Fraudulent orders

New Member
2 0 0

I have had 2 'high risk' orders over the weekend, both from the same customer.

I have read that the best thing to do is cancel the order. Does this mean processing a refund? The order already comes through accepted on my site.

What happens if the order does end up being a fraud and Ive made a refund? who looses out here?

If anyone can explain how the whole credit card fraud works between us as store owners and stripe/Shopify that would be really helpful.



Shopify Staff
Shopify Staff
509 0 99

Hey Beth, 

I'm Ann, from the team here at Shopify :)

It's great to hear that you are taking the preventative steps needed in order to filter fraudulent orders and avoid chargebacks. When you're ever suspicious about an order, it's a great idea to take a look at the following in order to know more about the order and be able to make a decsion on fulfilling it or not:

  • When reviewing orders be sure to look at the Billing Address and Shipping Address. For example, if the billing address is in the United States, but the shipping address is in a country such as Ireland or Russia, you might have a fraudulent order. Other things to look for are names between shipping/billing being different or the billing address not matching what is on file with the credit card company. In this case, what you can do is reach out to the customer before sending out the order to see if there is any explanation they can give for this, then choose to fulfill or cancel the order based on that.
  • Also, we offer a detailed risk analysis section for each order. Please make sure to visit your orders page in your dashboard and look for any with red or yellow exclamation points. You should see an associated risk level and by clicking the 'full risk analysis' link you will be able to see the reasons we believe there could be some risk associated with those orders. Here is more information about that. 
  • Any time you see a flag set on the account for any reason you should be careful to verify the customer via telephone before shipping anything out. It's better to be on the safe side than risk high chargeback rates which can cause losses on multiple levels. If possible, it's worth doing this on every order but we realize that can be difficult. That is why we try to provide you with the information and tools you need to make an educated decision on whether or not to ship your products.

If you would like to get even more in depth with your fraud prevention methods, you can also implement one of the many fraud prevention apps we have available via the Shopify App Store such as:

Once you make the decision that you don't trust the information enough to go through with the order, refund and cancel the order right away. That will send the money back to the original card, and you won't suffer any concequenes in the future. If you don't do that, you might end up with a chargeback on your hands, which means that the credit card in question issued a chargeback, which means they reverse the charge, and hold the funds until they decide who to give the money to. You can read more about this on this page in our Shopify Manual.

I hope this helps! If you have any more questions or concerns feel free to reach out to us here :) 

Have a great one,

Ann | Social Care @ Shopify 
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7 0 1

ally, there is a warning about the billing adress being different and also the IP adress from a different location

had something like this and cancelled the order (buyer would not give out his ''real adress'' of course, because he did not have it. In any case, I would have asked him to buy again to see what the system says, because personnally, how would I know. I also go on Google map and see where it is delivered. This place was like a factory in the middle of nowhere.

But I believe Shopify has a flaw in their system because this person trying to buy with someone else's credit card, well, the card owner does not get a warning of the fraudulous attempt after we turn it down..

I asked Shopify if they could pass on the info I had on this buyer (where it gets delivered) to the credit card company, but their system is not set for this