Refund Fraud Prevention

[WAGYUMAN]

There have been many cases of people purchasing gift cards in our store and then having their chargeback cases opened after the gift cards have been used.
We would like to continue to sell gift cards after this.
Is there a method or app that would do an ID check only on the person who purchased the gift card?

[EcomSol · Accepted solution]

Shopify does not provide a built-in method for ID verification during the purchase of gift cards. However, you can try to mitigate chargeback cases by using a third-party app that offers ID verification, such as Jumio or Onfido. These apps use various methods to verify the identity of the customer, such as checking their government-issued ID or conducting a facial recognition check. By implementing such a solution, you may be able to reduce the risk of chargeback cases.

[WAGYUMAN]

Thank you

[TalShulman]

Hey, from my experience Shopify is known to be very effective at fraud detection, but no solution is fully fraud proof. The gift cards & digital goods segment is highly attractive to fraudsters, especially considering  high purchase volumes over the holiday season. I would recommend following both Riskified and Signifyd that specialize in this field, you see their recent posts on gift card fraud:  https://www.riskified.com/blog/gift-card-fraud-prevention/ & https://www.signifyd.com/blog/its-the-year-of-the-gift-card-for-fraudsters/. And generally if you are looking for a reliable provider for gift card and/or store credit management I know that rise.ai is a recommended solution for Shopify merchants.

[EcomSol]

Need more help you can contact me anytime 

Happy Selling❤️