Nutrisystem reduces fraud and keeps customers happy
Nutrisystem improves their customer experience by reducing friction
Rules-based solutions make it hard to distinguish genuine customers from fraudsters
Initially, relying on a rules-based fraud prevention system meant Nutrisystem’s finance team faced a challenge – the inability to identify genuine customers from fraudsters. This not only resulted in an incredibly high (and growing) chargeback rate but also meant the risk of potential penalties from Visa and Mastercard.
An automated approach that scales to meet future growth
Nutrisystem partnered with Forter to implement a 100% automated approach and real-time decisioning — identifying fraud before and after payment authorization. This significantly reduced the chargeback rate, meaning the finance team no longer has to spend time addressing chargebacks or worrying about being placed in Visa or Mastercard monitoring. The fast and frictionless experience leads more legitimate customers through the subscription experience, while blocking fraudsters from both the website and the NuMi app.
Mitigated risk while positively impacting the bottom line
- Approval rate increased from 97.0% to 99.95%
- Declines reduced by 98.3%
- Monthly chargebacks decreased by more than 90%
- $300k+ in pending penalties from Visa & Mastercard avoided
- Their new approach resulted in an 400% ROI
- Eliminated manual reviews; giving teams more time to focus on customer relationships and boosting brand loyalty
