer that sells a premium priced product, AutoPets was prone to deceptive customers trying to obtain its product using stolen credit cards and other manipulative practices. In order to protect itself, Autopets manually reviewed every high value transaction as well as orders with different bill-to and ship-to addresses. They also implemented strict AVS filters at their payment gateway. However, even with these monitoring procedures, fraudsters were still finding ways to evade detection, leaving AutoPets with large chargeback losses.
As AutoPets’ order volume exploded in 2016, they realized that they needed a different approach to fraud mitigation.
"As an e-commerce business, we believed card-not-present chargebacks were part of doing business. Once we found NoFraud, that belief changed. With the peace-of-mind NoFraud provides, AutoPets is allowed to continue day-to-day operations without fear of the liability from fraudulent consumer transactions.”
AutoPets was seeking a solution partner that was focused not only on preventing chargebacks, but also on optimizing AutoPets’ order acceptance rate. Another leading priority was the integration and implementation process as holiday season was fast approaching and they needed to get a solution in place before the .
After speaking with many providers, they felt that NoFraud’s model was the best for AutoPets: powerful technology, cardholder verification to prevent false positives coupled with an easy and straightforward implementation process. NoFraud’s software quickly and seamlessly integrated with the AutoPets merchant services system just in time for the holiday season sales spike.
Initially, AutoPets carefully reviewed every order and double-checked NoFraud’s decisions to allow transactions to go through when their AVS filters flagged a purchase. They quickly learned that 84% of the orders they were previously declining were valid. Knowing that NoFraud would cover the transaction in the case of a chargeback, AutoPets felt confident about shipping orders that they would initially have declined. NoFraud significantly reduced the occurrence of chargebacks once implemented.
Over the course of one year, NoFraud saved AutoPets approximately $70,000 in fraud-related chargebacks, while simultaneously increasing their order acceptance rate by 3.5%. Additionally, NoFraud has also saved AutoPets 40 hours per week in order processing management; which includes the the time it took for customer service and accounting staff to manually screen transactions and file chargeback disputes. Customer Service has also seen a reduced checkout friction from AVS mismatches on consumer orders. When the occasional chargeback does occur, NoFraud reimburses AutoPets for the full chargeback amount as part of their Guaranteed Chargeback Protection program.