How Master da Web Reduces Chargebacks & Manual Reviews
Master da Web
The cloud computing industry has been one of the fastest-growing industries as many companies are moving into digitalization nowadays, either partially or completely, by creating a new website, hosting their services, backing up their data and so on.
Master da Web is a Brazilian data center that provides cloud computing services, dedicated servers and web hosting solutions to more than 800 clients in Brazil. They provide applications in low latency and high availability infrastructure. In order to serve customers better, 24/7 Brazilian technical support is available.
"FraudLabs Pro is incredibly helpful in this fight against fraudsters as well as decreasing our costs with chargebacks and administrative time spent reviewing orders manually."
Lucas Carvalho, CEO of Master da Web
According to the annual report titled Online Criminal Activity in Brazil which was prepared by the company Axur, there is a total of 45% credit card fraud cases in Brazil in 2020. In the report, it is clearly seen that Brazil is one of the leading countries in the world ranking for online fraud. This fact has raised concerns about the fraud losses among online merchants in Brazil including Master da Web.
Master da Web has previously encountered similar fraud issues like other e-commerce merchants in Brazil. They also faced credit card fraud in which the fraudsters used the stolen or skimmed card for purchases. Months later, Master da Web received chargeback alerts when the card owners found out that their cards were used to make unauthorized transactions. Not only did Master da Web incur losses due to the reversal of the unauthorized amount back to the rightful owners, but they were also slammed with the penalty fees from the payment gateway. Master da Web could minimize this incident by putting more resources and time to painstakingly review every transaction for possible fraud. However, this may not be an efficient approach and the fraud detection may not be accurate as well.
Master da Web turned to FraudLabs Pro for the fraud prevention solution. After the setup, FraudLabs Pro started performing a comprehensive screening on all elements of a transaction to find the fraud patterns. Right after the validation, FraudLabs Pro will produce an insightful fraud report so that Master da Web can quickly make a decision to approve or reject the transaction.
FraudLabs Pro has helped Master da Web to greatly reduce the number of suspicious transactions for review. This has saved them a lot of time since they no longer have to review every single transaction. In addition, Master da Web has also noticed the reduction of the fraud losses, handling costs and chargebacks, as the suspicious transaction can be detected at the early stage. Approximately 10% of the total transactions in 2021 had been successfully detected and rejected before they turned into chargebacks.