How to handle a medium fraud analysis alert on my online orders?

thebluehound
Explorer
52 0 10

Hi,  I received an order that was tagged with a medium fraud analysis.  Before I noticed the Fraud Analysis, I noticed common threads with a few other orders (our website is low volume so I am aware of all of the orders and their details).

1. Last month I rec'd an order from a person, shipping to another person in Canada with billing in a town in Mexico.  The shipping address had a name of A Xxxxx and the billing was B Xxxxx.  Both different from the person ordering.  It came with a Low Fraud Analysis and there hasn't been a chargeback after a month.

2. Last week I rec'd an order from a person and it was shipping to a town in Mexico.  What I didn't notice was that it was the same town as #1's billing address.  I didn't really pay attention as I notice more the ship to address than the billing address.  The package was shipped last week.  It also came with a Low Fraud Analysis.

3. Today I receive an order from a person with shipping/billing the same as #1's billing address in Mexico but the name was C Xxxxx (all with the same family name but different first names).  And the same town as #2.  This was the first of the 3 to come with a medium Fraud Analysis.  I refunded the order.

 

I understand that maybe different family members were ordering, but I doubt it.  The fact the order 2 was shipping to the same town in Mexico is rather suspect (even though the name was completely different).

 

If a chargeback were to happen, how long would it take to receive (or is it open-ended).  I'm really not sure how contacting the person that provided me with all of the information helps.  I mean, they just have to say it's them. 

If a chargeback happens, do I have any recourse?  I do ship FedEx or UPS so it's all trackable.  Does this sound like a scam?  Thanks

Replies 3 (3)

Michael-Thomas
Shopify Partner
17 1 2

So I will list some helpful tips below you can conisder adopting when it comes to trying avoid chargebacks. 

 

But when it comes to chargebacks, they can come at anytime really. They can be submitted within days or months, depends on the banks policy. But it's good you noticed this because you can use this information to fight the chargeback. If you can prove your case to the bank, they will rule in your favor. Be sure to have as much info as possible. Tracking numbers are great if you have them.

 

Some tips to help fight/prevent chargebacks.

1: Install Shopify Fraud filter app and create a rule for that location to send you a warning about an order, or if you don't wanna risk it, you can choose to cancel. 

2: It is always worth contacting the customer requesting for ID / proof of address as this is evidence you can submit on a chargeback to help fight it if it does come through. 

3: Make sure all your policies are written out well and simply. Banks have to look at these when it comes to chargebacks. Here is an example to help. 

4: You can create some Shopify flows for future orders to place the order on hold till you investigate if it comes in as high risk. Here is a site showing how to do this.

 

If I think of anything else, I will update my reply, but hope this helps in someway. 

 

Appreciate it if you Like and Mark Solution. Thanks!


Discover my socials on Linktree.


Feel free to send a tip or buy me a Coffee

thebluehound
Explorer
52 0 10

Thanks, I'll look into these options.  I've had a Shopify shop for years and not had a problem yet but this one just looked to 'coincidental'.  The asking for ID thing seems strange to me (just putting my consumer hat on for a second).  What would be 'proof of address"?

Michael-Thomas
Shopify Partner
17 1 2

So I will list some helpful tips below you can conisder adopting when it comes to trying avoid chargebacks. 

 

But when it comes to chargebacks, they can come at anytime really. They can be submitted within days or months, depends on the banks policy. It's important to gather evidence like you have because you can share it with the bank and help your case if they do submit them.

 

1: Install Shopify Fraud filter app and create a rule for that location to send you a warning about an order, or if you don't wanna risk it, you can choose to cancel. 

2: It is always worth contacting the customer requesting for ID / proof of address as this is evidence you can submit on a chargeback to help fight it if it does come through. 

3: Make sure all your policies are written out well and simply. Banks have to look at these when it comes to chargebacks. Here is an example to help. 

4: You can create some Shopify flows for future orders to place the order on hold till you investigate if it comes in as high risk. Here is a site showing how to do this.

 

If I think of anything else that can help, I will add it to my reply. 

 

Appreciate it if you Like and Mark Solution. Thanks!


Discover my socials on Linktree.


Feel free to send a tip or buy me a Coffee