Case Study: Eliminate Your Store's Fraudulent Transactions

With the cost of credit card fraud reaching into billions of dollars annually, retailers are challenged to garner savvy anti-fraud solutions. Fraudulent transactions cause retailers to lose sold merchandise or the consumer's payment and can incur a chargeback penalty (the fee banks and credit card companies charge retailers for reversal of payments). Retailers also run the risk of losing their best customers if unfortunate counterfeit transactions are not rectified efficiently.Bob King, CEO of ClickBank, was faced with this very situation and was forced to revamp his online store's fraud detection software to alleviate shifty transactions.

Founded in 1999 in Boise, ID, ClickBank is an Internet retailer that allows individuals and small business owners to buy, sell, or promote digital products in its marketplace. The retailer operates strictly online, and so all products are delivered via download. ClickBank's product categories include software in the form of desktop applications, antispyware, registry cleaners, and e-books, just to name a few. "ClickBank offers an outlet for people to gain access to Internet commerce," explains King. "ClickBank differs from other online retailers in that we have a huge affiliate network for advertising." The affiliates' advertising program generates sales by driving customer traffic directly to the products.