Case Study: How Paula's Choice Achieved 6x ROI and Boosted Brand Reputation
Key results
The challenge
Paula's Choice, a direct-to-consumer skincare brand, experienced fraud patterns that drove an influx of chargebacks, along with a reselling problem where fraudsters ordered products in bulk at a discount to resell abroad. After switching from Sift to a payment processor's free rules-based product, the company received hundreds of chargebacks within the first 11 days—about 6x its normal volume.
The solution
Recognizing that the rules-based system was significantly less effective than Sift's machine-learning models, Paula's Choice reversed course and re-implemented Sift Payment Protection rather than dedicate a team to constantly tuning rules.
“Fraudulent activity is, unfortunately, nearly impossible to prevent when doing business online.”
JHJoshua HammanDirector of Client Services, Paula's Choice
The results, in context
After switching back to Sift, chargeback levels fell to 0.2%, and Sift's 2.2% block rate versus the rules-based product's 3.1% indicated more accurate fraud identification. Paula's Choice saved $100,000 in fraud orders from being placed within the first three days of re-implementation and reports a 6x return on investment with Sift Payment Protection.