No more “Wine-ing” About Chargebacks — NoFraud Helps Leading Online Wine Seller Beat $40,000 yearly in Credit Card Fraud

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2% Approval rate increase

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$20K annual overhead savings

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$40K in annual chargebacks eliminated

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The Company

Wine Chateau is one of the longest-operating online wine retailers, offering a vast selection of over 17,000 premium domestic and imported wines from around the world. Though it began 40 years ago as a brick and mortar store, and continues to operate three retail wine stores in New Jersey, Wine Chateau’s largest source of revenue is its online store, , making credit card fraud prevention a critical aspect of their daily operations.

The Challenge

In 2016, Wine Chateau knew its current fraud prevention solution had room for improvement. Employing a combination of automated gateway filters and manual screenings, Wine Chateau’s fraud prevention system was inefficient and costly. The basic gateway filters they enabled automatically declined 3 percent of their transactions, and their manual review process declined an additional 0.5 percent of orders, resulting in an overall order decline rate of 3.5 percent. Many legitimate orders were cancelled, resulting in upset customers and increased customer service inquiries. Making matters worse, their manual review process frequently delayed shipments, especially during busy seasons or when the company was short-staffed, and cost Wine Chateau $20,000 in annual overhead to maintain.

Despite their best efforts, Wine Chateau’s gateway filters and manual review process failed to provide the level of security that the company needed to fight fraud. In the year before implementing NoFraud, Wine Chateau incurred over $40,000 in chargebacks. They knew there had to be a better way.

The Solution

When Wine Chateau replatformed their site to Shopify, they researched the various fraud prevention options available to them. Ultimately, they decided on NoFraud, specifically because of their thorough and highly effective review process. One of Wine Chateau’s biggest challenges was the declining of legitimate orders, and they were attracted to NoFraud’s process of validating high-risk orders without necessitating Wine Chateau to provide proof of the orders’ validity.

Integrating NoFraud took less than 10 minutes. After the client downloaded the app from the Shopify app store, NoFraud’s intelligent review system immediately got to work, accurately identifying actual fraudulent transactions.

The Results

Since beginning to use NoFraud, Wine Chateau has:

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Recovered an estimated $40,000 in lost revenue per year previously lost to chargebacks

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Reduced overhead costs by $20,000 annually

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Boosted the approval rate by 2% for legitimate online transactions

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Eliminated stressful bottlenecks and shipment delays due to manual review, leading to higher customer satisfaction.

What’s more, the manpower that was previously needed to conduct manual screenings has been redeployed to tasks that add revenue to the company. And, as for any remaining chargebacks that managed to pass through NoFraud’s system, NoFraud reimbursed them under their Chargeback Protection Guarantee.

"Implementing NoFraud has vastly improved our business operations, not only by significantly reducing chargebacks and false positives, but by turning our inefficient fraud prevention process into a simple pass/fail decision that saves us loads of time and stress.“

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Sourabh Abrol CEO, Wine Chateau