HIGH RISK of Fraud Sales

12 0 2

Today I received 3 sales.  They are all from the same customer and all have the HIGH RISK OF FRAUD Red alert. Ive already done research on this and also spoke with shopify support. They said it all depends on me and whether I want to fulfill the orders or not (gut based feeling).  This is not a convincing answer for me, and I need more.  If this is the case, then Ill be making "gut" based decisions here on out, and that is not solid business. 

*** So my question is this: In general, do most merchants tend to fulfill these orders, or do most merchants tend to decline these orders? I dont see how a customer could dispute a charge on their account when they're the ones who placed the order lol.

Ive disputed charges on my accounts in the past, but I had proof my credit card info was stolen. Ive never disputed a charge I MADE.....

Any ideas?

Shopify Expert
714 54 160

I hear you! High risk orders are a pain because it seems like credit card companies rarely our side as the business owner.

Shopify's fraud analysis is a nice feature, they're correct though, it's your decision whether to take the risk or not.

I researched this lately and found that of the stores I talked to, over 30% of orders marked high risk resulted in a chargeback. 37.5% in a store that I'm a partner in. Yikes.

My solution:
1) I built in a fraud guard feature into my app Order Automator (I already use the app for order automation, so figured I'd bundle in the solution).
2) I set it to automatically notify customer support when an order is marked high risk, and have instructed fulfillment to not fulfill high risk orders until talking with support
3) Support then emails the customer to verify the order (it's usually pretty easy to tell if they're legit or not + you'll create a paper trail).

If you're not sure, you can ask them to send a picture of their face next to their ID to verify it's them. Some people might not be comfortable with this, but it's a surefire way to validate... by now most people understand their are thieves and scammers out there and you need to protect your business from it.

I also included a feature to auto-cancel high risk orders if you have a large problem with it and prefer to cancel first then have the customer order after verification.

If your volume is low or you look at each of your orders before fulfilling, you don't need an app, just contact the customer to verify.


Founder of Speed Boostr (Shopify optimization and dev agency).
Creator of Theme Scientist (A/B testing app).
Creator of Order Automator (app that auto tags + fulfills orders, send emails).
Creator of Tip Jar (add a tip button to your store).
Creator of Shopify Analyzer (free performance analysis tool).
My team also builds custom apps and automated solutions.
Enjoy the adventure!
3 0 0

Hey, I received alert like that today as well. What I did is I contacted the customer and asked them to provide additional proof that credit card belongs to them or in 24 hours I would cancel the order. So far he emailed me back saying that he will send picture of his ID and the pciture of his credit card showing his name, right now I am waiting for those pictures. Usually if they don't send any proofs I rather cancel the order, although it also depends why the charge was deemed "high risk fraud." In my case it was too many attempts to use different credit cards. Hope this helps.