Riskified — Chargeback Prevention

Frequently Asked Questions

What business model does Riskified offer iGaming operators: chargeback guarantee included in the price or payment per approved transaction?

Riskified offers iGaming operators a chargeback guarantee business model. This means that Riskified's fee includes full coverage for any fraudulent chargebacks that may occur after a transaction has been approved by their system. Operators pay a per-approved-transaction fee but are freed from the financial and operational liability associated with chargebacks, transferring fraud risk and management to Riskified. This approach provides cost predictability and financial security.

When was Riskified founded, in which country is it based, and in which e-commerce verticals does it have the strongest presence besides iGaming?

Riskified was founded in 2013 and is headquartered in Israel, with additional offices in the United States. In addition to its growing presence in iGaming, the company has established a strong foothold in various e-commerce verticals. Notably, they have made significant contributions in fashion and retail, consumer electronics, travel and airlines, and luxury goods. Their machine learning technology adapts to the unique characteristics of each sector to provide customized and efficient anti-fraud solutions.

What percentage of transaction value do platforms like Riskified charge, and by how much do they reduce the average chargeback rate in casinos?

The percentage that platforms like Riskified charge on transaction value varies, generally ranging between 0.5% and 2%, depending on volume, the inherent risk of the business, and the specific agreement with the operator. In the online casino sector, Riskified has been shown to significantly reduce the rate of fraudulent chargebacks, often decreasing the average chargeback rate by 70% to 90%. This translates into substantial savings and an improvement in operational profitability.

Why Riskified uses a chargeback guarantee model instead of traditional scoring and how it benefits casino operators Riskified's chargeback guarantee model offers several advantages over traditional scoring methods, particularly for casino operators: **1. Financial Protection and Risk Transfer:** * **Guaranteed Chargeback Coverage:** Unlike traditional scoring, which only provides a risk assessment, Riskified assumes full financial liability for approved transactions that later result in a chargeback due to fraud. This means if Riskified approves a transaction and it turns out to be fraudulent, Riskified reimburses the casino operator for the full amount of the chargeback. * **Predictable Costs:** Casino operators can accurately budget for fraud prevention costs, as they are not subject to unexpected losses from chargebacks on approved transactions. **2. Increased Approval Rates and Revenue:** * **Reduced False Declines:** Traditional scoring models often err on the side of caution, leading to a higher number of false declines (legitimate transactions rejected due to perceived risk). Riskified's advanced machine learning algorithms and extensive data network allow for more accurate fraud detection, resulting in fewer false declines and higher approval rates for legitimate players. * **Optimized Player Acquisition:** By approving more legitimate transactions, casino operators can onboard more players and increase their revenue without taking on additional fraud risk. **3. Operational Efficiency and Reduced Manual Review:** * **Automated Decision-Making:** Riskified's system automates fraud decisions, significantly reducing the need for manual review by the casino's fraud team. This frees up valuable resources, allowing staff to focus on other critical tasks. * **Faster Processing:** Automated decisions lead to faster transaction processing, improving the player experience and reducing friction during deposits. **4. Enhanced Player Experience:** * **Seamless Onboarding:** Players experience fewer delays and rejections during the deposit process, leading to a smoother and more positive overall experience. * **Reduced Frustration:** Legitimate players are less likely to be frustrated by unwarranted declines, which can lead to customer churn. **5. Advanced Machine Learning and Data Network:** * **Sophisticated Fraud Detection:** Riskified leverages a vast network of data from thousands of merchants across various industries. This collective intelligence, combined with advanced machine learning, allows for more accurate and adaptive fraud detection than a single casino's internal data could provide. * **Adapting to Evolving Threats:** The system continuously learns from new fraud patterns, ensuring that the protection remains effective against emerging threats. **In summary, Riskified's chargeback guarantee model benefits casino operators by:** * **Eliminating financial risk from fraudulent chargebacks.** * **Maximizing revenue through higher approval rates for legitimate players.** * **Streamlining operations and reducing manual fraud review.** * **Improving the overall player experience.** * **Providing superior fraud protection through advanced technology and a vast data network.**?

Riskified uses a chargeback guarantee model instead of traditional scoring because it assumes the financial risk of fraud, rather than just evaluating it. Traditional scoring only assigns a risk score, leaving the final decision and chargeback liability to the operator. By guaranteeing approved transactions, Riskified frees the casino operator from the financial and administrative burden of chargebacks, allowing them to confidently accept more legitimate transactions, increase revenue, and reduce operational costs associated with dispute management.

How does Riskified Chargebacks Casino help reduce friendly fraud and fraudulent disputes on online gaming platforms?

Riskified chargebacks casino helps reduce friendly fraud and fraudulent disputes by thoroughly analyzing each transaction in real time. Its artificial intelligence and machine learning identify anomalous behavioral patterns that are not detected by traditional systems. This includes detecting users who attempt to claim a chargeback for services received (friendly fraud) or who use stolen cards. By approving only legitimate transactions and guaranteeing approved ones, Riskified prevents these fraudulent disputes from reaching the operator, saving time and money.