Without a comparison, it’s hard to tell what a particular fraud rate means. Is a 0.02% dispute rate good or bad? The answer depends on your business model, your region, and many other factors. Radar provides eligible merchants with a comparison to similar businesses on key fraud metrics to help inform actions you can take to improve the performance of Radar.
Radar has a tool specifically for this—anonymized, aggregated benchmarks for businesses in your region, and businesses that are similar to your own.
You can view benchmarks for:
- Block rate—The percentage of transactions that are blocked by your Radar Rules, high risk scores, or otherwise blocked by Stripe.
- Fraudulent dispute rate—The percentage of transactions that customers dispute as fraud.
- Estimated false positive rate—The estimated percentage of non-fraudulent transactions that your Radar settings block. (A high value means that you may be blocking too many valid transactions.)
You’ll see these benchmarks embedded in the charts and tables throughout Radar’s analytics page—hover your mouse over these icons to view their details.
Benchmarks and Privacy
We’ve taken steps to ensure that other merchants can’t identify your benchmarks:
- We aggregate regional benchmarks across many businesses in your region—so it’s not possible to discern an individual competitor in such a large pool of businesses.
- Benchmarks for similar businesses only display if you have many dozens of businesses in your cohort. (If you don’t see any similar-business benchmarks, this is the reason. You’ll still see regional benchmarks, though, since those are large cohorts.)
- For a given benchmark rate, the value for each business gets one “vote," so even if a single company dominates your industry, that company is only a small weight in the benchmark.
- We only include businesses with a significant number of transactions, since some of these fraud events are generally rare.
If you want to opt-out of benchmarking, contact us. If you opt out, your business won’t be included in benchmark calculations, though you’ll continue to see benchmarks in Radar’s analytics page.