Case Study: Costway achieves 143% approval lift and 99.7% chargeback reduction with Riskified

How Costway Leveraged Automation to Power Global Expansion and Streamline Operations

Costway, a China-based furniture retailer that grew rapidly through marketplaces and branded sites, faced a surge in fraud that pushed its US store into Visa’s Excessive Chargeback Program: chargeback rates hit 14–16% and fewer than half of orders were approved. Their rule-based, China-based manual review process caused delays and missed fraud patterns, so their payment gateway recommended Riskified’s AI-powered chargeback guarantee to help stabilize approvals and exit ECP.

Riskified deployed its automated review and chargeback-guarantee solution across Costway’s transactions, blocking large bot attacks (1,300 fraudulent checkouts) and enabling rapid remediation—US chargebacks fell ~99.5% within three months and overall chargebacks decreased 99.7%. The partnership drove a 143% increase in approval rate, a 54% reduction in cost of fraud, roughly $9.51M in additional annual sales, and allowed Costway to pursue global growth with payment risk effectively eliminated.

Costway

Jerry Xia

Vice President