OK thank you.
Thank you! In that case, the information you provided above would make sense as the total amount to be deducted from your account would be $721. Any credit card fees or transaction fees charged to you would be refunded back to the account. Processing the refunds will also ensure that a chargeback can not be opened against you should the order have turned out to be fraudulent.
Are there any similarities to these high-risk orders? I.e., are they using the same email, name, phone number, location? Or are they all different?
Hmm, that does make it a bit more difficult I'm afraid. The reason I ask was that if they were using the same email, name, or address, then you could have looked into using Fraud Filter, or free fraud app which allows you to automatically cancel and refund orders based on different rules. Seeing as there are no direct similarities, there wouldn't be a direct way to block the orders from being placed. How many orders would you say this has happened on?
First of all, I'm sorry to hear this had to happen to your store.
Depending on your state (If you are located in the U.S), you can file for a small claim case at your district court. However, it may or may not be worth your time depending on the total loss you receive. You will pull your hair over the paperwork and taking the time to get your money back. Most merchants that we know do not have time to do this and the loss is not significant enough to go to court over.
The best way you can deal with the situation is to learn how to stop future attacks so it does not happen to you again. You can also learn how to better look out for fraudulent orders using various tools like ip-tracker.com or ip-score.com to check if the IP was blacklisted to some extent. We wrote two articles on how to better look out for fraud patterns. https://lizuna.com/medium.
Lastly, the Shopify app store has several more advance fraud applications for you to use. Look at each fraud app and find the best one that fits the need for your business.
You can lose money in several different ways.
For example, are you absolutely sure the order you are canceling is actually a fraud order? Sometimes if you make the wrong decision to cancel the order, yet the customer was a real customer, you will lose that customer forever.
Another way you can lose money is from chargebacks fees. On top of your principal lost, banks and institutions charge either a percentage fee or a flat fee. If you lose a Paypal case, Paypal charges you $20.
Just be very vigilant when processing risky orders and don't let a lost in sale discourage you from continuing building your store. Although fraud orders happen, it accounts for less than 2% of the time unless you are particularly in a risky industry.