Honor System?

New Member
6 0 0

Since this is my first time setting up an electronic storefront, I am venturing into what seems like a new territory to me. So, I have lots of basic questions. Here is one. What is preventing a customer from claiming that he never got what he ordered, when he really did, and simply asking for another shipment again, thus cheating me?

Replies 2 (2)
Shopify Staff
Shopify Staff
480 68 136

Hi, @Xarzu!

I'm Miles from the Social Care team at Shopify. How exciting that you're setting up your first store online! Have you sold in person before, or are you new to being a business owner?

If a customer claims they have no received their items, they may contact you or raise something called a chargeback. I'll walk you through what to do in each scenario and also give you some tips to help avoid fraudulent orders on your site.

When a customer places an order using Shopify Payments, we run an automatic risk assessment which you can view right inside the order. This assessment is a great way to gauge whether a customer is a low, medium or high risk. If they do pose a risk, you're able to contact them to confirm their order and details before making a decision on whether you would like to fulfill the order or not. The analysis looks like this:

You can learn more about the risk assessment in this guide.

If you have fulfilled an order and shipped it off, you may receive a chargeback. When a customer has an issue with a charge on their credit card, they can contact their bank to dispute the charge. The bank then makes a chargeback or inquiry. The customer can be one of your customers or someone who believes that their card was used on your store without their permission. If the customer's bank makes a chargeback, then the bank takes the disputed amount from you right away. The cardholder's bank also takes a chargeback fee from you. If the customer's bank makes an inquiry, then they don't take the disputed amount or a fee right away.

We have a great guide on how you can deal with chargebacks here.

Lastly, as you're new to the e-commerce world, I recommend checking out Shopify Compass. Shopify Compass provides you with webinars and courses on things like store design, marketing and more. It's 100% free for everyone and new content is being added all the time. This program will help you drive more traffic into your store and also convert that traffic into sales.

Starting a store can be an exciting time, but there are risks involved. You've asked some great questions and I hope this has helped answer some of them. If you have any other questions at all, please feel free to reply to this thread.

Miles | Social Care @ Shopify 
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Shopify Partner
160 3 68

Hi @Xarzu , welcome to Shopify

What you're describing is what is called "Friendly Fraud" in the industry. You may be familiar with chargeback fraud, when the customer is using a stolen credit card to make a purchase.

Typically there are signals that don't line up in those cases. The criminals typically use a made up identity with a mismatching billing to shipping address (because they're using a stolen card).

However, friendly fraud is much more difficult to predict or detect. That's because all of the signals line up, the customer's address is the same as the billing address. Their IP address is in the area.

If you receive a chargeback from an order that's clearly not by a stolen identity, then your best chance to fighting it is providing all of the evidence to the bank that is issuing the chargeback.

If you have further questions about how chargebacks work, or how to prevent them just ask!


Founder of Verdict - Anti-Fraud Apps for Shopify
  • Blockade - Easily block countries, IP addresses, VPNs
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