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How Accertify helped Express cut its order held rate by 80% and reduced its peak chargeback rate by 91%.
Express launched its e-commerce operations in July 2008 and has seen rapid growth since then. Web sales rose 25.8% in 2013 to $341 million and constituted 15.5% of total sales – placing Express at No. 97 in the Internet Retailer Top 500. Protecting this channel from fraud and minimizing chargebacks is a priority, according to Steve Nicholas, Director of E-commerce Operations at Express. Initially, online fraud was not a major issue because web sales were low and did not attract fraudsters. But as web sales grew, so did the attention of fraudsters, which eventually resulted in an average chargeback rate of .85% during the period of October 2009 – September 2010.
In 2010, Express spent three months evaluating fraud management solutions. Priorities included a solution that would automatically process a broad range of fraud data streams, deep analytics and a flexible rules capability allowing the fine tuning of analytics to address a rapidly changing fraud landscape. Express chose Accertify Fraud Management, and following a three month implementation the solution went live in October 2010. “We noticed improvements almost immediately in terms of fewer chargebacks,” says Nicholas. “This allowed us to instantly drop the high order held rate of about 25% to about 5%, and significantly lowered our labor costs associated with manual review.” The chargeback rate averaged .14% during 2013.