So I just learned that if you have a “customer” make a purchase on your website that is a high risk of fraud and you cancel the order and refund the charge you still have to pay the fees associated with that order and they will not be refunded to you.
I’m told this change was made months ago, anyone else not aware of this? But “Shopify cares about merchant success”… how can you care about merchant success and turn around and steal money from them?
yes its true.
the only way i found around fraud is DO NOT use shopify payments.
Use PayPal instead.
If PayPal processes it, and it turns out to be fraud, you are covered under seller protection (just make sure you ship to the PayPal verified address).
I really wish shopify would fix their payments, i would love to use it again, but there is just too much fraud, and we end up paying for it.
Right now, its just not worth it.
It really depends on the type of fraud case you are experiencing. Yes, Paypal does have seller protection, but it does not cover all areas. despite this being said, I do agree that Paypal offers better seller protection than other payment gateways, but you are also limiting your store’s scalability issue. In order to grow, you will need to expand your payment options, which therefore you must look into solving other issues like additional fraud checks.
I guess you are unaware of how rampant fraud orders are.
i am deathly afraid of scaling with shopify payments! That would mean there would be an exponential number of fraud orders.
not only is fraud rampant, we would go broke paying the unrefunded fees you lose when you cancel the fraud order.
trust me, i REALLY REALLY want to use shopify payments, but as soon as i turn it on, i start getting fraud orders.
Paypal is WAY better, in 15 years of using them on ebay and other sites, i have only not gotten paid for a fraudulent order once.
VERY VERY few fraudulent orders are even allowed through PayPal, their fraud detections is miles ahead of shopify’s
As long as you make sure you are shipping to the confirmed address, you are covered.
And if you cancel an order? you dont have to pay for it! (although I understand that is suppose to change in the future)
My job is to deal with fraud orders on an everyday basis, so I am well aware of the situations.
If you don’t mind, I would love to help you on a personal basis just to see the type of fraud you had experienced in the past and maybe I can share with you some of my own personal insights.
If you are interested in chatting privately send me a DM.
its easy,
We get charged the non refundable fees for the transaction.
I know you are going to say we can “pre-auth” the order, but i dont pay shopify so i can babysit it, its suppose to make our life easier.
You need to have a way to not process an order that is fraudulent, without charging, determining its fraudulent before the order goes.
We also use all the fraud rule apps, including making sure addresses match etc.. but they know what they are doing to get the charge through.
Since using PayPal, problem solved.
I’m glad that Paypal is working well for you and if you are happy the way it’s working then that’s great.
One thing to do note, that I know for a fact that Shopify is well aware of the issue. They have a basic fraud analysis and even chargeback protections. But Fraud behavior in itself changes every minute so it’s quite a challenge to balance between not lose money from chargebacks and keeping merchants happy.
And the fee per purchase… This is very bad…