Cost of Fraud Calculator FAQs

General Questions Access and Login Questions Using the Cost of Fraud Calculator Additional Assistance

General Questions | Top

What is the Cost of Fraud Calculator?
The Cost of Fraud Calculator is an interactive tool designed by Riskified and the Merchant Risk Council to help online merchants better understand the true financial impact that online fraud has on their business. Through a series of questions, the Calculator analyzes a merchant's fraud operations and produces a summary which may be shared with other users.

Why should I use the Cost of Fraud Calculator?
The Calculator can help merchants identify which areas of their operations may require additional investment. The resulting Cost of Fraud Report produced by the Calculator can quantify how investing more resources -- tools, people, or both -- can help merchants manage fraud more effectively, reduce false declines, and ultimately improve the bottom line.

Is there a cost to use the Cost of Fraud Calculator?
No -- the Cost of Fraud Calculator is free to use, and is accessible both to MRC members as well as non-members.


Access and Login Questions | Top

How can I access the Cost of Fraud Calculator?
The Cost of Fraud Calculator may be accessed by visiting the MRC Resource Center, then clicking "Cost of Fraud Calculator" in the left-hand navigation menu. Alternately, click here to access the Calculator login screen.

Cost of Fraud Calculator login screen


How do I create an account to use the Cost of Fraud Calculator?
If you have not used the Calculator before, you will be prompted to create an account. This is required so that your progress is saved throughout the tool, and so that you are able to retrieve -- as well as modify, if desired -- a previously saved report.

To create an account, visit the Calculator login screen, then click "Sign up here" after the "Don't have an account yet?" text. You will be prompted to supply your company name (Shop Name), website (Shop URL), and email address. (Note: for the Shop URL field, enter the website domain and, if applicable, website sub-domain. Do not enter the protocol part of the URL. For instance, for the URL https://examplestore.com enter examplestore.com in the Shop URL field.)

After entering these details, click "Get Started" -- a confirmation email will then be sent to the email address you supplied, and will contain a link to establish an account password. Click the link and follow the instructions to create a password for your Cost of Fraud Calculator account.

Can I provide my MRC account credentials to use the Cost of Fraud Calculator?
Because the Cost of Fraud Calculator is hosted by Riskified, not the MRC, users must establish an account with Riskified to access the Calculator; a person's MRC account credentials will not enable the user to access the Calculator.

MRC members interested in using the Calculator may certainly opt to use the email address associated with their MRC account. For security reasons, the MRC recommends establishing a unique, strong password for each password-protected website, including merchantriskcouncil.org and the Cost of Fraud Calculator site. You may wish to use a password manager tool to retain your passwords.

Use of the Calculator is subject to Riskified's Privacy Policy and Terms of Service.

I forgot the password I used for the Cost of Fraud Calculator -- how do I reset it?
To reset your password for the Cost of Fraud Calculator, visit the login screen for the Calculator, then click "Reset it here" after the "Forgot your password?" text. After supplying the email address used to create your Cost of Fraud Calculator account and clicking the "Reset My Password" button, an email will be sent containing instructions on how to reset your password.


Using the Cost of Fraud Calculator | Top

What information do I need to supply to use the Cost of Fraud Calculator?
The Cost of Fraud Calculator is organized into four parts:

  1. Introduction
  2. Cost of Managing Fraud
  3. Cost of Declines
  4. Cost of Poor Customer Experience
The Calculator is comprised of 22 total questions, 14 of which are required and eight of which are optional. While the optional questions are just that, completing as many of these questions as possible will help produce a more holistic final report.

Cost of Fraud Calculator welcome screen

Note that the Calculator saves responses after completing each screen. You may always return and modify a specific response if needed by clicking the back arrow and changing an answer.

However, in the interest of efficiency, we recommend reviewing the questions below in advance and recording each of the specific amounts, costs, rates, etc. Click the button just below to download a PDF with all questions asked in the Calculator, perfect for printing and taking notes.

Download Worksheet

Introduction -- two required questions are asked up front:

  • Annual sales volume
  • Average order value

Cost of Managing Fraud -- this section contains three sub-sections (Chargebacks, Fraud Team, and Fraud Tools) which, when combined, contain five required questions and five optional questions:

  • Annual amount of chargebacks paid out
  • Annual amount of chargeback fees paid out [optional]
  • Annual cost of labor that goes into handling chargebacks [optional]
  • Annual amount spent crediting customers for fraudulent orders [optional]
  • Yes/no question on whether chargeback rate has impacted authorization rate [optional]
  • Yes/no question on whether chargeback rate has impacted interchange fees [optional]
  • Annual cost of labor that goes into manually reviewing orders
  • Annual cost of labor that goes into research, modeling, and other fraud team tasks
  • Annual cost of fraud tools used to filter and review orders
  • Annual cost of labor that goes into integrating and optimizing fraud tools and systems

Cost of Declines -- this section contains three sub-sections (Fraud Filters, Payer Authentication Services, and Post-Checkout Declines) which, when combined, contain five required questions, two of which have optional additional responses:

  • Whether your company has any systems or filters which block transactions based on specific criteria [yes/no question]
    • If yes, which criteria are used to block incoming orders -- four possible checkbox options: blacklists, AVS mismatches, risky countries, and billing & shipping mismatches [optional]
  • Yes/no question on utilizing 3D Secure
    • If yes, which of three specific criteria is used: all incoming orders, orders from specific countries only, or dynamically based value and country [optional]
  • Percentage of annual total payment volume (TPV) which is declined
  • Percentage of declines which wind up being false positives
  • Customer lifetime value
For information on how to calculate customer lifetime value, please see the infographic posted here.


Cost of Poor Customer Experience -- this section contains three sub-sections (Delayed Shipping, Customer Friction, and Customer Insult Rate) which, when combined, contain two required questions and one optional question:

  • Percentage of orders which are delayed because of fraud reviews
  • Percentage of orders which involve contacting a customer for additional information
  • Customer insult rate [optional]

How much time do I need to complete the Cost of Fraud Calculator?
If a person has gathered all of the required data points in advance, the Calculator takes only a few minutes to complete. It can take considerably longer, though, if one needs to determine the various amounts, costs, rates, etc. while completing the Calculator.

To download a PDF with all questions asked in the Calculator, click the button just below. We recommend referring to this PDF or this FAQ page while researching responses to the various questions. You may also wish to print a copy of the PDF and take notes directly on the page.

Download Worksheet

What options are available to navigate between the various screens in the Cost of Fraud Calculator?
Laptop and desktop users can use either a mouse or their keyboard to navigate between screens. Those who prefer to use their keyboards to navigate can press the ">" key to move to the next screen and the "<" key to move back one screen. Once on a screen, simply use the Tab key to move to the next question and Alt + Tab to move to the previous question, as depicted in the screen snippets below.

Cost of Fraud Calculator keyboard navigation
Cost of Fraud Calculator keyboard navigation


What are the question mark icons next to some of the response options?
Tooltips are accessible next to some of the responses within the Cost of Fraud Calculator to help define specific terms or acronyms, or to add context. These tooltips are accessible by clicking the icon with a question mark in a circle, like in this example:

Cost of Fraud Calculator tooltip example


How do I access the Cost of Fraud Calculator report?
Once you have answered all of the required questions in the Calculator, a "Congratulations" screen will appear.

Cost of Fraud Calculator report ready

Simply navigate to the next screen, which will display your customized Cost of Fraud Report.

Cost of Fraud Calculator report screen


How can I share the Cost of Fraud Calculator results?
Your customized Cost of Fraud Report can easily be shared with your colleagues and with company leadership. To the right of the Report is a Share section; a Share button also appears just below the Report.

Cost of Fraud Calculator report sharing

Click "Share" in either location -- an Invite window will appear. Enter the email address of the recipient and a brief message in the fields provided, then click "Invite" -- the recipient will receive an email from marketing@riskified.com with the subject line Invitation to view MRC's Cost of Fraud Report. The recipient simply needs to click "View Report" in the body of the email, which will direct the user to set a password, create an account, and view the completed Report.

Cost of Fraud Calculator invite window


How can I print the Cost of Fraud Calculator report?
Just beneath your customized Cost of Fraud Report is a Print button. Click "Print" to print a hard copy of the report, or to save the report as a PDF.

Cost of Fraud Calculator report printing


Additional Assistance | Top

Who should I contact if I have a question not listed here or need additional assistance?
If you have any questions after reviewing this FAQs page, please contact the MRC by filling out the MRC Contact Us form and selecting the Website / password / technical issues radio button.