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Today: Signifyd (ecommerce platform security)
Signifyd provides a comprehensive commerce protection platform that protects merchants from fraud, consumer abuse and revenue loss caused by needless barriers complicating the buying experience. Signifyd’s big-data-and-machine-learning-powered solution provides consumers with friction-free buying experiences and ensures that good customers are not frustrated by checkout delays or by having their legitimate orders declined for fear of fraud.
Together these efforts optimize merchants’ revenue and ensure that sales are not leaking from their buying funnel at key stages during the buying journey.
Signifyd has four key products:
• Signifyd Guaranteed Fraud Protection
• Signifyd Chargeback Recovery
• Signifyd INR Protection
• Signifyd Seamless SCA
Company Description
Founded by two former PayPalers in 2011, Signifyd empowers fearless commerce by providing an end-to-end commerce protection platform. Powered by the Signifyd Commerce Network, its advanced machine learning engine is able to protect merchants from fraud, consumer abuse and revenue loss caused by barriers and friction in the buying experience. Signifyd counts among its customers a number of companies on the Fortune 1000 and Internet Retailer Top 500 lists. With headquarters in San Jose, Signifyd also has offices in Denver, New York, Belfast and London. The company is privately held.
Signifyd is a prime example of a company formed when a team of innovators and entrepreneurs realized how the cloud could provide the answer to one of the unfair challenges facing online retailers, large and small. When retail transactions take place in a store, banks and credit card issuers are liable for fraudulent credit card charges. But when sales take place online, it is the merchant who absorbs the costs of lost products, chargebacks and fees. The cloud provided the infrastructure needed to support a solution that relies on big data, machine learning and domain expertise to sift fraudulent orders from legitimate orders in milliseconds.
Signifyd’s founders added to that powerful model by promising to make merchants financially whole for any orders it approved for shipping that later turned out to be fraudulent. The guarantee was a game-changer, particularly for small and medium businesses that didn’t have the resources to absorb large fraud losses. In short, Signifyd created a market for guaranteed fraud protection.
The company has grown and evolved rapidly under the leadership of CEO Rajesh Ramanand—having grown to 250+ employees, all while staying true to its core values—a roll-up-your-sleeves mentality, customer compassion, tenacity, agility, curiosity and hunger and a design-to-scale approach. Signifyd has been named to the Silicon Valley Business Journal’s Best Places to Work in the Bay Area for four straight years.
In 2019, Signifyd made great strides to ensure its executive leadership team matches the rich diversity of its customer base. Specifically, the company recently hired three superstar female executives to join its leadership ranks, including a new head of marketing operations and strategy, a new head of customer marketing, and its first-ever head of sales operations. Signifyd has established a phenomenal support system for its female employees, from its Women of Signifyd resource group to its generous parental leave policy, flexible working arrangements and programs to make it easier for new mothers to return to their jobs from leave.
Markets: Retail and online merchants in a variety of markets, including:
- Fashion
- Footwear
- Jewelry & Watches
- Beauty & Cosmetics
- Consumer Electronics
- Automotive
- Outdoor/Sporting Goods
- Furniture/Home Decor
- Home Improvement/Appliances
- General Merchandise/Department Stores
- Pet Supplies
- Photography
International Operations: Belfast and London
Product and Services
Guaranteed Fraud Protection: Signifyd leverages big data, machine learning and expert manual review to provide a financial guarantee against fraud on approved orders. This effectively shifts the liability for fraud away from ecommerce merchants, allowing them to increase sales and open new markets while reducing risk.
Chargeback Recovery: The first end-to-end chargeback solution, addressing non-fraud chargebacks, such as those filed for claims that the item received did not live up to its description.
Retailers enjoy the ability to provide a friction-free buying experience without worrying about consumer abuse, process issues or revenue loss.
Item-Not-Received (INR) Protection: This extension of Signifyd’s Guaranteed Fraud Protection provides a 100 percent guaranteed protection against chargebacks claiming that an ordered item was never received by the consumer. This becomes an issue when a consumer seeks to take advantage of a retailer by claiming after receiving an order that the order never arrived.
Seamless SCA: Provides a holistic solution that meets the strong customer authentication requirements for European retailers under PSD2. Seamless SCA is able to authenticate customers without step-ups for all transactions, not just exemptions. The system has the added advantage of shifting all liability away from the merchant, onto the issuing bank in the case of 3D-Secure-authorised transactions, or onto Signifyd for any transaction that would require a step-up or be declined.
Key Features
Guaranteed Fraud Protection: Signifyd leverages big data, machine learning and domain expertise to provide a 100 percent financial guarantee against fraud on approved orders. This is how it works:
- Integrate Order Flow: Leverage ready-made plugins for common ecommerce platforms such as BigCommerce, Magento, Salesforce Commerce Cloud or Shopify. For custom storefronts integrate directly via API.
- Receive Decisions: Get instant decisions for 99.5+% of your orders via Signifyd plugins or API. Any fraud chargeback cost resulting from guaranteed orders will be reimbursed within 48 hours, including shipping and other fees.
- Automate the Back Office: Based on Signifyd’s financial guarantee there is no risk in fully automating the order fulfillment on your end, based on our decision. No need to delay the customer’s order.
Chargeback Recovery: Signifyd leverages big data, machine learning and domain expertise to provide a 100 percent financial guarantee against fraud on approved orders. This is how it works:
- Sending Order and Fulfillment Data: Use Signifyd plugins or connect via API to pass order and tracking data, which informs how to best address every chargeback case. Proof of fulfilment is critical to the representment evidence. Signifyd aggregates and enriches data for evidence packages to issuing banks.
- Connect Payment Gateways: Signifyd’s implementations team helps connect their service with all customer payment gateways to pull chargeback data.
- Review Processes and Documents: Signifyd provides expert feedback and recommendations based on industry best practices.
Signifyd INR Protection: Works in conjunction with Signifyd Chargeback Recovery to investigate and resolve chargebacks based on consumer claims that an item was never received. Signifyd provides a 100 percent financial guarantee on approved orders that are challenged as “item not received.” This is how it works:
- Big Data, Smart Machines: Signifyd leverages big data and machine learning to triage and differentiate between valid item-not-received disputes coming from legitimate buyers and those coming from abusive customers, ensuring that each customer is treated with the proper respect or caution.
- Domain Expertise: Signifyd chargeback experts work with merchants to reduce the number of chargebacks before they happen, helping merchants to refine return policies and other elements of their ecommerce operations that might cause customer confusion or frustration.
Signifyd Seamless SCA: Provides a holistic solution that meets the strong customer authentication requirements for European retailers under PSD2. Seamless SCA is able to authenticate customers without step-ups for all transactions, not just exemptions.
- Data Smart Decisions: Signifyd can rely on its deep experience in transaction authentication, having for years used the three pillars of SCA — something the buyer has, something the buyer knows, something the buyer is — to sift fraudulent from legitimate orders. Its Commerce Network of more than 10,000 merchants selling in more than 100 countries provides vast amounts of data to feed its artificial-intelligence-driven solution, which makes obsolete the need to add disruptive steps to the buying process, such as requiring a PIN to complete a transaction.
- 3D Secure Rails: Signifyd conducts dynamic fraud analysis of orders, as it has been offering along with a financial guarantee since 2014. It then passes the SCA decision down the 3D Secure rails to eliminate delays in approvals and maximize authorization rates.
Insight and Analysis
From a professional’s review on Gartner Peer Reviews: Overall comment: “Signifyd has given us confidence in our website’s sales. When we first started our website, we had many chargebacks and had stopped taking American Express, because they make chargebacks so easy. Using Signifyd we were able to take more sales without fear of getting a chargeback due to Signifyd reimbursing us for sales they approved. Even the sales they do not approve of, we feel confident in canceling or going through with due to the customer information given on their portal.”
What do you like most about the product or service? “How easy it is to get confidence in our online sales. Also when an order is not approved knowing why it wasn’t. With some of those sales, we review and take a chance on based on the information given from Signifyd.”
What do you dislike most about the product or service? “We have not been able to get the Signifyd Plugin to work with our version of NOP Commerce. I don’t think it is their fault though.”
List of current customers: Jet.com, Stance, Lacoste, Mead Johnson, Crown & Caliber, Build.com, Foreo, Jerome’s Furniture, Petflow
Delivery: Signifyd provides software as a service available as a plugin on all major ecommerce platforms or via API for custom storefronts.
Pricing: For more on pricing, contact us at https://www.signifyd.com/contact/
Other key players in this market: Accertify, CyberSource, Forter, Riskified, Sift
Contact information for potential customers: https://www.signifyd.com/contact/
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