Fraud

Stop letting international fraud deter you from going global! Zonos™ has technology and service options that range from complementing your current fraud monitoring all the way to mitigating any risk you face from fraudulent chargebacks.

Decoding Fraud

One of the biggest mistakes online retailers make when addressing fraud is using broad strokes, e.g., blocking all Indonesian IP addresses from hitting your site or requiring customers to wire money to pay for their order, to eliminate the possibility of fraudsters placing orders on their web store. The major flaw with this approach is there are a lot of legitimate buyers that may not be able to complete orders and you are now taking a hit on conversion and top-line revenue. Zonos provides a suite of fraud tools that target, identify and block individual fraudsters opposed to broad stroke changes that may impact legitimate buyers. Think of it as fishing with a spear rather than a net.

International fraud can be much harder to identify than domestic fraud. International orders have a higher likelihood of nuances. This may include billing to a foreign address, shipping within the United States, higher order values, or higher quantities of a single item. Circumstances like these may sound alarming but in many cases, should not. International buyers typically order more to justify the higher shipping costs and frequently ship to freight forwarders within the US.

Below is a list of possible variables we look at to determine if we will accept an order and if additional screening is needed.

Zonos offers three different fraud services:

  1. Zonos Checkout Fraud Screening offers standard fraud screening at checkout for no additional cost.

  2. Zonos Fraud Decoder offers additional checkout screening capabilities, giving you the tools and insights to manage fraud on your own.

  3. Zonos Fraud Coverage leaves you with zero chargeback risk plus the Zonos Fraud Decoder insights.

Zonos Checkout Fraud Screening

Zonos continually strives to improve our fraud intelligence and your conversion. We are extremely diligent when blocking a buyer from placing an order, because we want you to get as many legitimate orders and few chargebacks as possible. Included with the Zonos Checkout is our standard fraud screening to approve legitimate orders and reject fraudulent attempts. However, if you have not chosen to use your Zonos Fraud Coverage option, you are responsible for chargebacks and for screening your international orders.

Zonos Fraud Decoder

The Zonos Fraud Decoder gives you full insights on high-risk orders and the tools you need to manage/approve orders for an additional 0.9% transactional fee. With the Fraud Decoder, you receive additional checkout screening, such as 3-D Secure™ and the ability to set a fraud risk level for your web store. Also, higher risk attempts will be placed on a fraud worklist in a “Validating” status.

Based on the fraud tolerances in place for your web store and the enabled payment gateways, Zonos may trigger additional verification within the checkout to authenticate a buyer; one example of this is 3-D Secure. 3-D Secure does not prompt on all orders that occur in the Zonos Checkout but is instead targeted to potential buyers we may block from completing an order without the additional 3-D Secure verification, approximately 8% of screened orders in the Zonos Checkout are prompted for 3-D Secure.

The Fraud Decoder presents you with a worklist of orders in a “Validating” status where you will have access to additional insights (see image below) and other tools to determine if an order should be approved. Typically, less than 15% of orders end up on fraud hold for review.


Zonos Fraud Insights


Zonos Fraud Coverage

With Zonos Fraud Coverage, you have zero fraud liability or risk. With Zonos Payments, you will never see the chargeback. If you are using a third-party payment gateway, simply indicate which order you received a fraudulent chargeback within the Zonos platform and provide the chargeback notice to the Support team to receive your reimbursement. Zonos Fraud Coverage is 2.9% per transaction and is only charged on completed, not canceled orders. Fraud coverage is optimal for companies looking to scale their operation. It reduces the amount of time spent on monitoring fraudulent orders and adds new orders your team or system may not have approved in the first place. Zonos will approve new orders placed on fraud hold for review within one business day, and typically less than 15% of orders end up on fraud hold for review.

Fraud Screening status definitions

As orders progress through the fraud approval process, there are a few different status labels within the Zonos backend. These statuses allow you and your team to update customers and progress orders through fulfillment.

Validating - Order is being reviewed or pending a response from the customer. Payment has been authorized, not yet captured.

Verified - Order has been reviewed and approved. Payment is captured, and the order is now cleared to ship.

Cancelled - Order has been canceled due to suspected fraud or the customer’s inability to provide the information requested by you or Zonos (whoever is doing the fraud screening). The payment authorization is voided and should disappear from the customer’s billing statement within 5-7 business days. The customer will receive a cancellation notification email.