I’m currently going through an issue with a customer reporting a fraud- chargeback on 2 orders that were both placed on Instagram (Facebook).
I’m so confused and hope I win because if not then the customer will have our products which show delivered and their money of $144.02. Not only that we will get charged a fee of $15 per order. So in this case a fee of $30.
So we are going to have to eat product loss, money, and charged a fee and that is too much!
I have talked with Facebook and they stated that they see the order but all info was sent to Shopify.
Under fraud Analysis on both of those orders, it read Green that it was low.
That is the only reason why we fulfilled both orders.
I already submitted info for both orders on Shopify and now waiting on the results but they did take the money out of our account including the fees.
Now we have another Instagram order and are very hesitant to fulfill it. Order Analysis shows green but looking at the breakdown both the CVV and the IP are not available
I can definitely understand your concern in this moment about fulfilling additional Facebook/IG orders on your store after you’ve been hit with a chargeback for a similar case.
We always recommend trusting your gut in these situations. If you think it’s fishy, don’t fulfill the order or at least contact the customer first to confirm their identity. There is absolutely nothing wrong with reaching out to a customer, letting them know that you’ve had a few fraudulent orders come in so you have to confirm their identity before fulfilling the order for them. Ask them for the credit card (covering all the numbers but the last 4 digits) and a picture of their id. Just like you would in a retail store.
I would also recommend checking the security options you have enabled for your payment gateways. If you are using Shopify Payments, I would ensure that you have both AVS Postal Code verification and CVV verification enabled.
Also, if you are worried that your business is being targeted by these types of scams I would enable payment capture on your store. This allows the charge for the order to be authorized by the customer’s bank but not fulfilled until the order is reviewed. There is a timeline before the order is cancelled (usually 7-14 days) but this can help you with not having to deal with gateway processing fees if you choose to refund any orders.
But you are passing orders through and they say “Low Fraud” and on these orders the payment information is not clear as we have to ship before payment.
Thanks for sharing your experience here as well. It sounds like you are using Cash on Delivery, is that correct?
With COD, since the payment info is not collected at the checkout a lot of the information that would be used by the fraud analysis tool is no longer available. Information related to the customer’s address and IP address can be assessed, but other data connected to their financial cards will not be reviewed.
I would encourage you to look for a supported integrated payment gateway for your business so that customers can pay up front for their orders before shipping them out. This is the best and most secure way for both you and the customer.