When I receive a Fraudulent order and cancel it I’m still hit with credit card fees. Is there any way to avoid this?
Typically, in store, we can void a transaction before it’s settled. This way doesn’t hit us with credit card fees. However, with Shopify, I can cancel and order immediately and still get hit with CC fees.
Example, this morning I had a 499 order come through that was fraud. I cancelled the order in 30 minutes and I’m refunded $480.
There has to be a better way?
Hi @motorangutan ,
You can do the same through online orders as well by voiding a transaction before the payment is settled.
To do this, you need to head into Shopify Payment settings and select “Manual payment capture”. as seen in the screenshot below.
That way when you void an order, you will not incur fees since the payment was not settled into your account. The down side to this is that you will have to manually capture every payment manually.
If you want to automate the payment capture system then you need a third party app like “Beacon” that will automatically hold/void orders that have a risk threshold while automatically capturing payments for orders with low risk levels.
I hope this helps!
There is a better way and automating it does not require paying for a 3rd party app thanks to the Shopify built app called Flow: https://apps.shopify.com/flow
Shopify keeping the processing fee was something we became aware of after experiencing a few fraudulent orders ourselves.
The basic solution, as stated by Beacon-Jason in their reply, is to change your payment authorization to “Manual Capture”. This is found in your settings section when using an Admin account with proper permissions. You should have 30 days to capture payments manually and there should be an email notification setting to warn you if a payment capture date is expiring soon.
To automate payment captures for orders deemed a “Low” fraud risk, you setup the automation in the Shopify Flow app. Learning to use Flow is fairly easy. You can also use Flow to setup orders with “High” fraud risk to automatically be cancelled. This would leave “Medium” fraud risk orders for you to manually review, contact buyers, and decide whether to cancel or capture payment.
Personally, we are not automatically capturing or cancelling “high” or “medium” risk orders because we have had legitimate customers who use a VPN which can trigger the “high” risk analysis and we don’t want to miss out on those legit sales–we just need to be extra careful vetting those customers and tolerate the added risk.
