Riskified leans on artificial intelligence to help merchants identify and combat e-commerce fraud.
In this Backstage Pass video, which was recorded on Oct.
It’s been a major growth driver in past years and it’s been a great thing for businesses and consumers alike.
And when that happens, if you go online or you see a charge show up on your credit card that you didn’t make, you call your bank and say, “Hey, I didn’t buy this.” The bank reverses the charge and that money gets pulled back out of the merchant’s account.
On top of that, there’s also the other side of that equation, where valid transactions are actually being declined.
Basically, it collects hundreds of data points per transaction, and then it correlates those data points with the over one billion transactions that have already been processed on its platform.
One of the things I really like about the company is that they guarantee a minimum acceptance rate for their clients, and that acceptance rate varies depending on the industry in which their clients operate.
To put that in context, looking at the top 10 merchants on its platform, they’ve seen revenue rise by 8% per year, and fraud-related operating expenses fall by 39% per year.
So to put that in context, there is trillions of dollars being spent on e-commerce every year.
One other thing I really like is that through the first six months of 2021, they had a positive $5.3 million in cash from operations.