Riskified Launches Adaptive Checkout to Optimize Ecommerce Conversion and Combat Fraud
New offering aims to intelligently adapt each checkout flow to reduce false declines and boost ecommerce conversion rates
Illustration: Netaliya Vaitkevich vis Pexels.com
Riskified, which deals with ecommerce fraud and risk intelligence, has announced the launch of Adaptive Checkout, a solution aimed at increasing conversion rates while reducing fraud for ecommerce merchants. This new offering builds on Riskified's Chargeback Guarantee product by integrating a conversion optimization engine that adapts the checkout process based on the risk level of each transaction.
Traditional fraud prevention systems use fixed rules, often leading to false declines, customer frustration, and lost sales. Riskified’s Adaptive Checkout shifts away from this model by tailoring the checkout flow to each transaction’s risk profile, including factors like shopping history and data from Riskified’s global merchant network. By utilizing AI, the solution applies additional security measures selectively to higher-risk orders, allowing merchants to approve more legitimate transactions while blocking fraudulent ones.
Eido Gal, CEO and co-founder of Riskified, explained that false declines can result in significant revenue loss for ecommerce merchants. To address this, Adaptive Checkout uses AI to assess risk in real-time and adapt the checkout experience, helping merchants balance fraud prevention with the need to approve legitimate transactions.
The system routes orders through customized flows based on their risk, using tools like credit card CVV or One Time Password (OTP) only when necessary. This minimizes disruptions for genuine customers while filtering out fraud. Additionally, Adaptive Checkout screens out clear fraud before it reaches the issuer’s authorization checks and sends enriched order data to issuers, making it easier for them to identify and approve legitimate transactions.
TickPick, an online marketplace for live event tickets, partnered with Riskified and implemented Adaptive Checkout. As a result, the company was able to approve up to $3 million in additional revenue that would have otherwise been declined due to fraud concerns.
