AI in Action: How to Achieve Higher Payment Approvals and Lower Chargebacks

In the recent past, C&A (fashion retail) faced a payment authorization rate below 50%, compromising both the shopping experience and revenue potential. With a high decline rate from issuing banks and recurring fraud attacks on the website, overall performance was significantly affected.

By integrating with a risk management solution that uses a combination of machine learning and customizable rules to detect and prevent payment fraud, C&A began blocking fraudulent orders even before authorization. In the first few months, the results were remarkable: the transaction approval rate had risen to 79%, the chargeback rate had dropped to 0.4%, and risk blocks, initially at 20%, had gradually reduced to 4%.

As approval rates improved, we initiated an integration with a new AI-powered fraud prevention product capable of automatically adjusting rules and responding quickly to new attacks. After months of monitoring and adjustments, we successfully increased the approval rate by an additional 5% and further reduced chargebacks, keeping them below 0.4%.

With the continued use of artificial intelligence, we achieved even better results throughout 2025, with an approximately 84% approval rate and chargebacks below 0.3%. In the past, C&A experienced a chargeback rate exceeding 1% of sales.

Key Takeaways

• Payment challenges: C&A faced a low payment authorization rate (below 50%) in 2022 due to high decline rates from banks and recurring fraud attacks, significantly impacting the shopping experience and revenue potential.
• Solution with Adyen: The integration with Adyen RevenueProtect, a risk management solution that uses machine learning and customizable rules to detect and prevent payment fraud, allowed C&A to block fraudulent orders before authorization, increasing the approval rate to 79% and reducing the chargeback rate to 0.4% by June 2024.
• Additional improvements with AI: With the integration of Adyen Uplift, an AI-powered fraud prevention solution, C&A was able to increase the approval rate by an additional 5%, further reduce chargebacks, and achieve an approval rate of approximately 84% in 2025, resulting in R$ 16 million in additional approved transactions.
• Conclusion: C&A's partnership with Adyen and the implementation of AI-powered fraud prevention solutions demonstrate how the combination of innovation and technology can transform challenges into measurable growth, significantly improving payment approval rates and reducing losses due to fraud.

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