How can merchants prevent fraud chargebacks with Shopify+?

[JerryBoc]

I have been receiving several chargebacks (Fraud) lately . As a merchant how can we protected ? Is there any protection that comes with the Shopify+ program? Please let me know . Thanks 

[Beacon-Jason]

Hi @JerryBoc 

You have several different (free) options in terms of fraud protection for Shopify plus.

One, is Shopify Flow (free for Shopify Plus/ Advance). You can use this to create rules based on certain conditions that meet certain fraud criteria. You can set automations like, blocking customers that present certain risk signals .  It requires a bit of configuration on your end.

Second, is Shopify Fraud filter. This is another rule based app where you create simple conditions based on certain fraud rules. Example: Cancel orders with IP that matches 1.1.1.1

Third, Shopify also recently launched Shopify fraud protect, which is exclusive to Shop Pay. You might want to see if this is eligible for your business.  

Fourth, Shopify built in fraud analysis in the order page sometimes shows you which orders are rated high/medium risk. Are any of the chargebacks flagged properly by Shopify?

Fifth, have you reviewed your payment gateway security settings? There you set options to enable things like CVV check and 3D secure. Different payment gateway offers different levels of security settings so check it if you are able to especially if you have Shopify payments enabled.

The final option, is to research into paying for a third party fraud application. Do you want to have Chargeback insurance? How about a much advance system to track and verify customers? You will need see what your budget based on how much monetary loss you have incurred in the last month, which will help you figure out which paid apps are best.

I'm happy to answer any questions regarding anything around fraud. I hope this helps you.

[Victor]

Hi @JerryBoc,

I am sorry to hear that this has been a problem for you as of late as I know that chargebacks can be frustrating and difficult to deal with. While there's no way to totally prevent chargebacks from happening, there are steps you can take to reduce this chance. 

@Beacon-Jason has provided some good advice on some of the steps you can take. Along with the Fraud Filter app and Flow (which is now available on the Shopify, Advanced, and Plus plans), you can use our in-built fraud analysis tool to evaluate orders that might be suspicious. The tool will indicate potential red flags on orders, such as multiple credit cards being used at checkout or the IP address used by the customer being in a different location to the shipping address. While these indicators can't guarantee if an order is fraudulent or not, they can help paint a picture to assist you with making a more informed decision on whether or not to fulfil an order.

Moreover, I'd also recommend checking out our Help Center doc on fraud prevention. This article discusses in more detail what you should be considering when you review an order for fraud and what you can do in certain situations.

[Buntiform]

In addition to what’s already been mentioned, you may also want to consider looking into 3rd party anti-fraud plugins like IPQualityScore.