Re:Bolt: An End-To-End Payments Stack with Zero Fraud
by rbres on Tuesday January 23, 2018 @01:14PM
(#16215781)
We recently rolled all clients to the full offering. A couple legacy clients don't have the 100% fraud coverage, thus keeping it in the terms. But if you sign up with Bolt from this point forward, it bakes in the 100% fraud indemnification. Will probably even take that out of the terms soon.
Re:Bolt: An End-To-End Payments Stack with Zero Fraud
by tyfon on Tuesday January 23, 2018 @01:32PM
(#16216000)
So what percent of the transaction number is flagged as fraud, and how many is actual fraud?
Losing a customer that is not fraudulent due to aggressive filtering is almost as bad as having a fraudulent one.
Re:Bolt: An End-To-End Payments Stack with Zero Fraud
by rbres on Tuesday January 23, 2018 @02:29PM
(#16216700)
Good question. Addressed that here: https://news.ycombinator.com/item?id=16216455
Our top focus is order approval lift. Zero fraud is cool and all (and makes for a good posting title) but is really just an assurance that you should be comfortable as we start to approve way more orders.
Re:Bolt: An End-To-End Payments Stack with Zero Fraud
by xenity7 on Tuesday January 23, 2018 @01:26PM
(#16215943)
How do you determine if a chargeback is “fraud related”?
Re:Bolt: An End-To-End Payments Stack with Zero Fraud
by rbres on Tuesday January 23, 2018 @01:30PM
(#16215982)
Chargebacks have detailed reason codes which we programmatically sort. We also have a fraud analyst team that sorts through the non-fraud chargebacks to verify that they're not fraud related (some are mis-categorized by banks) before passing it off to the merchant.
Re:Bolt: An End-To-End Payments Stack with Zero Fraud
by ikeboy on Tuesday January 23, 2018 @01:45PM
(#16216146)
So someone falsely claiming order not received is not covered. You don't cover friendly fraud.
Re:Bolt: An End-To-End Payments Stack with Zero Fraud
by rbres on Tuesday January 23, 2018 @02:28PM
(#16216682)
Right now, we don't cover friendly fraud. The reason is that it's largely out of our control. We can't control how well merchants communicate with clients, how fast/reliably they ship, etc. So if we covered it, it lowers the cost of treating customers poorly. There will always be a bad actor here or there, but that's typically less than 1% of chargebacks (at least from our data).
Re:Bolt: An End-To-End Payments Stack with Zero Fraud
by ikeboy on Tuesday January 23, 2018 @02:33PM
(#16216750)
Wow, you're saying 99%+ of chargebacks are claiming not authorized? Would not have expected that.
Re:Bolt: An End-To-End Payments Stack with Zero Fraud
by rbres on Tuesday January 23, 2018 @02:50PM
(#16216936)
Not exactly. Friendly fraud is when a customer is a clear bad actor and, even though they receive the goods/services, they claim they didn't.
Merchant-fault is typically behind many of the non-friendly-fraud and non-stolen-card-fraud chargebacks. This includes late shipments, not adhering to return policies, damaged goods, etc.
"If you have Bolt's fraud indemnification, Bolt will fully cover the costs of and manage fraud-related chargebacks. But, you will still be responsible for Merchant-related chargebacks (damaged goods, goods not received, unhappy customers, etc.)"
"If you do not have Bolt's fraud indemnification, we will contact you via Email to inform you of the chargeback. Your merchant account will be charged that full order amount plus a $20 processing fee. Then, we will request the appropriate information to help you fight the chargeback with the card network. If you win the dispute, you will receive the full order amount credited back."
https://docs.bolt.com/docs/risk-fraud-and-order-review