I run a drop shipping store and have recently received two chargebacks due to fraud on orders that Shopify labeled as low risk. The first was closed in the customers favor and I expect the second to go the same way. I will be losing around $1500 dollars at the end of this, and am looking for advice since I can no longer trust Shopify’s automated screening. I know it is my fault in the end, but this is the first time scammers have managed to fly under the radar on my store. The first red flag is that both these orders had different shipping and billing addresses, so that is something I will look out for. Is there anything else I can implement to protect myself such as insurance? My store sells high priced items and I do not want this to happen again. Thank you.
AI-generated summary
A drop shipping merchant reports two fraudulent chargebacks on orders flagged as low risk by Shopify; one was already decided for the cardholder, and the second is expected to be, totaling about $1,500 in losses. The merchant notes a red flag in both orders: different billing and shipping addresses, and asks about added protections (including insurance) for high‑ticket items.
Recommended actions focus on strengthening fraud screening and adding protection: review Shopify’s fraud analysis guidance to improve manual review, and consider a third‑party fraud/chargeback protection app (e.g., Signifyd) that provides merchant protection against chargebacks. For app support, contact the developer directly.
Status: No resolution yet. Immediate next steps are to tighten order review, especially mismatched address orders, and evaluate third‑party protection solutions. Open questions remain about insurance options and best practices for high‑value orders.
Additional context: The responder requests more details about the business and points to general store resources (including marketing planning), though these are ancillary to the fraud-prevention issue.
Hey, @airric .
Thanks for reaching out and bringing this to our attention.
Sorry to hear that you’ve received a couple of chargebacks from low-risk orders. If you’d like to learn more about screening the orders, then I’d recommend taking a look at our guide on fraud analysis. However, if you’re looking for something that offers merchant protection against chargebacks, then you can take a look at something like Signifyd. Should you need to get help with a third-party app, then the app developer is always available to assist you. Simply reach out to them using the contact information found at the bottom of their app’s page.
That being said, I’d love to hear more about your business and share some resources to help you get started. What types of products are you selling? Do you have a marketing plan prepared for your store?