Fraud liability absorbed by a service provider isn't "zero fraud." It is: "you don't get charged directly for chargebacks and other financial penalties, but your brand is still at risk, plus you have no control over false positives."
Bolt: An End-To-End Payments Stack with Zero Fraud
81–90 of 154 posts
Re: Bolt: An End-To-End Payments Stack with Zero Fraud
#82Earlier quoted context omitted.
Bolt.com has a huge history, including video-sharing that may have gotten it on those types of lists several years back. We've had it for close to 3 years though.
Thanks. I'm willing to bet my school's IT dept hasn't updated any of their network software in like 5 years, so that's not surprising. It's specifically tagged as phishing. Side-note: The link on HN goes to plain HTTP, hopefully you have HTTPS all set up!
Makes sense.
And yea thanks, the site auto-redirects to HTTPS.
Re: Bolt: An End-To-End Payments Stack with Zero Fraud
#83Earlier quoted context omitted.
Right now, we don't cover friendly fraud. The reason is that it's largely out of our control. We can't control how well merchants communicate with clients, how fast/reliably they ship, etc. So if we covered it, it lowers the cost of treating customers poorly. There will always be a bad actor here or there, but that's typically less than 1% of chargebacks (at least from our data).
Wow, you're saying 99%+ of chargebacks are claiming not authorized? Would not have expected that.
Not exactly. Friendly fraud is when a customer is a clear bad actor and, even though they receive the goods/services, they claim they didn't.
Merchant-fault is typically behind many of the non-friendly-fraud and non-stolen-card-fraud chargebacks. This includes late shipments, not adhering to return policies, damaged goods, etc.
Re: Bolt: An End-To-End Payments Stack with Zero Fraud
#84So it's not really zero fraud, Bolt just covers the cost of fraud.
That's effectively the same thing as zero fraud for anything that matters, if you never have to pay for it, no? I mean, I guess if someone fraudulently signed up for a subscription, you'd lose the future expected monthly subscription fees or whatever. But it's pretty much good enough. When I saw "zero fraud" advertised, my immediate assumption was that they paid for any fraud, and they were confident they had fraud l…
Spot on.
Re: Bolt: An End-To-End Payments Stack with Zero Fraud
#85Earlier quoted context omitted.
It's pretty insane. Empirically, you'd rather let several fraudsters through in order to not trap a good customer (because of their customer lifetime value, brand value, etc). However, the industry does the opposite. They'll reject 3 good customers to catch 1 fraudster. It's really bad. Every switch to Bolt has seen a 1%-20% lift in order approval rates (while guaranteeing zero fraud) because of our unique data engin…
So you're saying despite having better fraud detection, your false positive rates (orders that would have been non-fraudulent but rejected anyway) are _also_ lower than the competition? This is definitely something you might want to put in your marketting, but also back up in some way. As a general rule, I'm going to assume any reduction in false negatives has some increase in false positives. If the general rule is…
Here are some case studies to prove it: https://bolt.com/case-studies
Many of our clients switched from top-tier fraud detection providers and saw significant lift in order approvals with Bolt.
More case studies on the way.
Re: Bolt: An End-To-End Payments Stack with Zero Fraud
#86Earlier quoted context omitted.
On the pricing page: "Without proof of a lower rate, default processing is 2.9% + $0.30 for VISA/Mastercard/ Discover, 3.5% + $0.30 for AMEX, and $20 for any chargeback dispute not covered."
Holy shit, those are titanic interchange fees.
Those aren't interchange fees. Those are payment processing fees...Bolt is paying the interchange.
Re: Bolt: An End-To-End Payments Stack with Zero Fraud
#87Fraud liability absorbed by a service provider isn't "zero fraud." It is: "you don't get charged directly for chargebacks and other financial penalties, but your brand is still at risk, plus you have no control over false positives."
True. But it's zero fraud from your perspective as a business.
You also have full control over false positives: - First, we put txn's through several layers to ensure the highest rates of order approvals. If our algorithm is about to reject, it goes through a human review process to ensure we're approving as much as possible. - If we reject, you have a force approve time window to approve transactions if you disagree with our decision. You have final decision-making. None of our merchants use this because they end up trusting us so much :-)
Our customers (some case studies here: https://bolt.com/case-studies) have switched from top-tier providers and seen substantial order approval lift.
Furthermore, we're also your payment processor. Typically fraud providers and payment processors are separate, so if fraud providers make a mistake, payment processors will slap the merchant on the wrist with what can ultimately be serious fines + more reserve requirements. We don't, because we're also your processor.
Re: Bolt: An End-To-End Payments Stack with Zero Fraud
#88I have intermittent issues scrolling the fullstack job post (https://bolt.com/jobs/fullstack-engineer) in Chrome for iOS. Requesting the desktop site seemed to fix it. I was also able to get it working by randomly clicking the other postings and coming back. If I wasn't eating lunch I'd try to debug it better but it's easily possible this is only affecting my phone.
Re: Bolt: An End-To-End Payments Stack with Zero Fraud
#89Earlier quoted context omitted.
Sure. Our fee ranges anywhere from a fraction of a percent to a couple percentage points. Companies selling $100k diamond jewelry (of which we have several) vs companies selling $100 bikes have different levels of risk. Most importantly, we typically charge 1/10 the revenue we generate for our clients: https://bolt.com/case-studies . Everyone who's signed up is 10X ROI positive. For a small single digit percent they'…
Does that mean you charge 0.10 * (new_revenue - revenue_before_bolt) in addition to the fees? For a company that keeps growing, that would asymptotically approach 10%.
We cap it at low absolute single digit percentages. Business capture way more upside than we do.
Re: Bolt: An End-To-End Payments Stack with Zero Fraud
#90I have intermittent issues scrolling the fullstack job post ( https://bolt.com/jobs/fullstack-engineer ) in Chrome for iOS. Requesting the desktop site seemed to fix it. I was also able to get it working by randomly clicking the other postings and coming back. If I wasn't eating lunch I'd try to debug it better but it's easily possible this is only affecting my phone.
Looking into this thanks.