The Retail Equation Prevents Return Fraud Two Million Times
Verify-2® Helps Avert a Fraudulent Return Every Two Minutes
IRVINE, Calif. – The Retail Equation, the industry leader in retail transaction optimization solutions, today announced the company has stopped two million instances of return fraud and abuse. This milestone, which occurred within an eight-year period among all of its retail clients, equates to a fraudulent return being prevented every two minutes by The Retail Equation’s Verify-2 return authorization solution—even with the system approving 99 percent of all valid return transactions.
“Retailers using The Retail Equation’s Verify-2 average an 8 percent reduction in return rate, which equates to millions of dollars in savings,” said Mark Hammond, CEO of The Retail Equation. “They also are able to keep consumers happy by implementing more hassle-free return policies without increasing their risk.”
Verify-2 enables retailers to rely on objective, verifiable data to determine whether a return is valid, rather than relying on subjective observations and guesswork by sales clerks. This objectivity approves all legitimate returns and ensures that only those with highly suspect return-and-exchange behavior are affected.
The Retail Equation’s Verify-2 software system is designed to identify return fraud and abuse, a $14.3 billion to 18.4 billion per year problem in the United States. As customers return merchandise, Verify-2 compares dozens of transaction variables against a set of statistical models and rules that form that particular retailer’s return policy. It is designed to distinguish and deter the less than 1 percent of consumers whose behaviors mimic return fraud or abuse.
About The Retail Equation
The Retail Equation, headquartered in Irvine, Calif., optimizes retailers’ revenue and margin by shaping behavior in every customer transaction. The company’s solutions use predictive analytics to turn each individual shopper visit into a more profitable experience. This yields immediate financial payback, increasing store comps by as much as two percent, with significant return on investment. The Software-as-a-Service applications operate in more than 20,000 stores in North America, supporting a diverse retail base of specialty apparel, footwear, hard goods, department, big box, auto parts and more. For more information, visit www.theretailequation.com.
SOURCE: The Retail Equation