Introduction

Fraud is scary, and there are many valid reasons for merchants to decline suspicious transactions in the name of fraud prevention. But often, in the quest to avoid abuse, risk-averse vendors take defensive measures too far. In 2017, the average merchant lost 1.5% of their revenue to false declines — perfectly legitimate orders, rejected because they seem suspicious.

Address mismatches, along with proxy servers, foreign IP addresses and credit cards are red flags for some fraud review operations. But addressing these with overly stringent rules and criteria has a serious cost: the annual revenue lost to false declines ($48.5b) is actually higher than the revenue lost to chargebacks ($42b). 

This eBook will explain the scope of the false decline problem and then identify five archetypes of valid customers that merchants most frequently lose to overzealous declines. Finally, we’ll offer some insights on how to keep hard-won revenue.