Chemist Warehouse Group has increased its online payments approvals, including those from first-time customers, by switching to a new fraud detection tool that uses machine learning technology.
The pharmacy franchise’s online sales rose within days of replacing its previous card verification system, which was too cautious and rejected genuine shoppers. Chemist Warehouse is now using Riskified, which sources historical and real-time identity data from a global network of merchants, minimizing the risk of rejecting legitimate orders.
Riskified also takes responsibility for fraudulent transactions and compensates Chemist Warehouse for any resulting costs. This includes chargebacks, where customers request a refund directly from their bank, bypassing the retailer.
Riskified’s chargeback guarantee covers Chemist Warehouse for “friendly fraud” chargebacks, where a legitimate customer requests a chargeback for reasons such as forgotten purchases, family members making purchases, or abusing the retailer’s returns policy.
Riskified also provides automation tools to support merchants in dispute resolution with customers who file suspicious chargebacks. Other clients of the Israeli-headquartered company include JB Hi-Fi, David Jones, and Kogan.