Dermalogica reduces fraud rates by 50% with Stripe

For over 30 years, Dermalogica has been a leader in professional skincare products, building a dedicated following of aestheticians through a focus on product quality and effectiveness. As Dermalogica’s reputation among skincare professionals has grown, it has expanded to 80 countries worldwide and developed a loyal base of in-home users.

Products used

    Payments
    Radar
North America
Growth

Challenge

Skincare and cosmetic brands are often targets for fraudulent charges due to the high potential resale value of their products. But Dermalogica’s mixture of professional and consumer online sales means that a one-size-fits-all fraud solution would not work. Professional buyers have a high lifetime value and rely on their purchases to sustain their businesses, making a false positive for fraudulent charges particularly costly. Dermalogica needed to be confident in a low false positive rate for their professional customers while also protecting against fraudulent charges.

Managing fraud while optimising customer experience was a challenge until Dermalogica was able to use Radar to customise its fraud management.

Solution

With Radar for Fraud Teams, Dermalogica has been able to focus fraud prevention efforts where they matter most. Using whitelisting and rules, they can ensure professional customers have a seamless ordering experience while providing extra protection for the higher risk orders.

Results

In Dermalogica’s first six months of using Radar, it has seen fraud rates cut by half, to levels well below those of typical e-commerce companies.

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