ToyWiz Case Study
16%
Increased approval rate
$55k
Yearly overhead eliminated
$0
Fraud liability
The Company
ToyWiz, a family owned retail business in Nanuet, NY, has been an industry leader in collectible cards, games and toys for over 20 years. With decades of expertise, ToyWiz has developed the knowledge to accurately predict popular trends in the market and stock a highly curated selection of quality and sought-after products. Their successful online store, ToyWiz.com, has become the go-to destination for shopping toys and games.
The Challenge
When ToyWiz originally launched their online store on the Yahoo Small Business platform, it was ill-prepared for the wave of fraud attacks it encountered and was quickly overwhelmed with chargebacks. The owners segmented the three different types of fraud from which they had to defend themselves:
- Adult collectors purchasing high-ticket items using stolen credit cards
- Fraudsters committing triangulation fraud by posing as legitimate sellers offering discounted toys on third party marketplaces, such as Amazon and eBay. After receiving payment from unsuspecting shoppers, they would attempt to fill orders by purchasing the goods from Toywiz using stolen credit cards.
- Children making purchases with their parent’s cards
To fight back, ToyWiz implemented tight security protocols based on their previous chargeback patterns. Some of their restrictive practices included:
- Orders over a certain dollar value were automatically held for review
- For orders over $1,000, the only acceptable payment method was wire transfer
- Any order with a different billing and shipping address was verified by phone
- Any customer placing more than three orders in 30 days had their orders held for review.
This labor intensive process reduced the fraud incidence rate so dramatically that representatives of PayPal flew to meet the owners of Toywiz to learn their best practices
However, a sobering analysis revealed that Toywiz was turning away 15% of potentially profitable sales due to the slightest suspicion of fraud. The collateral damage of their prevention methods was that a substantial chunk of potential income was effectively being discarded.
In an effort to strike a balance between risk and appropriate revenue, ToyWiz reviewed their security restrictions. “We know toys, that’s our business”, said Greg Hart, Director of eCommerce. “We are simply not in the business of fraud prevention.” In this vein, Greg decided to reach out to their processor, Fidelity Payments, for a recommendation on how to effectively prevent fraud without risking good business.
“When I used to walk into the office in the morning, I would see the customer service reps scrambling to review the orders quickly, with enough time to make the shipping deadlines. Now, when I come in, the office is peaceful, without any frantic activity. I know if NoFraud said the order is safe to ship, we can ship the goods without any fear of chargebacks.”
Greg Hart
Director of eCommerce, ToyWiz
The Solution
Fidelity Payments suggested that they associate with NoFraud, whom some of their other clients had employed successfully in their struggles with fraud.
As Toywiz had replatformed to BigCommerce, integrating was simply a matter of downloading the NoFraud app in the BigCommerce app marketplace. NoFraud’s automated solution immediately began to screen transactions for fraud. Although ToyWiz was still a high fraud target, NoFraud was easily able to distinguish between legitimate and fraudulent orders, dramatically mitigating ToyWiz’s fraud exposure — as well eliminating one and one half headcount associated with fraud review.
“When NoFraud approves transactions, we feel comfortable fulfilling orders we would have thrown away previously. This result is exactly what we were hoping for: to never need to worry about online fraud. NoFraud helped us trust our customers again and enabled us to focus more on what we do best—selling toys.”
Greg Hart
Director of eCommerce
16%
Increased approval rate
$55k
Yearly overhead eliminated
$0
Fraud liability
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Customer Testimonials
Praise From Some of Our
Successful Customers
“5 stars across the board! We switched to NoFraud a year ago and not only did my approval rate increase drastically but pricing was also a lot more competitive. The integration is seamless and literally worked out of the box with zero changes to our current workflow.”
“NoFraud has been absolutely amazing. Before NoFraud, we were suffering from a barrage of fraud attempts, which resulted in tens of thousands of dollars of chargebacks. Once you install this app, fraudsters will give up hope. I think it’s a no-brainer.”
“Implementing NoFraud has vastly improved our business operations, not only by significantly reducing chargebacks and false positives, but by turning our inefficient fraud prevention process into a simple pass/fail decision that saves us loads of time and stress.”
“This is some of the best money we have ever spent. Integrating the app was quick and smooth, the support is fantastic and far superior to the service offered by some of their competitors. Our fraudulent orders have dropped by almost 60% since integrating NoFraud as compared to Signifyd and all orders that are charged-back are quickly reimbursed.”
“I switched to NoFraud from another guaranteed fraud prevention provider. My approval rate improved, pricing was more competitive, NoFraud customer support is superb and the user interface is intuitive and informative. My only regret is that I did not make the change sooner.”
“Normally not one to write reviews but absolutely must applaud NoFraud. I switched over from a big name competitor that dropped the ball huge on support. I’ve had no such issues with NoFraud — their support agents has been super responsive. The sales folks answered my every detailed question — even digging into API documentation. Their onboarding team was top notch. I was up and running super quick! Very happy.”
“The NoFraud app is really easy to install and set up. NoFraud’s analysis has been much more effective than the standard default Shopify fraud analysis. It catches fraud missed by Shopify and passes orders that Shopify said were high risk. Best part is, you can contact NoFraud and speak with someone.”
“The team at NoFraud are amazing. They have been a strong partner against the fraudsters. Right before we signed up we were hit with several thousand dollars of Mule Fraud. The addition of this app has definitely saved us money. Worth every penny. I would totally recommend them.”
“We can’t say enough wonderful things about the team at NoFraud. They are extremely responsive, knowledgeable, and easy to work with. The peace of mind we get from knowing that they are handling the fraud check process is invaluable. NoFraud’s system consistently delivers accurate order ratings and recommendations.”
“NoFraud has been fantastic. We switched from Signifyd and haven’t looked back. Better rates, vastly simpler customer service, easier touch points for service/help, chargeback protection and filing on our behalf (this was huge — of the few chargebacks we’ve gotten, NoFraud takes care of them and we’re good to go!). Super fast verifications (if/when needed). Great staff. All in all, definitely recommend going with this app!”
“Excellent communication. Easy to use service. Available to resolve and questions or concerns that arise in a timely manner.”
“NoFraud’s ability to extend internationally is great since we have no experience or knowledge in international sales. Without NoFraud, we’d have to learn everything there is to know about fraud detection in another market.”
“When I did a chargeback audit over the last 5 years before NoFraud, I saw that had I been a NoFraud customer for 10 years, I could’ve bought a boat with all the savings.”
“We didn’t realize how much money we were leaving on the table until we used NoFraud.”
“Turning NoFraud on was like a magic switch. Poof! All of a sudden our fraud problems disappeared.”
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