La Bécanerie cleverly fights fraud

La Bécanerie, the spare parts and equipment specialist for two-wheeled vehicles, minimized risk and maximized revenue by choosing HiPay Sentinel.
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The story of La Bécanerie starts with French entrepreneur Djamal Henni, who opened a store specializing in motorbike and moped parts in 1978. This business took off, and the brand started distance selling under the name La Bécanerie in 1986. Its offering gradually diversified, and today it sells spare parts for all two-wheeled vehicles, plus a vast range of bikers’ equipment.

“La Bécanerie is a family business offering quality products. Based in France, La Bécanerie also supports local jobs,” says Nicolas Henni, Web Director and the founder’s brother.

Challenges

Grow the online presence

In 2014, La Bécanerie got in touch with HiPay. Thanks to healthy online growth, its transaction volume had increased, but this resulted in higher fraud levels. So the retailer enlisted HiPay to reduce fraud by integrating its purpose-built technology.

Manual reviews : a waste of time

It had become crucial for La Bécanerie to be able to review suspicious transactions in more detail. While the website’s team accepted over 98% of transactions, it refused 1.88% and did not have enough time to analyze the remaining 0.12%. To manually handle these anomalies, a dedicated team would be needed, and La Bécanerie wished to keep staff costs to a minimum.

Solutions

Advanced anti-fraud technology

La Bécanerie had already selected HiPay as their online Payment Services Provider (PSP) in 2014. With the help of HiPay’s Risk teams, La Bécanerie added and configured the HiPay Sentinel anti-fraud module in 2017. With this technology, each transaction gets a score based on specific risk factors, and this score triggers an action: acceptance, rejection, 3D-Secure authentication or manual review.

Automating challenged transaction processing with AI

To assist them in reviewing suspicious transactions, HiPay integrated the Smart Decision module. Powered by Machine Learning, HiPay Smart Decision automatically reviews transactions with a score under a certain threshold. It does this by assessing the profile of the buyer combined with analyzing the merchant’s historical transactions to statistically evaluate the level of risk posed by a suspicious transaction. Then, it makes the best decision in real time.

Benefits

Fewer chargebacks, with no manual processing

In the case of La Bécanerie, the module accepted 93% of challenged transactions and requested 3D-Secure authentication for the remaining 7%. Subsequently, the 3D-S authentication blocked 1.1% of transactions. Overall, the tool reduced the number of chargebacks on these transactions more than threefold, clearly demonstrating the added value of Machine Learning in the fight against fraud.

Improving the customer relationship

Letting Smart Decision deal with challenged transactions allowed La Bécanerie to free up its team in order to improve its customer relationship and its internal processes. “Our team now has more time to help resolve our customers’ payment issues. We are more available to answer their questions and more responsive with refunds. This new organization also gave us the opportunity to improve our internal accounting processes for better management.” concludes the website’s Director.

“The 7% of online transactions flagged as suspicious represented 5.79% of our revenue. Our team was doing its best to review them all quickly but the waiting time for our customers was 17 hours on average. We had to improve this process. Today, thanks to Smart Decision and artificial intelligence, all this happens automatically and in real time.”

states Nicolas Henni.