+100% rise in online sales
Like so many sectors, growth in toys and gaming is being driven through online channels. Since 2016 we’ve been helping Smyths Toys, Europe’s largest toys and games retailer, grow their online sales by over 100%—while keeping fraud to less than 0.1% of turnover.
Since 2016 Smyths Toys has expanded significantly in terms of turnover, driven through their online channels. These channels are becoming increasingly complex—with pre-ordering, click and collect and digital downloads, as well as home delivery.
The challenge? Just as online sales are becoming more complex, so is online fraud. How could Smyths strike the balance of maximizing growth with a simple payment experience, without compromising security and making themselves vulnerable?
The added challenge was Smyths were looking to continue their expansion across Europe. Different regions have different fraud trends. They needed a fraud solution that would enable them to hit the ground running quickly, but also securely.
A key part of Smyths’ payment solution is Decision Manager, our risk management tool that is constantly being informed by over 141 billion1 transactions processed by Visa from around the world. It then uses machine learning to improve decision-making; so, as well as helping keeping fraud out, it helps more legitimate sales get through.
We integrated data from third party services into Decision Manager. This third-party "add-on" service analyzes email data, such as IP addresses and domains during the purchase process, to alert Smyths to potential fraud—helping to provide a valuable extra layer of real-time protection.
As Smyths expanded into Austria, Switzerland and Germany, their fraud protection expanded with them. With our experience across the world, we knew what fraud trends they would face and made sure their payment system included region-specific rules to protect them from day one.
+100% rise in online sales
Smyths’ online transactions increased +100% between 2015-19, and during the COVID-19 pandemic, online sales have accounted for more than 40% of total sales, all flowing through the Cybersource platform.
Lowering fraud since 2015
Throughout this huge rise in online sales, fraud management as a percent of turnover has remained less than 0.1%. In fact, between 2016 – 2020 fraud as a percentage of transactions has decreased.
Lower chargeback rates despite COVID-19
In 2020, chargeback levels in case terms were less than 2019, despite more than twice as many transactions being processed.
1 VisaNet global transaction volume based on 2020 fiscal year. Volume may not include domestically routed transactions.