Adaptive Returns Engine
Enforce Returns Dynamically
Effectively deter fraud while improving the experience for genuine customers. AI-based decision engine detects risk signals, adds friction for high-risk activities, and rewards trustworthy behavior.
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How It Works
Additional Fees for Returns
Return InStore Only
Hold Refunds till Inspection
Require Photo Evidence
- Instant refunds
- Extended return windows
- Free returns
- Rebates on exchanges
- Default store policy
- Additional fees for returns
- Only in-store returns
- Extend refund inspection duration
- Block fraudulent transitions
- Set return thresholds
- Deny return request
Features
What do we offer?
True Customer Value
Segment customers beyond purchase totals. True Customer Value factor in returns, cost of returns and margin to paint a more accurate picture.
Behavioral Biometrics
Analyze purchase and return trends correlating to abuse patterns - One and done wardrobers vs bracketers vs return window exploiters.
Device & Location Fingerprinting
Analyzes device type, IP address, and location data in real-time, enabling e-commerce businesses to instantly identify and block suspicious activity.
Custom Alerts
Configure automated guardrails to alert customer support on high-risk return requests.
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Network Intelligence
Advanced machine learning detects multi-actor fraud through integrated analysis of consortium data, models, risk heuristics, and graph recommendations.
Use Cases
Common types of return fraud and abuse
Return fraud spans a broad spectrum, from genuine customer errors to large-scale operations conducted by organized crime groups.
Empty Boxing
Empty boxes or worthless items returned. Retailers often side with customers on first try.
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Wardrobing
Items are briefly used, then returned as "unused" for a full refund, common with high end fashion, electronics.
Guarantee Abuse
This abuse involves frequent returns, upgrades, or false defect claims exploiting satisfaction guarantees.
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Reseller Abuse
Resellers buy limited-release items to flip for profit but return unsold goods. This creates artificial scarcity.
FTID Fraud
Redirecting an empty return package by altering the shipping label, then falsely claiming the item was mishandled.
Item Not Received Claims
INR fraud occurs when customers falsely claim refunds while keeping the purchased items.
Solutions
What else do we offer?
Dynamic Order Optimization
Stop fraud before it reaches your fulfillment center. Screen orders with AI to detect card fraud, reseller abuse, coupon stacking, and other fraudulent activities in real-time.
Smart Returns Receiving
Intelligent return processing identifies legitimate versus fraudulent returns, helping warehouse teams prioritize their handling.
Frequently Asked Questions
Got Questions? We’ve got Answers
What does Pinch AI do?
Pinch AI helps retailers optimize the post-purchase experience by using artificial intelligence to segment customers, reduce return abuse, and improve operational efficiency. By combining behavioral intelligence, machine learning, and deep knowledge of fraud tactics, Pinch identifies and prevents abusive behaviors—like serial returns—while recognizing and rewarding high-value, loyal customers.
How can I tell if my business is experiencing return abuse?
Common signs of return abuse include:
- A high volume of returns or disputes for the same items over time
- Increased reports of damaged, missing, or used products arriving at your warehouse
- A noticeable spike in return-related queries to your customer service team
- An uptick in payment disputes or fraud claims
Is Pinch AI right for my business?
Pinch AI works best with retailers processing over $50M in annual GMV, especially in verticals like Apparel, Footwear, Luxury, Consumer Electronics, Home & Kitchen Appliances, and Durable Goods. That said, we also support fast-growing businesses below that threshold—especially if you're seeing return rates creep into double digits.
What does integration with Pinch AI look like?
Pinch AI supports two types of integrations:
- App-based: Available for popular e-commerce platforms like Shopify, with plug-and-play installation that takes just minutes.
- API-based: REST APIs for custom storefronts. Integration typically takes 2–4 weeks, depending on the availability of your technical team.
We also integrate seamlessly with leading RMS and WMS solutions to ensure smooth implementation.
How do I measure the impact of Pinch AI?
Our real-time dashboards track key performance indicators (KPIs) so you can measure the impact of Pinch from day one. Typical results include:
- Reduction in return abuse
- Higher restocking and resale rates
- Lower return-related operational costs
- Increased automation across the returns process
What is Pinch AI’s pricing model?
Pinch AI is priced to deliver a net positive economic impact for merchants.
- For SMBs using our turnkey app integrations, pricing is based on a per-order usage fee.
- For enterprise customers using our REST APIs, pricing includes per-order volume-based discounts. Additional fees apply for integration, maintenance, and overages.