16% increase in order approval rate
$55K in yearly overhead eliminated
$0 fraud liability
ToyWiz, a family owned retail business in Nanuet, NY, has been an industry leader in collectible cards, games and toys for over 20 years. With decades of expertise, ToyWiz has developed the knowledge to accurately predict popular trends in the market and stock a highly curated selection of quality and sought-after products. Their successful online store, ToyWiz.com, has become the go-to destination for shopping toys and games.
When ToyWiz originally launched their online store on the Yahoo Small Business platform, it was ill-prepared for the wave of fraud attacks it encountered and was quickly overwhelmed with chargebacks. The owners segmented the three different types of fraud from which they had to defend themselves:
To fight back, ToyWiz implemented tight security protocols based on their previous chargeback patterns. Some of their restrictive practices included:
This labor intensive process reduced the fraud incidence rate so dramatically that representatives of PayPal flew to meet the owners of Toywiz to learn their best practices
However, a sobering analysis revealed that Toywiz was turning away 15% of potentially profitable sales due to the slightest suspicion of fraud. The collateral damage of their prevention methods was that a substantial chunk of potential income was effectively being discarded.
In an effort to strike a balance between risk and appropriate revenue, ToyWiz reviewed their security restrictions. “We know toys, that’s our business”, said Greg Hart, Director of eCommerce. “We are simply not in the business of fraud prevention.” In this vein, Greg decided to reach out to their processor, Fidelity Payments, for a recommendation on how to effectively prevent fraud without risking good business.
Fidelity Payments suggested that they associate with NoFraud, whom some of their other clients had employed successfully in their struggles with fraud. As Toywiz had replatformed to BigCommerce, integrating was simply a matter of downloading the NoFraud app in the BigCommerce app marketplace. NoFraud’s automated solution immediately began to screen transactions for fraud. Although ToyWiz was still a high fraud target, NoFraud was easily able to distinguish between legitimate and fraudulent orders, dramatically mitigating ToyWiz’s fraud exposure — as well eliminating one and one half headcount associated with fraud review.
“When I used to walk into the office in the morning, I would see the customer service reps scrambling to review the orders quickly, with enough time to make the shipping deadlines. Now, when I come in, the office is peaceful, without any frantic activity. I know if NoFraud said the order is safe to ship, we can ship the goods without any fear of chargebacks.”