Manual fraud reviews at Raise dropped 98%, from as many as 18% of orders to 0.25%. Those reviews had taken more than 10,000 hours a year and left customers waiting on approvals.
Raise’s chargeback rate fell 45%, from 0.53% to 0.29%, over three years with Sardine. Gift cards draw fraud because they are digital, easy to resell and spent before a dispute lands.
Sardine adjusted Raise’s existing fraud rules and built custom models for gift card scams, so suspicious orders get flagged without pulling good ones into review.
Gift card exchange Raise cut its chargeback rate by 45%, from 0.53% to 0.29%, and reduced the share of orders needing manual review from as much as 18% to 0.25%, fraud platform Sardine said in a customer case study.
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Gift card marketplaces carry two costs that pull against each other. Fraudulent orders produce losses and fees. Controls that hold up legitimate orders produce delays and human reviews. Raise, which the case study says has processed more than $10 billion for about 6 million users across 1,000 brands, was paying both.
Gift cards are particularly vulnerable to fraud because they can be purchased digitally, transferred and redeemed before a disputed payment is identified. Fraudsters can use stolen payment credentials to purchase gift cards and convert them into goods or resale proceeds. Doriel Abrahams, head of risk at Forter, told PYMNTS in 2023 that a gift card is the online world’s version of cash.
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