The first step was to understand the issues that were causing ProxyRack’s unusually high chargeback levels.
With no insight from the existing provider, Paddle immediately onboarded as ProxyRack’s SaaS Commerce Partner so that it could process all transactions and access first-hand data.
This revealed that the problem was occurring in two forms: friendly fraud and chargeback fraud. Equipped with this insight, Paddle’s account manager conducted a site review and trustworthiness check, leading to recommendations around the refund policy, use of review sites and customer cancellation flows.
The next step was for Paddle’s in-house fraud team to implement custom fraud rules, bespoke to the trends detected within ProxyRack’s transaction flow. This involved customization of Paddle’s anti-fraud algorithm, which uses machine learning to assign a fraud score to every transaction processed by Paddle, based on comparisons of geo, email and payment trends across relevant verticals, as well as analysis of buyer behaviour and payment fingerprinting.
High-scoring transactions were then either immediately rejected at the checkout or frozen and referred for manual review, with a decision typically made within 1-2 hours.
These rules were reviewed and revised on a rolling basis, as more data and insight were gathered. Paddle’s fraud team also worked with ProxyRack to capture relevant customer information that could dispute chargeback claims, such as login and product usage activity.
As the Commerce Partner, Paddle is able to manage administrative functions such as tax liability, currency conversion and billing support queries. While also providing SaaS-specific APIs allowing for them to monetize more appropriately. For companies like ProxyRack, this means less time spent on day-to-day management and more on product development and business building.