March 14, 2013, 2:19 PM

LuggagePros.com checks fraud at the gate

The luggage and travel accessories retailer reduced chargebacks 65%.

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Sales for LuggagePros.com, which sells luggage and travel accessories, took off about three or four years ago, but so did its fraud rate.

That forced the e-retailer to invest more money and time conducting manual reviews. However, that approach grew cumbersome, and the e-retailer in 2012 decided to find some outside help.

It enlisted Kount Inc.’s fraud detection services and implemented the system in less than a week, says Andy Gass, vice president of operations for LuggagePros.com. He says LuggagePros.com’s was almost immediately able to reallocate the time staff spent on manual reviews to other areas because the service automatically sorted good transactions from suspicious ones. That meant LuggagePros.com could approve more good orders right away.

Over time, LuggagePros.com added rules to fine-tune how Kount screens all its transactions, and that’s helped move good orders through the e-retailer’s systems more expediently. Orders Kount flags as suspicious still get manually reviewed, but those “get completed much more quickly and confidently,” Gass says.

That’s also helped LuggagePros.com cut its chargeback rate by 65%, Gass says. Credit-card issuing banks issue chargebacks to retailers when a credit card is used fraudulently to make a purchase and the real owner of that card reports the problem.  “We’ve saved money by reducing merchandise losses and by spending less time reviewing orders,” Gass says. Kount declined to reveal pricing for its services.

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