The growth of e-commerce continues to march onward, with the COVID-19 pandemic providing a dramatic accelerant. Both pure e-commerce merchants and legacy brick-and-mortar merchants that are expanding into e-commerce face the same problem. Fraudsters are increasingly targeting the online and mobile channels. As fraud losses grow, merchants are forced to look for ways to protect themselves and lower the expense of online fraud and chargebacks, while at the same time endeavoring to minimize the number of false declines. However, fraud management is not a core competency of most merchants, particularly those that are small and midsize. Acquiring the requisite internal skills to manage fraud can be a cost-prohibitive and lengthy process. What are e-commerce merchants to do?
Enter a relatively new solution to this issue. Over the past decade, several companies, including startups and established solution providers, have brought to market a fully managed fraud solution for merchants. These providers are putting their money where their mouth is by including a monetary guarantee on fraud losses. If they fail to stop a fraudulent transaction and it results in a chargeback, the vendors will reimburse the merchant. This report takes an in-depth analysis of the providers in this space, what differentiates them, and how they compare relative to each other.