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Cutting Chargeback Costs and Expanding Internationally is Music to Spotify's Ears

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An important source of revenue for Spotify is their e-card product. E-cards allow buyers to give the gift of Spotify to others, or redeem on their own accounts. Unfortunately, recurring fraud attacks and high chargeback costs had caused Spotify to temporarily suspend e-card sales on a number of occasions. But they responded with revised fraud prevention techniques.

Results

  • Eliminated $145,000 in monthly chargeback costs and lost revenues
  • Over 2x the number of e-cards sold, contributing $10 million to revenues
  • Facilitated international expansion to 57 countries in just 7 months
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We went from a 10% chargeback rate on e-card transactions to 0.1%-0.2%. It’s a tremendous achievement, we were amazed by the results.
Federico Pezzotti,
Head of Payment Operation

More Resources

Digital Goods and Downloads

Digital Goods Fraud Solution

www.kount.com/industry-solutions/downloads-streaming-fraud-detection

For 20 years, Kount has been a leader in developing cutting-edge technology to reduce fraud and chargebacks, while still allowing merchants to expand their product offering and geographical sales efforts.

Learn More
Chargebacks Can Hurt You

Download What You Don't Know About Chargebacks eBook

info.kount.com/ebooks/what-you-dont-know-about-chargebacks-can-hurt-you

Discover the key capabilities your fraud prevention solution needs to detect and shut down fraudulent chargebacks immediately – before they overwhelm you.

Get eBook
Get Out of Chargeback Hell

Watch Get Out of Chargeback Hell Video

www.kount.com/video/get-out-of-chargeback-hell

Kount lets you precisely dial-in your rate so the revenue generated by borderline approvals consistently exceeds the chargeback costs of those borderline approvals. All the while staying under processor chargeback thresholds.

Watch Video