How can I prevent chargebacks for high-risk orders on stolen cards?

[Violka]

So I have a customer who placed three orders with us, and it has been flagged as high-risk orders. The analysis checks by Shopify are all green dots and only one red dot: Characteristics of this order are similar to fraudulent orders observed in the past". We have asked the customer through email to confirm the order detail as well as the shipping address. All items are shipped and delivered now. 

Now after a few weeks, another person from a company emailed us saying their company credit card information has been stolen and those three orders are fraudulent charges. And then we realize that the card billing info are linked to the company and the receiver's name is also the company name but the customer email address is not the company email suffix such as "xxxcompany.com". 

In cases like this, where the person steals the credit card information and has access to the email account (either fake one or the real one), even if we gather email confirmation from the customer, it will still not be qualified to win the chargeback from the bank. What should we do in such cases? Is there any suggestion about what kinds of evidence/confirmation we should get from the customer that will be helpful for future chargebacks? Or we should simply rejects hisk-risk orders completely? We have lost a few cases like these and it is really frustrating. 

Thanks

[Beacon-Jason]

Hi @Violka 

If the card information was stolen, the bank will return the funds back to the original account holder.  You can't win a chargeback if the card was rightfully stolen by a third party unless you can prove that the original card holder was some how not telling the truth and making a false claim. 

Third party bad-actors are much more smarter than you think and when you asked to verify their orders despite Shopify rated the order as high risk, you were not likely communicating with the original card holder. Without the proper verification in place, asking to confirm their information by email is futile at best.

In most situations, you should just cancel any high risk orders, and/or install a fraud system to verify customers. 

I hope this helps you.