How can I minimize fraud and chargebacks in my new online store?

Payments + Shipping & Fulfilment
1

Hi All. I am new to Shopify and nearing completion of my store. One concern I have is how to minimise fraud and chargebacks. Any safeguards extra to take? I have looked at the apps but it’s confusing. Anyone with ideas or suggestions greatly appreciated. I will be U.K. based only for now.

2

Hi,

congratulations on your new store, to take precautions and minimize your chances of having chargeback fraud, ensure that;

  1. Use strong credit card verification methods
  2. Be aware of unusual orders
  3. Confirm all orders
  4. Remind customers of recurring payments
  5. Use shipment tracking and require signature confirmation
  6. Use clear transaction descriptions
  7. Clearly define your return policy…
1 Like
3

Hey @Markssxx ,

Thank you for reaching out to the Community! I’m happy to provide some tips to help to minimize the occurrence of fraud from populating on the shop, to get this resolved. I recommend checking out our Fraud Prevention documentation, as it covers various resources that can be used to help reduce the number of fraudulent orders. This includes:

  • Verifying IP Addresses
  • Search Email Addresses
  • Verify the Billing and Shipping Address Match
  • Review High Value Orders
  • Install Fraud Prevention Apps

While Shopify does have a built-in Fraud Analysis feature that utilizes machine learnt algorithms to detect the risk of fraud, looking to the Shopify App Store to add an additional layer of support is recommended. I’ve gone ahead and suggested a few below you can check out:

Please let me know if you have any other questions or concerns!

1 Like
4

Hi,

You may use the default fraud analysis feature in Shopify. Or, you may also install a third-party fraud prevention app for an additional security layer to minimize fraud and chargebacks.

You may try this fraud prevention app. It helps to screen all your orders by performing a comprehensive fraud validation on many elements like IP validation, credit card validation and so on. Lastly, it is free and easy to install.

Hope it helps.

5

Thank you that’s very helpful.

6

thanks I will instal this app. This was really helpful.

1 Like
7

We have 2 fraudulent charges and shopify could care less. Funds retracted even though clients have the product