First order - 'risk of fraud' - please help

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Tourist
15 0 2

Context

So this is my first store, it isn't finished but it is live. I haven't done any marketing yet other than setting up social media accounts, although these haven't been advertised.

 

I received an order this morning for 2 items totalling £50, GREAT! It's working :D

 

Problem

However, when I looked on my shopify admin page it shows the 'possible fraudulent transaction' message.

 

OK fine, if it was obvious I would simply refund and not send the item, but I don't understand WHY it is possibly fraudulent. The only reason I can tell is that the delivery address is different to the billing address.

 

What I need

 

Can someone tell me what I need to do, as a UK provider? I offer next day dispatch so don't want to upset the customer if it is a genuine order.

 

Many posts say ring them to confirm. But what am I confirming, what do I ask? Can I ring the bank to check if this is normal activity? 

 

Please help, thank you.

 

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Shopify Staff
Shopify Staff
823 50 103

Hi there @Nifty_Discounts!

 

Don here from Shopify. :)

 

Sorry to hear that you've encountered your first order with an elevated risk analysis.

 

Determining whether or not you want to proceed with orders like this will be an important part of doing business online, so I'd like to share some information and processes you can use here to make the most informed decision possible.

 

Firstly, you can learn more about the built-in fraud analysis tools in the admin here

 

Check that out so you can best understand the information being presented to you for your orders.

 

You mentioned seeing advice to ring the customer phone number, that's just one of a number of fraud prevention steps available to you.

 

Part of the reason why you will want to guard against potentially fraudulent orders is to avoid having to deal with a chargeback.

 

This happens when a customer disputes a charge on their card, often as a result of if having been used fraudulently.

 

Check out all the info above, consider which fraud prevention steps you might like to try and then come to an informed decision about how you wish to proceed for your store.

 

Longer-term, if you are looking for a way to insure yourself against fraud there are apps like Signfyd which offer fraud protection for orders for a percentage fee.

 

As with all third-party apps in our store, you can reach out to the developers directly with any support queries you have by using the contact details listed there on the app store page.

 

All the best!

 

 

Regards,

Don

Don | Social Care @ Shopify
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Tourist
15 0 2
OK I tried calling and didn't get an answer, but I personally don't answer calls from an unknown number so I have drafted an email... If I haven't heard back I'll just refund the payment. 
 
Can I please ask about chargebacks and the fee involved.
 
If I refund the payment and then later down the line it turns out the credit card was stolen, am i liable to a 'charge' (£10 UK) as described in the chargeback guidance you pointed me towards? If so what is the best way to stop this from happening? The app you sent me looks good
 
Thank you
 
Here is my email, it might be useful for others in the same situation?
 
Dear XXXX
 
Thank you so much for your order with Nifty Discounts.
 
We have prepared your goods for dispatch but require confirmation of identity before we can ship, this is due to a red flag raised by the credit card company.
 
Can you please email a copy of the following ID which corresponds with your billing address (a photo of the documents is acceptable):
  • Passport; or
  • Driving Licence 
If you do not have any of the above please provide two of the following corresponding with the billing address:
  • Utility bill
  • Council tax bill
  • Credit card bill
At Nifty Discounts we take fraud seriously to protect our customers. Please provide the information above within 24 hours to reserve your items, if we haven't heard back from you we will refund the payment and mark the items as available in our store.
 
Best wishes,
 
James Naylor
Customer Service Manager
admin@niftydiscounts.co.uk 
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Shopify Staff
Shopify Staff
823 50 103

Hi again @Nifty_Discounts!

 

Don from Shopify once more. :)

 

If you go ahead and refund the full amount of the charge it would not be possible for a cardholder to initiate a chargeback as there would be no charge to dispute.

 

The thing to be aware of here is that if you only partially refund the order, it would still be possible for the customer to dispute the charge for the full amount (and you would also be subject to the relevant fee for your region).

 

I have seen this happen in cases where merchants refunded all but one penny or cent of the charge, so be very careful to refund the full amount should you choose to do so.

 

Your email draft there looks great, and you make it clear that the security of your customers is why you are doing this so I think it should be understandable why you are doing so. :)

 

 

Regards,

Don

 

Don | Social Care @ Shopify
 - Was my reply helpful? Click Like to let me know! 
 - Was your question answered? Mark it as an Accepted Solution
 - To learn more visit the Shopify Help Center or the Shopify Blog

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