Today’s Top Fraud Fighting Solutions Are Not Created Equal: Kount vs. Signifyd
Kount delves into the enterprise fraud market to illustrate how solutions compare. This analysis is built using The Paypers’ recently published “Web Fraud Prevention & Online Authentication Market Guide” for 2017-2018. The Paypers asked each vendor to identify key features that fell under six general categories, including: Technology Platform, Methodology, Intelligence, Digital Identity Verifications, Online Authentication and Other. From this information, Kount extracted and laid out a side-by-side comparison of Signifyd and Kount’s solutions (see below).
The comparison is a stark view of clear differentiated fraud-fighting techniques and strategies. Signifyd’s messaging surrounding “guaranteed fraud protection” for eCommerce sounds great at first, but a deeper look at the numbers and other gaps, such as merchants selling digital goods, in the Signifyd product are worth noting.
From a feature perspective, Signifyd falls short in the Digital Identity Verification and Intelligence categories. Specifically, under the Digital Identity Verification Category, The Paypers highlights that Signifyd does not provide its customers with any support, including Personable Identifiable Information (PII) Validation, Small Transaction Verification or Email Verification. The Paypers also illustrates that under the Intelligence category, Signifyd was not able to offer recommended recovery features.
Beyond features, Signifyd has rallied around the concept of “guaranteed fraud protection.” For small organizations, this messaging is appealing and easy for merchants to grasp, however at what cost? Since the charges for the service are based on a percentage of the total transaction value, the cost can be high. Larger more sophisticated merchants rely on this type of service as a last resort, sort of a “save-a-sale” for transactions that would otherwise be declined, passing the risk along to the vendor.
As one customer shared, “Signifyd is a black box that runs transactional data to present the customers with either an approved or needs further review decision. What we gained with Kount was control.” Kount provides visibility into each transaction and the ability to influence the outcome with domain expertise. Having the ability to apply company policies and other relevant information and domain expertise “allowed me to reduce the number of daily manual reviews from 500-600 with Signifyd to under 100 during a busy season.” Although the transactions are guaranteed, Signifyd’s solution can results in a higher chargeback rates for merchants and higher false positives. One customer that transitioned from Signifyd to Kount shared that they were running at a “3-4 percent chargeback rate and with Kount lowered chargeback rates to below 1 percent.”
Kount’s suite of solutions are built atop of its patented machine learning (ML) technology. Overlaying customization, domain expertise and machine learning within an enterprise fraud solution plays a large role in other parts of the merchant’s business, including the reductions of chargebacks and manual reviews.
Kount’s comprehensive methodology and solution set has been recognized by merchants around the world as easy to implement and easy to use. Kount is built from the ground up to maximize response time, accuracy, and information available to the merchant.
As published in The Payper’s Web Fraud Prevention and Online Authentication Market Guide.