Case Study: ProxyRack achieves chargeback drop from 3.2% to 0.34% with Paddle

How ProxyRack cut their chargeback rate by 90%

ProxyRack (Secure Privacy Group Ltd.), a business proxy network serving 3,000+ customers and hundreds of thousands of private proxies daily, was operating in a high‑risk, fraud‑heavy vertical and faced an unsustainably high chargeback rate (~3.2%) and little support from prior billing providers. To address this, ProxyRack engaged Paddle as its SaaS Commerce Partner to act as Merchant of Record and provide anti‑fraud services, including its Machine Learning Transaction Scoring.

Paddle’s in‑house fraud team implemented bespoke fraud rules, ML scoring to flag/reject or freeze suspicious transactions, manual reviews, and helped capture usage data to dispute chargebacks, while also handling billing and admin functions. As a result, Paddle helped reduce ProxyRack’s chargeback rate from 3.2% to 0.43% within three quarters and to 0.34% today—well below the 0.65% Visa/Mastercard threshold—while improving fraud detection and operational efficiency.

ProxyRack

Sam Cross

Founder