CASE STUDY
MisFit Makeup Gains Full Control Over Fraud Decisioning with Kount
MisFit Makeup* is a global cosmetics company known for its bold and colorful products — inspiring self expression to valued consumers. The brand offers 100% vegan and cruelty-free products.
80%
decrease in chargeback rate
70%
reduction in manual reviews
THE PROBLEM
Inefficient fraud solution.
When MisFit Makeup was a young ecommerce company, they proactively sought help for fraud prevention. While reviewing possible solutions, MisFit Makeup was enticed by a service provider with a chargeback guarantee. However, it quickly became apparent that the guarantee wasn't nearly as beneficial as it first seemed.
The company experienced incredible growth, but their outsourced fraud solution couldn't keep up. MisFit Makeup's chargeback rate shot up to 3-4% — well above card brand thresholds. And attempting to bring chargeback activity down simply added a colossal amount of manual reviews. In fact, during the busy season, MisFit Makeup's fraud team spent 60-70 hours a week manually reviewing between 500 and 700 orders per day.
To add insult to injury, the service provider was a "black box" with little transparency on how decisions were made and even less control over the automation.
MisFit Makeup grew frustrated and began to search for a new solution that would provide the results they expected.
"They were a black box, so we didn’t have control. The end result was too many bad orders were scored good and too many good orders were scored as bad."
— Fraud prevention coordinator, MisFit Makeup
THE SOLUTION
Totally customizable fraud prevention.
MisFit Makeup chose Kount to replace their poor performing service provider, recognizing that actual prevention was far more beneficial than the empty promises of a chargeback guarantee.
Kount's team of experts helped MisFit Makeup create a personalized fraud management strategy with customizable policies for decisioning. And with greater transparency, the company was able to solve issues that had previously been hidden.
For example, it’s completely normal — and safe — for some of the brand's distributors to use one or more credit cards and place hundreds of orders in a day. Yet the company's previous service provider blocked this activity as fraud — losing MisFit Makeup thousands of dollars daily. But with Kount, MisFit Makeup can create different rulesets for these specific situations, helping increase orders and reduce false declines.
We quickly realized the value that Kount could provide and how the company could ease our frustration.
— Fraud prevention coordinator, MisFit Makeup
THE RESULTS
Complete control. Significantly less fraud.
Thanks to Kount’s scalable solutions, MisFit Makeup can safely grow the business without worrying about fraud. Kount’s multi-layered approach has reduced chargebacks to below 1% and has cut down the amount of daily manual reviews by 70%.
The best part is that MisFit Makeup has greater control over fraud decisioning rules. As a result, they can customize how customers and distributors engage with their ecommerce platforms.
With greater control and fewer manual reviews, we can provide a seamless experience for our global customer base and continue to grow.
— Fraud prevention coordinator, MisFit Makeup
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* Our customer asked that their name be anonymous.