How Getty Images reduced its chargeback-to-sales rate over 90%
For over 25 years, Getty Images has been an expert in the editorial space. It’s a leader in visual coverage of current events, entertainment, and sports. In 2006, Getty Images acquired iStock, the original source for user-generated stock photos, vectors and illustrations, and video clips.
Getty Images and iStock are a force in the broader visual content industry. They give photographers and visual artists a platform to license content to media, designers, freelancers, small business owners, agencies, and more.
But as Getty Images moved business online exclusively, it focused on providing content to the world. It wasn’t long before the company faced the inevitable challenge of chargebacks from the fraudulent use of credit and debit cards. To avoid high chargeback rates and dispute monitoring programs, Getty Images had to get ahead of eCommerce fraud.
Kount enters the picture to help Getty Images get ahead of fraud
Getty Images wanted the flexibility to control its decision-making process to deliver smooth experiences to customers who were licensing and purchasing appropriately. But it also wanted the ability to shut down fraudulent accounts quickly and avoid chargebacks.
In 2010, Getty Images hired a consultant who recommended Kount’s eCommerce fraud prevention solutions. Kount combines adaptive AI that uses supervised and unsupervised machine learning and a flexible policy engine to decision authorizations in real time. Kount leverages its Identity Trust Global NetworkTM, with visibility into 32 billion annual interactions, to assess trust levels for payments, accounts, and logins.
Kount’s AI and machine learning technology has helped Getty Images identify more fraud and reduce false positives. The solution uses supervised and unsupervised machine learning to detect future fraudulent transactions and inform future fraud strategies. The combination of the two in Kount’s AI provides highly accurate risk scores in milliseconds.
With Kount’s ease of use and customer support, Getty Images has scaled its fraud prevention process with a small, dedicated team. And since implementing Kount, Getty Images has reduced its total chargeback-to-sale rate by over 90% according to an Aite Group report. That’s compared to Getty Images’ historical highest chargeback levels before implementing Kount.
Today, Getty Images averages a fraud decline rate of less than 0.5% and a 12% false decline rate. On average, for every 2,100 authorizations, Getty Images declines 8.4 due to a high certainty of fraud. Of that, 7.4 are fraudulent, and only one authorization is valid.
Kount helps Getty Images develop the right fraud prevention strategies
Over the decade, Getty Images has refined its approach to manage and prevent fraud. First, when Getty Images started managing fraud, it wasn’t analyzing its chargeback trends in depth. But chargeback data has valuable fraud markers that can help create new strategies and adjust existing ones.
Next, Getty Images learned that transaction data is part of the fraud picture but not the complete picture. For a better understanding of a transaction’s fraud potential, Kount helped Getty Images look at user logins, user identity data, and information from eCommerce sessions.
Finally, Getty Images learned that payments is a dynamic space. All online merchants and businesses need a trusted source to help manage changes. Kount’s partnership helped Getty Images leverage credit card data from payment processors in its fraud strategies.