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CASE STUDY
Sporting Goods Manufacturer Achieves .039% Chargeback Rate with Kount
Tactical Craft* is an international sporting goods manufacturer whose mission is to support outdoor enthusiasts by providing modern technologies, clothing, accessories, and services.
58%
decrease in chargebacks
.039%
chargeback rate
THE PROBLEM
Manual fraud processes struggle to keep up with growth.
Before Kount, Tactical Craft was managing fraud internally — which meant someone had to review all orders for signs of suspicious activity manually. However, as the company’s e-commerce store grew, this strategy quickly proved ineffective once fraudsters began targeting the business.
As fraudsters became more sophisticated and difficult to identify, the team knew it was time to strengthen their approach. Chargeback rates started to rise, and the company began losing inventory and revenue because fraudulent orders were being fulfilled. Had this trend continued, the company knew it could face penalties from major card brands and the possibility of payment processing being shut down entirely.
Thus, Tactical Craft decided to find a fraud solution provider who could help the business get back on track and positively impact its future.
“Our fraud issues were a growing concern. We were facing the possibility of running into trouble — like paying more to process cards or not being able to accept card payments at all.”
— Compliance Administrator, Tactical Craft
THE SOLUTION
A seamlessly integrated tool with the highest ROI possible.
Tactical Craft looked into a few different fraud solution providers. The main criteria they were looking for included a tool that:
- Produced excellent fraud reduction results.
- Could integrate with the company’s existing tech stack — meaning that it could easily communicate with each program.
- Was cost-effective.
Kount was the only provider that met all requirements. The solution also offered various data points and reporting features that Tactical Craft didn’t realize they needed, making the partnership an easy option to onboard.
“We partnered with Kount because the solution gave us access to data, reporting features, and a team of experts that we otherwise wouldn't have had available. The decision has been incredibly beneficial to our fraud prevention strategy..”
— Compliance Administrator, Tactical Craft
THE RESULTS
Improvements across the board.
Soon after implementing Kount, Tactical Craft experienced a variety of successes across the business.
Chargebacks
Since implementing the Kount solution, Tactical Craft has seen a 58% reduction in its chargeback rate. This success is attributed to the proactive fraud mitigation approach that Kount allows them to take. With the breadth of information available for each customer transaction, fraudulent orders are easily identified and stopped before they ever reach fulfillment.
Additionally, with access to Kount’s global data network and integrated chargeback prevention tools such as Order Insights and Inform, Tactical Craft can give issuers more visibility into transactions. In turn, issuers can help fight chargebacks for the company, which is critical to maintaining a low chargeback rate.
Fraud
With the Kount solution, managing fraud has become significantly easier for Tactical Craft. The technology easily identifies and blocks fraudsters. When they return — as they often do — the company can see connections to previous fraud attempts and block those transactions.
Inevitably, when fraudsters realize their scam is ineffective, they become more sophisticated and change their tactics. However, Tactical Craft can quickly adapt and protect against emerging threats. For example, one summer, the company noticed a small handful of fraudulent orders were making it past the initial filters and to the fulfillment stage. Tactical Craft analyzed these orders within the Kount software, identified a common data point amongst them, and, within minutes, wrote a new rule that eliminated the risk.
Tactical Craft also regularly uses Kount’s VIP List feature to automatically send certain orders for review or approval. For example, they can add known good customers to an auto-approve list to provide a seamless, quick checkout experience.
Operational Processes
The Kount solution has also improved operational efficiencies among Tactical Craft’s internal teams. Because Kount is integrated with all of the company’s existing software and strategically positioned to run before other operational processes (payment collection, fulfillment, etc.), there are fewer interruptions throughout the day due to fraud-related issues. Fraud is stopped upfront, so fewer back-and-forth communications are necessary between the fulfillment, customer service, and accounting teams. Instead, they can focus on activities that grow the business.
Additionally, the company has refined some of its customer service processes to improve the customer experience. For example, if an order comes in with information that looks misspelled or entered incorrectly, an employee will call the customer to correct the order details. Customers appreciate these calls, as they give them a chance to speak to a live employee and ask any lingering questions they may have about the product.
“Thanks to Kount, we don’t have to worry about the risks of doing business online. The technology takes care of that for us so that we can focus on activities that grow the business.”
— Compliance Administrator, Tactical Craft
GET STARTED TODAY
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Reach out to our team. We’ll work with you to develop a complete fraud management strategy that fits your specific business needs.
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* Our customer asked that their name be anonymous.