Wine Chateau Case Study
2%
Approval rate increase
$20k
Annual overhead savings
$40k
In annual chargebacks eliminated
The Company
Wine Chateau is one of the longest-operating online wine retailers, offering a vast selection of over 17,000 premium domestic and imported wines from around the world. Though it began 40 years ago as a brick and mortar store, and continues to operate three retail wine stores in New Jersey, Wine Chateau’s largest source of revenue is its online store, winechateau.com, making credit card fraud prevention a critical aspect of their daily operations.
Despite their best efforts, Wine Chateau’s gateway filters and manual review process failed to provide the level of security that the company needed to fight fraud. In the year before implementing NoFraud, Wine Chateau incurred over $40,000 in chargebacks.
They knew there had to be a better way.
The Challenge
In 2016, Wine Chateau knew its current fraud prevention solution had room for improvement. Employing a combination of automated gateway filters and manual screenings, Wine Chateau’s fraud prevention system was inefficient and costly.
The basic gateway filters they enabled automatically declined 3 percent of their transactions, and their manual review process declined an additional 0.5 percent of orders, resulting in an overall order decline rate of 3.5 percent. Many legitimate orders were cancelled, resulting in upset customers and increased customer service inquiries. Making matters worse, their manual review process frequently delayed shipments, especially during busy seasons or when the company was short-staffed, and cost Wine Chateau $20,000 in annual overhead to maintain.
The Solution
When Wine Chateau replatformed their site to Shopify, they researched the various fraud prevention options available to them. Ultimately, they decided on NoFraud, specifically because of their thorough and highly effective review process. One of Wine Chateau’s biggest challenges was the declining of legitimate orders, and they were attracted to NoFraud’s process of validating high-risk orders without necessitating Wine Chateau to provide proof of the orders’ validity.
Integrating NoFraud took less than 10 minutes. After the client downloaded the app from the Shopify app store, NoFraud’s intelligent review system immediately got to work, accurately identifying actual fraudulent transactions.
“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.“
Sourabh Abrol
CEO, Wine Chateau
The Results
Since beginning to use NoFraud, Wine Chateau has seen major cost savings. What’s more, the manpower that was previously needed to conduct manual screenings has been redeployed to tasks that add revenue to the company. And, as for any remaining chargebacks that managed to pass through NoFraud’s system, NoFraud reimbursed them under their Chargeback Protection Guarantee.
2%
Approval rate increase
$20k
Annual overhead savings
$40k
In annual chargebacks eliminated
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