High Risk Fraud Detections

JameelRashad
Tourist
4 0 1

Long Story short

First sale, this the analyst report on the fraud

  1. Characteristics of this order are similar to fraudulent orders observed in the past
  2. Negative
    Billing street address doesn't match credit card's registered address
  3. Negative
    Billing address ZIP or postal code doesn't match credit card's registered address
  4. Neutral
    Card Verification Value (CVV) isn't available
  5. Neutral
    Location of IP address used to place the order is Poza Rica, Mexico

I've made attempts to contact via email , and tried calling but the number seems bogus.

Not sure how to proceed, do I issue a refund? Or what's the other alternatives. I want to avoid being in a negative balance on my shopify payout.

Looking forward to the replies & tyvm.

dylanpierce
Shopify Partner
138 2 46

Hi there,

Sorry you're having trouble with your first ever sale, that's not normal I assure you.

Shopify should give you an overall risk rating, between "Low", "Medium" and "High" based on the factors you shared as well as hidden ones.

Contacting by phone or email is one way, ID verification is another if it's a high cost order and you'd like to know their identity lines up with their payment method for sure.

If you have payments set to automatically capture the charge, unfortunately it's too late and even a refund won't save you from a potential chargeback from the real cardholder if it is a stolen card.

When you're just first starting out and have the time, I highly recommend manually capturing payments instead of automatically capturing them. Here's a link to Shopify's documentation on this practice and how to enable it: https://help.shopify.com/en/manual/orders/get-paid

Will manually capturing payments cause me to need to charge my customers twice?

No, you can think of the first checkout experience as the flow to prove the customer has authorized the charge on their card. Then you have time to review the risk and feasibility of the order on your own time.

Then you can "capture" the charge when you're satisfied this is a low risk order or that you've confirmed the legitimacy of the order. You won't need to ask the customer to complete checkout twice.

Will automatically capturing payments and then refunding immediately on high risk detection save me from a chargeback?

No. Since automatic payments will instantly capture the payment, even refunding will leave you open to a chargeback by the card holder. Not only would you be liable for the chargeback but the refund won't count towards the chargeback.

I hope this helps!

Founder of Verdict - Anti-Fraud Apps for Shopify
  • Blockade - Easily block countries, IP addresses, VPNs
  • Real ID - Verify your customer's real IDs easily & securely
JameelRashad
Tourist
4 0 1

Soo do i cancel the order and cut my loses since ima get charged back anyways?

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dylanpierce
Shopify Partner
138 2 46

@JameelRashad I don't know your exact payment gateway or settings or the details of the order specifically, just offering advice on manual vs automatic payment capturing.

A Shopify representative would better be able to help you with the specifics, but I would continue to try to contact the customer by phone or email. If they are not responsive within a reasonable period of time I would consider cancelling and refunding the order.

Founder of Verdict - Anti-Fraud Apps for Shopify
  • Blockade - Easily block countries, IP addresses, VPNs
  • Real ID - Verify your customer's real IDs easily & securely
JameelRashad
Tourist
4 0 1

Well it was on auto payment, i changed it to manual as u suggested.

So, the payment was already captured but  if I cancel order & refund, do I still face risk of chargeback occurring?

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Amelia_W
Tourist
5 0 1

Hi, 

In a case like this it makes sense to cancel the order and refund the amount considering the IP locations. Unfortunately chargebacks do occur occasionally with these types of transactions.

A suggestion is to pre-emptively contact the bank with the proof of the refund, this should be enough evidence against a chargeback if it were to occur. Better to be safe. 

For future orders you can implement a very reasonably priced tool like Disputify that detects known fraudsters and flags them before fulfilment, to avoid fraudulent refunds and chargebacks altogether. 

https://www.disputify.com/ 


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disputify
Excursionist
12 1 3

If you don't refund it now - I'd be prepared to fight a dispute. Disputify has a handy checklist that you can use for this, just to make sure you are as prepared as possible.
Also - I'd recommend you look at installing a range of fraud detection tools that can help prevent chargeback and refund fraud.

You can find the "Disputing a Chargeback Checklist" here: Disputing a chargeback Checklist

If you're interested - take a look at the Disputify App. We may be able to save you some headaches as you build your e-commerce empire!

Disputify App: https://apps.shopify.com/disputify

 

 

 

Disputify fraud and fraudulent refund detection, free plan available: https://apps.shopify.com/disputify
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