Why does Shopify mark mismatched addresses as low risk orders?

[Christine71]

I have a chargeback on a low risk order. Trying to understand how shopify can rate an order as low risk when the  billing address doesn’t match the credit card registered address , shipping address 400 miles away from billing address. High risk internet connection (web proxy used). The only comment I got from Shopify customer services is the algorithms are still learning. We pay 2.5% to 2.8% of all card transactions yet they won’t take any responsibility when they get things wrong. Has anyone challenged shopify on this and been successful?\\

[Shay]

Hi @Christine71 

Thank you for sharing your feedback here in our community forums. I understand that you received an order that was flagged as a low risk and feel that the order's fraud analysis was incorrect in this case. And you have since received a chargeback on this order. 

Shopify's Fraud Analysis tool provided in the order details is not a be-all-end-all system, and was never designed to be. It uses a range of machine algorithms to provide valuable insight into the order details and assess risk based on a variety of factors. The decision to fulfill any order is entirely up to the merchant and we always encourage you to review every order before you fulfill it. 

Chargebacks can be initiated for a variety of different reasons and not all of them are fraudulent in nature. If a customer feels they aren't able to resolve an order issue with the merchant, didn't receive their item, or received a damaged item, they may consider to open a chargeback. These elements are not something that can be discovered through a fraud analysis. 

There are many tools you can use to help review an orders level of risk. If you are not satisfied with what our built in tool can offer then I recommend looking at some third party apps or services to help mitigate your order risk factors. 

[Ben31]

@Shay OK but an address check is one of the most basic checks - right? How can a basic built-in tool not flag an address mismatch?

Also, the policy of charging a percentage on third-party payment providers is hugely frustrating because our bank provides an amazing fraud service - we can actually talk to a human for assessment and help. But, if we use our bank, Shopify charges an extra fee on every transaction - right?

Surely you guys can see that if you don’t provide basic services like an address check, charging for payment providers that do provide checks, feels like a cynical money-grab?

Please let me know if I’m missing something basic here!

Cheers, Ben