The Retail Equation was founded in 1999 and is the leading technology provider of fraud and abuse detection for retailers' product returns and exchanges. The Retail Equation pioneered the use of statistical models to track consumer behavior and detect fraudulent or abusive returns or exchanges.

The Retail Equation’s signature product, Verify-2™, utilizes an ASP model to provide return and exchange authorization services that are initiated by either a VeriFone® or similar type platform on a retailer's POS system. To initiate a transaction, a user of The Retail Equation’s service swipes a driver's license or state I.D. card through these devices, and similar to credit card or check verification, the data is transmitted to The Retail Equation's host server for an approval for return or exchange authorization. The Retail Equation detects fraud through utilization of deterministic rules and statistical models.

The Retail Equation’s Board of Directors and senior management team have worked together for the past 17 years, with a successful track record of technology and professional service start-ups. The Retail Equation is privately held.