Did you know that global payments fraud has tripled from 2011 to 2020, reaching the staggering amount of $32.39 billion? Worse, the news from the future isn’t too great, either, as fraud is expected to cost eCommerce businesses a whopping $40.62 billion in 2027.
But there are even more alarming numbers you should know about. The concept of false positives is the enemy lurking in the dark, making you lose legitimate customers in your fraud prevention and management efforts. And they are costing you more than fraud itself. The eCommerce industry was faced with $443 billion in losses in 2021. That is how much revenue the industry has left on the table.
Is there a way out of this vicious circle? Can you recover revenue? Where do you draw the line between letting fraudsters slip through the cracks and cutting off confirmed profit-making orders?
Now, there is no doubt that recovering revenue is an ability all SaaS companies should have. But how can your business recover revenue when lacking the efficient technology and processes to monitor payments? How can you identify real consumers from fraudulent ones?
It is without a doubt that the adoption of a prevention solution that adds multiple verification layers is key. But where can one find a solution like this? Read our research study to gain real insight into data collection and better understand how the use of our AI-powered algorithms can help you recover your lost revenue and keep you way ahead of your competition.
What’s Inside It?
Leveraging the power of problem-solving AI subsets like machine learning (MI), predictive analytics, and robotic process automation (RPA) is the solution to diminishing the wrongful labeling of existing customers as fraud and limiting the amount of false-positive, a true revenue killer. Doing so, you will be saving a lot of money, not to mention ensuring a positive customer experience.
Download our research study to grasp the strength of AI’s powered algorithms trained to study customer behavior, point out real fraud in the revenue cycle, and learn more about PayPro Global’s solution and its immediate effects:
Why is there a need for change within fraud management systems?
How can payment frameworks be the driver of revenue recovery?
What was the impact of employing data-mining & Bayesian networks in fraud detection?
What would make anyone integrate a system so controversial as artificial intelligence within the heavily optimized payment ecosystems? Let us look at some statistics that might make you think twice about questioning the need to spend on unlimited analytical power and start seeing it as an investment in your company’s future.
Only 5 minutes added to the overall onboarding process can increase the drop-off rate by 200%.
Given how inventive fraudsters are, it is only natural that mainstream fraud prevention solutions are more and more complex and have the bad habit of generating a greater number of false positives.
Unfortunately, this means that you are adding friction in one of the crucial stages of the sale process. Sales leaders know just how dangerous that is in terms of capturing users. If 5 minutes added to your onboarding can result in a 200% higher drop-off rate, imagine the amount of lost revenue generated by the added fraction in the sales phase.
One of three US shoppers will not return to a website for purchases once they’ve experienced a false decline.
The problem with false positives is that once exposed, you may be suffering long-term losses. Wrongfully declining orders due to erroneous data leads to significant fragmentation in your relationship with your shoppers. In other words, you may be losing customers for good.
Additionally, the costs to repair your relationships with clients will increase, putting a strain on your customer service team. And it’s your business that suffers in the process. So keep your focus on customer satisfaction.
60% of businesses tracking false positives estimate a false-decline rate of 1-5%.
The false positives glitch in fraud detection and prevention tools is no longer news to the eCommerce industry. However, not all businesses try to put it under the microscope, not knowing how much revenue is lost because of it. Suppose your business has registered $50 million in annual revenue. Now, if your false decline rate was 5%, it would mean that we would stand to lose up to $2.5 million. That’s a pretty hefty price to pay for what can be viewed as a system error.
Selling your services is crucial. However, adjusting prices to ensure your sales are up is not a winning strategy, not in the long run. And marketing can only get so you so far. To ensure the growth of your business, invest in relevant tools that can help you recover revenue. Use AI to ensure strategic data training that will eventually lead to identifying real prospects and ruling out fraud.
We are your one-stop eCommerce solution, successfully unifying payment processing, complete subscription & billing administration, tax and fraud management, together with other innovative tools and robust systems designed to scale your business.
Being part of the SaaS & software market for almost two decades, we have gained the knowledge, experience, and expertise to help guide companies on their way to success and take the guesswork out of their growth.
Rely on our customer acquisition and retention insights and avoid making costly mistakes. Streamline your SaaS business’ road to revenue growth with PayPro Global’s team of dedicated experts & specialists.
Ready to dive into our AI research study?