How to handle high fraud alerts for Paypal payments?

Shopify Discussion
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I received High fraud alerts for one other while, the customer paid by Paypal, and Paypal accepted his payment. what should I do about the fulfillment of this order?

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Hi @afrartgallery

The problem you’re facing is one of customer verification. Shopify and other fraud tools give you signals of possibility of fraud depending on the correlation between signals about the customer, the order & their device.

For example, an order might be considered “risky” because the IP address of the customer is over 500 miles from their credit card’s billing address. However this could be explained by a customer making a purchase while they are travelling.

The same goes for when the shipping & billing addresses do not match, the order could just be a gift for a friend.

This is why I made Real ID, it’s an customer verification tool that securely captures & automatically verifies your customer’s ID. With the authentic ID image, we can automatically correlate the credit card billing address with the customer’s ID card.

There are other KYC (know your customer) methods, but if you’re selling high end goods or require age verification for purchase, we specialize in that.

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3

Hi @afrartgallery ,

June here from Shopify. Thanks so much for your question!

Is this only the one order that has received a High Fraud alert?

Ultimately the decision to fulfill any order, even one that has been marked as high risk, is up to you. It is generally our recommendation that you do not, however there are a few things to take into consideration to make your own informed decision:

  • You may wish to contact your customer to confirm their order.
  • When you visit your order page, which fraud analysis indicators in particular are registering as higher risk?
  • You can review our help document, Fraud prevention, for a full list of recommendations.

If you do decide that you’d feel more comfortable cancelling the order, you can select More actions > Cancel order at the top of your order page. When you’re asked how much you would like to refund, be sure to enter the entire amount paid in full.

Definitely give those resources a look and let me know how I can help!

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Thank you so much for your help

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Thank you so much for your help, it was helpful

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6

Hello,

In order to reduce the risk of chargebacks, you can always ask for customer ID or address verification, especially, for large orders. I invite you to try our app that we’ve recently launched https://apps.shopify.com/fraud-judge

On top of the 3months free trial we now have lifetime discounts available to the subscription plans. In return - if you like our service, we would appreciate it if you left a review on the App Store.

Here’s your 25% lifetime discount code: XKAGS7

Best Regards,

Martins

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I will tell you I had an order like this and canceled the order. It was done via ShopPay. But what most galls me is that Shopify is still going to charge me fees. Let that sink in. I stopped fraud but I still have to pay Shopify for the pleasure of keeping them from losing money. I have immediately removed ShopPay from my store channels and I suggest everyone else be really wary of using it.

I worked so hard to get the little bit of money I got. Pushing hard after losing my job this year, to get my little store to make money. To know it can be taken, not be the person trying to commit fraud, but the company that’s hosting my store just for “fees” is utterly reprehensible. Thinking about moving my store elsewhere. Really really thinking about it.

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