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24/08/2026 2:01 pm
TL;DR: Authorization rates for a Japanese fashion platform and ST improved by 15% while fraud fell to near zero and manual review was eliminated, showing how selective authentication and risk-based decisions can reduce checkout friction without weakening payment controls, according to Riskified. For identity and fraud teams, the lesson is that authorization, identity intelligence, and transaction risk governance now need to be treated as one operating model.
NHIMG editorial — based on content published by Riskified: Japanese fashion platform and ST improves authorization rates by 15% and reduces fraud with Riskified
By the numbers:
- and ST achieved a 15% increase in authorization rates after working with Riskified.
- and ST reduced fraud chargebacks to approximately 0.0005%, effectively near zero.
- and ST eliminated manual fraud review, saving approximately 10 hours per week.
Questions worth separating out
Q: How should ecommerce teams balance fraud prevention with approval rates?
A: Treat fraud prevention as a decision-quality problem, not a blocking problem.
Q: How should ecommerce teams balance strong authentication with customer conversion?
A: Use risk-based authentication rather than blanket friction.
Q: What breaks when fraud review is disconnected from identity signals?
A: Teams lose the ability to distinguish routine customer behaviour from suspicious activity early enough to act cleanly.
Practitioner guidance
- Align identity and payment risk policies Map account creation, login, and checkout controls into one decision framework so fraud teams and identity teams use the same risk thresholds and escalation paths.
- Reduce blanket authentication at checkout Use transaction risk scoring to reserve step-up authentication for higher-risk events instead of applying the same 3-D Secure challenge to all purchases.
- Track false decline and review burden together Measure approval rates, chargebacks, and manual review hours as a single control outcome so security gains are not purchased with avoidable friction.
What's in the full analysis
Riskified's full post covers the operational detail this post intentionally leaves for the source:
- The EMV 3-D Secure Pattern 1 operating model used to reduce friction for low-risk transactions.
- The merchant approval process context, including conversion and GMV impact modelling for the acquiring bank.
- The 24/7 monitoring arrangement and how it supported ongoing fraud decisioning.
- The account creation and login protections that extended the control model beyond checkout.
👉 Read Riskified's analysis of how and ST improved authorisation rates and reduced fraud →
Ecommerce fraud controls and authorization rates: what teams need now?
Explore further
24/08/2026 2:01 pm
Checkout fraud is now an identity governance problem, not just a fraud problem. When merchants apply authentication without transaction context, they often convert security into customer friction and manual overhead. The better model is lifecycle governance across account creation, login, and payment, because that is where trust is actually established and exploited. For practitioners, the question is how to make identity signals usable at the point of authorisation.
A question worth separating out:
Q: Who is accountable when fraud controls reduce approval rates but do not reduce losses?
A: Accountability should sit with the team that owns the full decision chain, not just the final checkout control. In practice, that means fraud, payments, and identity governance teams need shared metrics, clear exception ownership, and documented policy approval. If those controls are split, merchants often optimise one metric while damaging another.
👉 Read our full editorial: Fraud controls and authorization rates in ecommerce payments
