May 1, 2023
SnowCloud blocks $3.2M in fraud and transforms resort and amusement operations
SnowCloud’s resort managment platform is transforming the resort and amusement business by streamlining operations and creating a frictionless relationship between operators and guests. With its SnowPay secure payment processing powered by Stripe, operators can be assured knowing that their guests are protected against fraud and that their earning potential is maximized.
Experience-based businesses such as ski areas, resorts, and amusement parks are highly susceptible to fraudulent charges made with stolen credit card numbers—resulting in billions of dollars in lost revenue each year.
“We would get disputes, but our payments provider at the time couldn’t quickly trace them back to a specific guest,” said Brett Bagley, VP of product and experience at SnowCloud. “Most resorts just accepted these disputes as a cost of doing business, but it was a lot of money. It’s something that plagues the entire resort and amusement industry.”
With SnowPay, SnowCloud is able to create custom rules to reduce fraudulent sharing of ski passes and to block or flag charges based on a cardholder’s SnowPay risk score, IP address, or geographic location. With SnowCloud for the first time ever, the payment processing and the access control software are linked in real-time. This allows SnowCloud to automatically block or flag transactions based on data from the payment processor. By using this functionality at Mountain Creek Resort in New Jersey, SnowCloud was able to identify suspected fraudulent profile entries. By identifying these profiles in its system and then contacting the individuals, the resort was able to identify an international criminal ring that was selling discounted tickets purchased with stolen credit card numbers, amounting to over $36 million in fraud. The company then coordinated with authorities to pursue legal charges against the local perpetrators.
SnowCloud’s SnowPay functionality also uses payment data to help it challenge fraudulent payment disputes, gaining visibility into when a card was used to make a payment, along with the specific access point, products purchased with the card, and more. By crafting custom rules with SnowPay for Fraud Teams, SnowCloud has been able to block over $3.2 million in fraudulent transactions over a six-month period and see a 15% increase in chargeback disputes won.
To learn more about how SnowPay and Stripe are helping to combat fraud and make the guest experience more friction-free check out Stripe's recent case study highlighting their partnership.
