Fraud Doesn’t Play with ToyWiz Anymore, Thanks to NoFraud.

Cs icon1 17bd70a292692d7140c1de71f885b33527906c6c96b27f40012bdc3fd9df5130

16% increase in order approval rate

Cs icon2 fa37ced9eec41738736c8c4706428a9e1fd7e50167b16c136eb455dd9a819453

$55K in yearly overhead eliminated

Cs icon3 74f3757e32121aaa10ccf5fda4c1cdf91f3c725caf31a01e2329e5058fa87bfc

$0 fraud liability

Cs toywiz company 7eafae7f97f12fbc0fee0bdd0eae77d532888b69fbbb322e3512b609ebb29b9d

The Company

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,, has become the go-to destination for shopping toys and games.

The Challenge

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:

  • Adult collectors purchasing high-ticket items using stolen credit cards
  • Fraudsters committing triangulation fraud by posing as legitimate sellers offering discounted toys on third party marketplaces, such as Amazon and eBay. After receiving payment from unsuspecting shoppers, they would attempt to fill orders by purchasing the goods from Toywiz using stolen credit cards.
  • Children making purchases with their parent’s cards

To fight back, ToyWiz implemented tight security protocols based on their previous chargeback patterns. Some of their restrictive practices included:

  • Orders over a certain dollar value were automatically held for review
  • For orders over $1,000, the only acceptable payment method was wire transfer
  • Any order with a different billing and shipping address was verified by phone
  • Any customer placing more than three orders in 30 days had their orders held for review.
Cs toywiz challenge 84049f548a5222af5525040347fccf16bb20232ec21f698a96deb233fe986424

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.

The Solution

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.

The Results

“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.”

Cs toywiz author results 7330a21950de1b1046b5871307662e90e537f4b9f6f6abc310209c15b8184969

Greg Hart Director of eCommerce

In Summary
  • ToyWiz’s order decline rate dropped 90%, from 15% to 1.6%
  • 0 order shipment delays due to fraud review
  • $55,000 in yearly overhead was eliminated
  • $0 fraud liability

“When NoFraud approves transactions, we feel comfortable fulfilling orders we would have thrown away previously. This result is exactly what we were hoping for: to never need to worry about online fraud. NoFraud helped us trust our customers again and enabled us to focus more on what we do best—selling toys.”

Cs toywiz author f912f6bcc1b94a3ecb522aecb6b60d5ba017f22964dfab7b96538fd4e585a77a

Greg Hart Director of eCommerce