In the past I’ve been involved with e-commerce businesses and have felt, firsthand, the pain caused by chargebacks. For anyone not in the e-commerce space, the chargeback concept might sound foreign. Essentially what it means is that if a fraudulent credit card transaction is disputed by the true cardholder, the vendor that made the charge has the funds reversed. Which sucks if the physical or virtual goods have already been sent — the vendor is down the goods, and doesn’t have the payment.
So it was exciting to hear about what Signifyd is doing for this problem area. The company is all about risk assessment. What it does behind the scenes is to apply analytics to more accurately assess the risk around e-commerce transactions. What that means for the actual merchants is that Signifyd can offer a 100% financial guarantee against chargebacks.