Don’t let international fraud deter you from going global! Zonos has technology and service options that range from complementing your current fraud monitoring all the way to mitigating any risk you face from fraudulent chargebacks.
One of the biggest mistakes online retailers make when addressing fraud is using broad strokes, e.g., blocking all Indonesian IP addresses from hitting your site or requiring customers to wire money to pay for their order, to eliminate the possibility of fraudsters placing orders on their web store. The major flaw with this approach is that there are a lot of legitimate buyers that may not be able to complete orders and you are now taking a hit on conversion and top-line revenue. Zonos has a suite of fraud tools that target, identify and block individual fraudsters opposed to broad stroke changes that may impact legitimate buyers, think of it as fishing with a spear rather than a net.
International fraud can be much harder to identify than domestic fraud. International orders have a higher likelihood of nuances, such as billing to a foreign address, shipping within the United States, higher order values, or higher quantities of a single item. These circumstances may sound alarms, but in many cases, they shouldn’t as international buyers typically order more to justify the higher shipping costs and frequently ship to freight forwarders within the US. Below is a list of possible variables we look at to determine if we will accept an order and if additional screening is needed.
- Quantities of individual items
- Type and value of individual items
- Total order value
- Billing address
- Shipping address
- Shoppers IP address
- All lower case text in form fields
- Previous fraud orders associated with any of the customer’s data
- Number of payment attempts
- Number of different payment method attempts
- Bank BIN
- AVS Codes
- 3D secure codes
- PayPal seller protection eligibility
Zonos offers three different fraud services
Zonos Checkout Fraud Screening offers standard fraud screening at checkout for no additional cost.
Zonos Fraud Decoder offers additional checkout screening capabilities and gives you the tools and insights to manage fraud on your own.
Zonos Fraud Coverage leaves you with zero chargeback risk plus the Zonos Fraud Decoder insights.
Zonos Checkout Fraud Screening
Zonos is continually striving to improve our fraud intelligence and your conversion; we are extremely diligent when blocking a buyer from placing an order as we want you to get as many legitimate orders as possible and as few chargebacks as possible. Included with the Zonos Checkout is our standard fraud screening to approve legitimate orders and reject fraudulent attempts. However, if you have not chosen to utilize the or Fraud Decoder or Fraud Coverage you are responsible for chargebacks and to ensure you screen your international orders.
Zonos Fraud Decoder
The Zonos Fraud Decoder gives you full insights on high-risk orders and the tools you need to manage and approve orders for an additional 1% transactional fee. With the Fraud Decoder, you receive additional checkout screening like 3D Secure and the ability to set a fraud risk level for your web store. Also, higher risk attempts will be placed in a fraud worklist in a “Validating” status. Based on the fraud tolerances in place for your web store and the payment gateways enabled Zonos may trigger additional verification within the checkout to authenticate a buyer, one example of this is 3D secure. 3D secure is not prompted on all orders that occur in the Zonos checkout but rather is targeted to potential buyers that we may block from completing an order without the additional 3D secure verification, approximately 8% of screened orders in the Zonos checkout are prompted for 3D Secure.
The Fraud Decoder presents you with a worklist of orders in a “Validating” status where you will have access to additional insights (see image below) and other tools to determine if an order should be approved. Typically less than 15% of orders end up on fraud hold for review.
Zonos Fraud Coverage
With Zonos Fraud Coverage, you have zero fraud liability or risk. With Zonos Payments you will never see the chargeback, if you are using a [3rd party payment gateway], simply indicate inside Zonos platform the order that you received a fraudulent chargeback and provide the chargeback notice to the support team to receive your reimbursement. Zonos Fraud Coverage is 3% per transaction and is only charged on completed, not canceled orders. Fraud coverage is optimal for companies looking to scale their operation. It reduces the amount of time spent on monitoring fraudulent orders and adds new orders your team or system may not have approved in the first place. Zonos will approve new orders placed on fraud hold for review within one business day, and typically less than 15% of orders end up on fraud hold for review.
Fraud Screening Status Definitions
As orders progress through the fraud approval process, there are a few different status labels within the Zonos backend. These statuses’ allow you and your team to update customers and progress orders through fulfillment.
Validating - Order is being reviewed or pending a response from the customer. Payment has been authorized, not yet captured.
Verified - Order has been reviewed and approved. Payment is captured, and the order is now cleared to ship.
Cancelled - Order has been canceled due to suspected fraud or customer’s inability to provide the information requested by you or Zonos, whoever is doing the fraud screening. The payment authorization is voided and should disappear from the customer’s billing statement within 5-7 business days. Customer will receive a cancellation notification email.