Challenges

  • 01. Cost & Conversion Challenges

    High transaction decline rates (15%) and excessive Worldpay fees, including £150 monthly minimums and termination penalties, were reducing profitability and causing customer dissatisfaction.

  • 2. Fraud Risk Management Issues

    Reliance on manual fraud screening led to a 2.8% chargeback rate, jeopardizing merchant account stability and driving up operational costs

  • 3. Inefficient Settlement Processes

    Prolonged T+7 settlement cycles strained cash flow during peak sales periods, restricting inventory purchases and limiting business flexibility.

  • 4. Limited Market Payment Options

    The lack of support for local payment methods hindered European market growth, leading to cart abandonment and missed revenue opportunities.

Solution

We implemented a comprehensive payment optimization strategy for LushWigs:

Primary Processing: Integrated Stripe as the main payment processor, providing advanced payment routing and rapid T+3 settlement cycles. This move immediately improved authorization rates through Stripe’s adaptive acceptance technology.

Fraud Prevention: Deployed a multi-layered fraud protection system combining Stripe Radar’s machine learning capabilities with Visa’s RDR and Ethoca alerts. This integrated approach enabled proactive fraud prevention and rapid dispute resolution.

Treasury Management: Implemented Airwallex for efficient fund management and international payments. Their corporate card solution streamlined business expenses, while their banking infrastructure provided more flexible settlement options.

 

Redundancy Planning: Established a backup payment processor relationship, ensuring business continuity and providing negotiating leverage for better terms.

Results

The impact of these changes was transformative:

  • Authorization rates improved by 35%, directly increasing revenue
  • Fraud-related chargebacks reduced by 29%
  • Settlement time decreased from T+7 to T+3
  • Processing fees reduced by 40% through optimized routing
  • Dispute rates dropped to under 0.5%
  • Added 8+ local payment methods for EU market

LushWigs - Branding

LushWigs is a leading UK-based e-commerce retailer specializing in premium wigs and hair extensions. With £100K-150K annual revenue, they serve customers across the UK and EU markets, offering high-quality, customizable hair solutions.

Type

Mid-sized company

Partners

Stripe • Airwallex • Visa RDR • Ethoca

Industries
Market

E-commerce & Jewelry

UK & EU

 

Authorization rates
0%
Fraud Reduction
0%
Local Payments
0%
Market Expansion:Expanded into 15+ new countries
0%
Improved payment approval rates
0%
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