MIAMI--(BUSINESS WIRE)--Global risk technology solution provider, ClearSale (www.clear.sale), has released a comprehensive new report that sheds light on the prevalence and consequences of false positives, commonly known as false declines. The highly anticipated report, Ecommerce False Declines & Consumer Behavior, takes a deep dive into the economy of false declines, uncovering their detrimental effects on both the customer journey and a retailer's bottom line.
The Federal Trade Commission received nearly 5 million fraud reports from consumers in 2020 and 2021. While fraudsters are escalating attacks and devising more sophisticated strategies with the help of AI, consumers continue to increase their appetite for online shopping. The report, using original research from ClearSale, will equip retailers with crucial insights to navigate the delicate balance between customer satisfaction and fraud prevention.
Key findings from the report include:
- Consumers are sensitive to fraud: 83% of customers stated that they would not return to a retailer that failed to protect them from fraud.
- Widespread false declines are an issue: In 2022, 25% of respondents experienced false declines, with 36% encountering multiple instances.
- False declines = social media outcry: Across all age groups, consumers indicated a tendency to voice grievances on social media platforms, ranging from 22% of Baby Boomers to 41% of Gen Zers.
- False declines are impacting retailers' revenue: Alarmingly, 65% of false declines were later validated as legitimate transactions, resulting in significant revenue loss.
In addition to highlighting consumer perceptions and behaviors, ClearSale's report offers actionable strategies for fraud prevention and enhancing the customer experience in ecommerce.
When customers turn away from a retailer because of a false decline, that merchant loses the opportunity for a loyal customer as well as their lifetime value, which can be significant, said Rafael Lourenco, ClearSale EVP and Partner. One false decline could result in $25,000 or more in lost revenue from a single customer. That's why it's so critical to get this report into the hands of online retailers so they can make informed decisions about their customers' purchase experience.
The report, Ecommerce False Declines & Consumer Behavior, is available as a free download now on the ClearSale site.
About ClearSale
ClearSale (B3: CLSA3) offers the most complete ecommerce fraud protection, combining cutting-edge statistical technology with the world's largest team of specialized fraud analysts for a balanced, comprehensive, real-world approach. Trusted by over 6,000 customers worldwide and touting a 99% retention rate, ClearSale is the first company to offer chargeback guarantees and the largest company focused on global card-not-present fraud prevention. ClearSale helps businesses prevent fraudulent chargebacks without interfering with the online shopping experience. As a result, clients can sell more, safely, even in dynamic or challenging international markets. Visit Clear.Sale for more information, follow on LinkedIn, Facebook (NASDAQ:META), Instagram, YouTube and Twitter @ClearSaleUS, and subscribe to ClearSale's podcast Gateway to Ecommerce.
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Source: ClearSale