From 20% Chargebacks to 1% in 90 Days
3DSGateway, a cutting-edge payment gateway, successfully slashed its chargeback rate from 20% to just 1% within 90 days by implementing advanced fraud prevention measures and 3D Secure 2.0 authentication. The platform integrated real-time transaction monitoring, machine learning-based risk scoring, and automated dispute resolution to identify and block fraudulent transactions before processing. By enforcing stricter merchant onboarding and educating clients on best practices, 3DSGateway reduced unauthorized transactions while improving approval rates. The addition of dynamic friction applying step-up authentication only for high-risk payments enhanced security without sacrificing user experience. As a result, merchants saw fewer disputes, higher revenue retention, and increased customer trust. This dramatic improvement not only saved businesses millions in lost revenue but also positioned 3DSGateway as a leader in secure payment processing. The case demonstrates how strategic technology adoption and proactive risk management can transform payment security in record time.
Frozen Accounts & Revenue Loss
An American CBD merchant with a specialization in high end hemp products fell prey to a payment processor shutdown and restart cycle of financial turbulence. Despite dealing legally under the 2018 Farm Bill amendments, they suffered debilitating reputation damage in the industry, portrayed through constant issues with payment. Their chargeback ratio had shot to 20%-almost three times the tolerable threshold for most processors mainly due to criminal activity and customer complaints arising from misunderstood communication about the product.
It will now reach a crisis: having suddenly frozen $85,000 in processed revenue without any explanation while invoking vague “policy violations,” the current payment gateway has issued this crippling hold. Oh yeah, and it just happened to be placed this week in the midst of their busy selling season, instantly cutting cash flow off from possible vendor payments. Conventional banking partners all adamantly refused to underwrite an account. Even the most reputable high risk payment processors, who would usually underwrite such accounts, would only accept suffocating 30% rolling reserves that would have stunted their growth. The current payment gateway suddenly froze $85,000 in processed revenue without explanation, citing vague “policy violations.”
Conclusion
This success story showcases how the right payment partner can transform operations for restricted industries. Where traditional processors see only risk, we deploy smart technology and financial innovation to create opportunities. The 1% chargeback rate achieved through our dynamic 3DS2 implementation and machine learning fraud filters doesn’t just meet compliance standards; it fundamentally changes the economics of high-risk processing. Fewer disputes mean higher profitability and sustainable banking relationships. Our offshore merchant account solution eliminates crippling reserve holds, ensuring 48-hour fund releases so businesses can reinvest faster. With instant underwriting approvals and no hidden fees, we unlock growth where others impose barriers. The $450,000/month processing volume isn’t just a number; it represents regained working capital for marketing, inventory, and expansion. This financial flexibility, combined with our AI-driven approval optimization, creates a virtuous cycle where every dollar processed generates more value turning payment processing from a bottleneck into a competitive advantage.