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Case Study: Digital Goods Platform

Discover how they reduced chargebacks and increased sales.

The popularity of digital goods is booming – not only with consumers, but fraudsters too. Because delivery is instantaneous, getting the merchandise and quickly reselling it (where possible) is much easier than with physical goods. But the bigger problem is so-called friendly fraud: up to 80% or higher is typical for many digital goods providers. This leads to ongoing chargeback pain and repeated abuse of the digital account.

Friendly or otherwise, when fraud rises and chargebacks pile up, not only do costs skyrocket and the customer experience deteriorates, digital goods merchants lose the high margin revenue they depend on. So, it's no surprise that a leading digital goods merchant contacted Ethoca looking for help. The use of their service was at an all-time high, but so was chargeback pain. They needed a way to cut costs and stop chargebacks. Thankfully, Ethoca had the solution.

In this case study, we explain how this retailer was able to:

  • Eliminate chargebacks and maximize good sales
  • Bolster fraud screening to identify future fraud and prevent spikes
  • Reduce damage from friendly fraud Issue refunds to promote higher card issuer acceptance
  • Resolve disputes proactively and improve the customer experience