My test order came out as fraudulent

New Member
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I recently decided to start a store, and I thought I should create a test order or two before starting, but when I created one it says it has a high risk of fraud. I was using Paypal to make an order.

 

Here is what the fraud analysis had to say:

red- Characteristics of this order are similar to fraudulent orders observed in the past

grey- Card Verification Value (CVV) isn't available

grey- Billing address or credit card's address wasn't available

grey- Billing address ZIP or postal code isn't available to match with credit card's registered address

green- There was 1 payment attempt

grey- A payment method other than a credit card was used

grey- Location of IP address used to place the order is Phoenix, Arizona, United States

green- Shipping address is 17 km from location of IP address

green- Billing country matches the country from which the order was placed

green- The IP address used to place the order isn't a high risk internet connection (web proxy)

 

I don't understand why my test order was flagged as fraudulent.

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Shopify Staff
Shopify Staff
259 20 42

Hey, there.


My name is Ren from the Shopify support team and I can help shed some light on this. 

Shopify's fraud detection is very sensitive to help protect our merchants (like you!) from fraud. We have algorithms at work that are capable of finding and identifying those potential markers for fraudulent orders. The technology is constantly monitored and updated but as it's highly sensitive, some things may incorrect fall under detection.


Here are some of the common reasons why an order might be flagged;

  • Number of payment attempts
  • Number of credit cards used
  • Incorrect billing address
  • Anonymous/Proxy IP
  • Mismatched information

Sounds like you were making a test order but using a valid Paypal account to place the order? When it comes to placing test orders, it's best practice to utilize our testing tools, this way you can avoid the system flagging your test order as fraudulent. Check out our help document Testing Shopify Payments, for steps on simulating successful test transactions. 

This would be a great time to also research and look into added fraud prevention tools. You can also check your personal Fraud settings by following these steps. Make sure that those are in place and try another test order (using the credit cards numbers provided in link above) and see if the second test order gets flagged as fraudulent again. If all is good then you are good to go!

Let me know if you have any thoughts or questions on the above! 

 

Ren | Social team @ Shopify
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New Member
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Thank you for the quick reply!

 

I didn't know about the test features, but I will definitely use that from now on. One thing is bothering me still though, if my order was completely legitimate, and it still got flagged as fraudulent, then what about real customers being flagged also? Also, out of all the reasons listed for being flagged, none of them applied to me but I still got flagged. How come?

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Shopify Staff
Shopify Staff
259 20 42

Hi, again! 

Thanks for the follow up question. I imagine it had to do with these "grey" markers you specified which were: 

grey- Card Verification Value (CVV) isn't available

grey- Billing address or credit card's address wasn't available

grey- Billing address ZIP or postal code isn't available to match with credit card's

grey- A payment method other than a credit card was used

grey- Location of IP address used to place the order is Phoenix, Arizona, United States


When using PayPal, did you use an accelerated gateway that would have skipped over typing in a billing address and zip code? What order number was this test? Not every customer is going to end up meeting all of these "grey"  markers but in your test instance it was enough to raise a flag. In the event that this happens with a customer's order, you would want to reach out to them to clarify any details prior to fulfilling the order. 

Hope that helps! 

 

 

Ren | Social team @ Shopify
 - Was my reply helpful? Click Like to let me know! 
 - Was your question answered? Click Accept as Solution 

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