Challenge

LG Electronics develops innovative products and services under its brand slogan, “Life’s Good,” striving to enhance comfort and prosperity in everyday life. As part of its digital expansion strategy, LG Electronics Japan launched its official online store in August 2023, choosing Stripe as its payment provider based on the platform’s strong track record within the LG Group.

“We thought we had everything in place and went ahead with the launch, but within a few months, unauthorized transactions happened,” said Yayoi Ichikawa, leader of LG Electronics Japan’s e-business team. “Only then did we realize that payment processing was more complex than we initially expected.”

PC products are often prime targets for fraud due to their high value and compact size. Initially, the company had anticipated a rise in sales from October through the holiday shopping season. However, dealing with fraud prevention took priority—leaving little room for sales promotions. After careful consideration, the team turned to Stripe for guidance and opted for its professional services team, initially as a short-term solution.

Solution

Through Stripe’s professional services team, dedicated specialists monitored the Dashboard and fine-tuned key settings for LG Electronics Japan’s online store. This included configuring Stripe Radar for Fraud Teams as an anti-fraud measure, and setting precise rules for 3D Secure authentication when needed.

“We were advised to adjust transaction parameters according to the risk scores displayed on the Dashboard,” said Hyosun Myung, assistant manager of the e-business team’s OBS operation at LG Electronics Japan. “The team analyzed our data, explained the reasoning behind the recommended rules, and guided us through the implementation. Their advice was consistently accurate, and the paid support system was invaluable in helping us take action as we delved deeper into the data.”

“Fraud tactics evolve daily,” Ichikawa added. “Just when you think you’ve implemented effective countermeasures, new methods emerge. As a result, fraud prevention requires constant updates. Stripe’s guidance, including when to adjust settings, has been incredibly helpful.”

Results

During the period when Stripe’s paid support was in place, chargeback rates dropped to zero, and the payment success rate improved to nearly 90%. When API integration issues arose, Stripe’s logs were used to identify the root cause and provide solutions. The support extended beyond fraud prevention, offering insights into features that could help boost sales.

“We initially considered setting up the rules ourselves, but while we could access the data, we struggled to establish the right parameters,” said Myung. “It became clear that the expertise of Stripe’s dedicated team was essential for configuring the settings correctly.”

The Stripe Dashboard also grants customer support teams limited viewing access, enabling them to respond directly to inquiries. With the payments platform now stabilized, LG Electronics Japan was able to ramp up promotions for the 2024 year-end sales season, resulting in increased sales. Given these positive outcomes, the company has decided to extend its use of Stripe’s paid support beyond the originally planned period—further driving revenue growth.

※ Affiliation, position, and content are as of the time of the interview.