Having Multiple Fraud Chargebacks

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Hello Everyone! last month we got some orders from Mexico and some of them was high risk, we made a mistake and fulfilled and sent these products to customers addresses, now we are having multiple chargebacks from these fraud purchases probably cards was stolen, our the chargeback response has been submitted. I want to know that, after these fraud purchases my Shopify payment is disabled by Shopify and money on hold, Payout shows -100EUR so what going to happen if we lost the chargeback evidence and no enough money in on hold payout?. Now we are using another CC provider and enabled fraud filter and 3D secure authentication. So this will never happen again!
Please help me about this situation.

Thanks a lot!

Shopify Partner
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This is an accepted solution.

Hi Altank, 

Shoot!  Sorry to hear - It’s tough when you take a risk and end up getting hit with chargebacks.

We understand your pain as Mexico has about 3x the fraud issues as there are in the US. We work with a lot of merchants in Mexico. The false decline rate is also much higher (twice the rate in the US). We created an in-depth profile on Mexico for our merchant partners and it can be found here: https://blog.clear.sale/country-profile-e-commerce-fraud-risk-mexico.

You did the right things in putting together 3DS and a fraud system. 3DS as we all know will act like a signature for your online sales in the eyes of the credit card companies so the liability shifts off of you, the merchant. Fraud can still happen so it's extremely important to have a system in place to fight the fraud. We know that a machine learning system isn't enough as fraudsters are fierce and will continue to find ways to beat the rules and machine learning. This is why we add a layer of human intervention and check any suspect orders before making a final decision.

Selling into Mexico can be a bit tricky since you experience a higher number of fraudulent purchases.  That being said, ClearSale started out in LATAM in the early 2000’s so we’ve got that market down pat!  

ClearSale offers “Total Guarantee” protection.  If ClearSale deems a purchase valid when it’s actually fraudulent, we cover that fraudulent chargeback for you.  That’s how confident we are in our decision making.  

With that, you can explore confidently selling into riskier markets and increasing your revenue!

Feel free to reach out to shpy@clear.sale, we can talk about giving you some peace of mind when it comes to fraud.

Director of Partnerships
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I appreciate your taking the time to answer my question(s). It has really helped me understand the situation,

Thanks a bunch!

New Member
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Hi, I can actually agree with what was said by the previous user. I learned it on my own skin from something similar to what the OP experienced. I'm not a big expert in the field with a lot of studies, I just figured it all out gradually from experimenting here and there, failing and getting up again. As a tip, this is the service https://covery.ai/products/ethoca-chargeback-prevention that saved me from giving it all up. I honestly consider that no matter how small the business, it's always a good idea to implement something like this. Actually, the sooner in a company's development, the better. I wish you all the best!