MMA Warehouse Knocks Out Fraud... for Good This Time

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8.9% Increased approval rate

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0 Manual review

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40% Decrease in fees

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The Company

Established in 2004, MMA Warehouse LLC is an online retailer based in the United States that services the mixed martial arts and Brazilian jiu-jitsu industry. Its aim is to curate high-quality martial arts merchandise from around the world and offer its customers the best selection and price. MMA Warehouse ships domestically and internationally as it continues to expand this niche market.

The Challenge

Fraud was a daily problem for MMA Warehouse, especially when it came to international orders. Their selective product offering features sought-after brands—making them a target for both fraudsters who wanted the products themselves as well as those seeking to resell them on eBay and other third-party marketplaces.

Confronting an escalating volume of chargebacks, MMA’s first line of defense was to manually review every transaction that would be shipping internationally, as well as domestic orders that looked suspicious. This procedure drained a considerable amount of time and manpower. MMA Warehouse staff spent 3 hours a day poring over Google street maps and scrolling through Facebook accounts in efforts to validate suspicious customers’ identities. When their research did not yield concrete results, MMA Warehouse would contact customers directly for personal information to verify their purchase. This, in turn, generated complaints from customers that this procedure was unwelcome, even if necessary.

As the company grew, finding an automated process became critical. So, in 2015, MMA Warehouse turned to a full-service fraud prevention company, which we will call Solution X. Solution X promised to completely eliminate the manual review of transactions. To that end, they automated the screening process and guaranteed select transactions in case of a fraud chargeback. Initially, MMA Warehouse was relieved that they no longer needed to review orders for fraud, and they relied exclusively on Solution X’s fraud results.

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However, after a few short months, MMA Warehouse noticed a steady uptick in customer service complaints from angry customers asking why their orders were canceled. After a careful analysis, they realized that Solution X had been declining 9.6% of their transactions, many of which were deemed legitimate upon independent review by MMA Warehouse. Ultimately, MMA Warehouse was forced to return to manual screening to “dispute” invalid transaction declines by Solution X. Realizing that they were not much better off then they were before they implemented Solution X, MMA Warehouse decided to explore alternative solutions that would identify fraud with increased precision.

The Solution

In January 2018, after some thorough research on eCommerce forums and Shopify networking groups, MMA Warehouse decided on NoFraud as their vendor of choice, hoping that NoFraud would provide a higher level of accuracy than Solution X had. Within 10 minutes of the MMA Warehouse team installing the NoFraud app, NoFraud’s pass/fail protocol immediately began to distinguish legitimate transactions from fraudulent ones. The difference in the approval rate was immediately apparent. The MMA customer service team carefully monitored their order interface, waiting for the order declines to appear. They were pleased to discover that they were few and far between. Moreover, if a transaction required a review, NoFraud’s intensive manual review process provided a strong level of confidence in the accuracy of their decisions. While, in the first few weeks of using the NoFraud solution, the MMA team continued to review every transaction NoFraud declined, this practice faded quickly once the team realized they could be confident in NoFraud’s high level of detection accuracy.

The Results

Like the previous solution, NoFraud provided a guarantee under which all chargebacks would be fully reimbursed. However, where NoFraud differed was in their higher order approval rate and its impact on MMA Warehouses’ order management flow. Their order approval rate increased from 89.9% with Solution X to 97.9% with NoFraud, eliminating the need to perform any manual review of orders. The customer complaints that had resulted from the need to contact customers to validate their orders disappeared and customer satisfaction rose significantly. To top it off, NoFraud was able to provide MMA Warehouse a more competitive fee for superior services, solidifying NoFraud as the all-around better provider in the eyes of MMA Warehouse.

Solution X

89.9 %

NoFraud

97.9 %

50%

100%

Cs mika casey 4b5837081b075292b4fb772e06e923f73d2d085a5e284dfe82641d2fc7593f50

"Our previous solution had a high incidence of transactions that were declined a guarantee, particularly international transactions We then had to spend time validating those transactions, most of which were legitimate orders. NoFraud has made our order processing flow the easiest it's ever been. Their approval rate is significantly higher than that of our previous solution. Their review process is very thorough and results in relatively few failed transactions. My only regret is that we didn't switch to NoFraud sooner."

Cs mma warehouse author 61ae3734207157895a7171f36991d1202748a15267224845c7bc2b73d38fa5e0

Mika Casey CEO