High risk of fraud detected - Billing street address doesn't match credit card's registered address

[Niza]

Hi Shopify team,

I have an order alert as ahigh risk of fraud detected.

One of the reason is the Billing street address doesn't match credit card's registered address.

From my online shopping experiences, if my billing address doesn't match credit card's registered address, the payment wouldn't go through successfully.

So I wonder, why shopfiy pay allow this to be happened? Why don't you restrict the billing address that have to match the credit card's registered address to make it more secure? why do you leave this problem for us to have the risk for chargeback, and if we got a chargeback, you charged a fee on top. I think this seems very unfair and doesn't make sense to me. 

[Ted]

Hi @Niza,

Ted here from Shopify, thanks for reaching out to us!

For Shopify Payments, not all merchants want to cancel orders imminently if the billing address and credit card owners registered address do not match. In some cases, the store owner would prefer to review the order in full and then determine how they would like to proceed. In this case and as you've mentioned, Shopify Payments will let the merchant know if the order has been deemed High Risk. 

That said, we also have merchants who would prefer to imminently reject these orders if the above scenario were to occur. This option would have been available when configuring Shopify Payments, but you can also add it by selecting Settings > Payments > Shopify Payments/Manage > Fraud Prevention, in your admin. After that, simply click the AVS box as shown in the screenshot below:

Shopify Payments provide an option where orders can be cancelled if the CVV code fails verification. More information can be found here if you would like to take a look.

In regards to the order you currently have, I would recommend analysing the order as mentioned in this guide. The best thing to do if you are ever unsure if you should fulfil the order or not would be to contact the customer as mentioned in the guide to verify their billing or credit card information. Other than this, you can always cancel/refund the order and send them a draft order where they can buy the products again if they wish (with the AVS box now ticked). You could then email the customer and let them know that there was an issue with the payment or order itself and that it had to be cancelled. 

If there is anything else I can help you with, please let me know, I'm happy to help!

Many thanks,

[ClearSale]

Hi Niza, 

Faye here with ClearSale.  

I wanted to chime in on your discussion with Ted around fraudulent transaction reviews.  Reviewing your own orders can be tricky, to say the least.  There are a myriad of factors to consider (like the awesome guide that Ted provided) but not everyone has the time or resources to manually review these high risk orders.

This is why simple rules or even machine learning can't always make the decision, and human intervention is the best way to approach the situation . Keep in mind also that during these changing times of COVID, other strange factors are emerging.

We've found that there are more address mismatches than ever before with people moving to a second home or living with relatives to avoid high areas of the pandemic. Because of this, billing and shipping addresses are matching less and less, but the sales are oftentimes still legitimate.

Certain verticals such as luxury goods also have a tendency to have different addresses (hotels, second homes, etc. for these often times higher income traveling types).

These are just two examples of many that can come into play when trying to make a decision.

ClearSale is a fully outsourced fraud solution. We pair our machine learning with a team of nearly 1,000 well trained analysts to dig into these types of decisions and give you a final answer so you don't have to spend the time making such decisions.

If you have questions or want to discuss in more detail you can reach us at shpy@clear.sale"

[Niza]

So this order turned out to be a fraud order, and a chargeback was opened to the order.

I haven't acutally sent out the order, so if I cancel the order now, does it mean the chargeback will be cancelled automatically as well?

I will not get charged from the Shopify either? I will have nothing to lose? 

[Amy092]

Hi Niza,

What happened with the chargeback? Did Shopify side with you or the buyer? I have a similar issue where only  the Billing street address doesn't match credit card's registered address and have had a chargeback case that I lost. Not sure how to proceed. 

[Niza]

Hi Amy,

Unfortunately, I lost from the chargeback case too.

But it's ok, I didn't send out the order because I was hoping that I will have luck. I was waiting to see the buyer's reaction and see how this will turn out. Paid £10 to learn a lesson

I don't think there is much we can do.