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Signifyd secures $56 million for eCommerce fraud protection

Signifyd, the largest provider of Guaranteed Fraud Protection for eCommerce merchants, announced they raised an additional $56 million in Series C financing.

Bain Capital Ventures led the funding with American Express Ventures, Menlo Ventures, and other existing investors participating.

The company plans to expand its team of engineers and fraud experts to scale its machine learning-enabled Guaranteed Fraud Protection for merchants. This investment will allow Signifyd to expand its services across the U.S., Europe, and Asia.

As a result of growth in online retail, there has been an increase in fraudulent transactions. Criminals use more sneaky methods for online fraud, redirecting resources to combat this problem.

Because of higher fraud risks, some online retailers stopped expansion in international markets.

SIGNIFYD OFFERS PREDICTABLE FRAUD COSTS

The beauty of the Signifyd service is that the company provides fixed fraud costs with zero merchant liability.

Therefore, online retailers can focus on selling products and not worry about fraudulent transactions. Once Signifyd approves a transaction, the sale is 100% protected.

Signifyd currently has plugins for Shopify, BigCommerce, Magento, and DemandWare. It also offers a fully documented API for other platforms.

TECHNOLOGY AND RISK POOL KEY TO FRAUD PROTECTION

Some fraud protection services check a sale based on a cryptic scoring method. Even worse, they provide the “score” to the merchant for making a final decision.

This system is archaic, and the merchant still assumes the full risk of every transaction.

Signifyd uses a different approach by combining an “insurance” model with artificial intelligence for every transaction.

Because the company reviews every transaction, it takes full fiscal responsibility for each approved sale.

Merchants no longer have to worry about chargeback losses. Simple claims processing reimburses retailers within 48 hours, including shipping and chargeback fees.

Signifyd’s machine learning systems are critical to the approval process. Since speed is important to merchants, the company evaluates transactions in real time with AI.

If a transaction is declined, the merchant receives a full report from Signifyd on the decision.

5000 ACTIVE SIGNIFYD STORES – $9.1 BILLION SALES PROTECTED

Because Signifyd is a well financed and a fast growing fintech company, it has attracted high-profile enterprise clients.

The transaction volume provides the company a large data pool for its machine learning system. With this technology, merchants can grow their business with confidence in new markets.

Overall, the additional investment is good news for merchants looking to cut risk and focus on sales growth. Signifyd solves a problem and has the financing to grow its service.

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