How to make sure i wont receive a charge back on order

Shopify Discussion
1

Hi. I run an auto parts store and have recently been struggling with fraudulent orders. On my third sale I received a “High risk of fraudulent order” Since I was new, I didn’t know what it was saying and the red flags to look for, so I shipped the product out. I was charged back for it and lost about $600 from that order. Now I know not to do that, but I recently got an order that was labeled “medium” on the scale of being fraudulent because the shipping and billing are just different addresses but all his info on it is the same. How do I make sure this doesn’t happen to me again and confirm the customers info isn’t fraudulent?

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Hi, @RvngRaceWorks

Thanks for posting!

Chargebacks are awful, and I can understand how you’re now worried about it happening again. Which on the bright side, means you will be diligent moving forward!

I recommend checking out our article here which goes over different ways to prevent a chargeback, or identity fraudulent orders. This includes calling the number on the order, verifying the IP address, and more. There is also chargeback insurance available outside of Shopify which could be worth considering!

I hope that helps!

3

Hey :waving_hand:t4:

Sorry to hear about that $600 loss - that really hurts! You’re not alone though, many stores face these issues.

Fraudulent orders typically show these patterns:

  • Shipping/billing address mismatches
  • High-value new orders
  • IP location different from shipping address
  • Multiple failed payment attempts

For that medium-risk order: Different shipping/billing addresses alone aren’t always bad (some people ship to work or as gifts), but it’s worth being extra careful with auto parts since it’s a high-fraud industry.

Try contacting the customer to just verify if he really ordered it. You can also send him an email to verify the shipping address.

You can protect yourself by setting up automated rules in Shopify Flow. Create workflows to:

  • Auto-cancel high-risk orders
  • Flag orders with IP/shipping country mismatch
  • Review orders above $X from new customers

Many people doing frauds like that, receiving the item, and then letting their banks initiate a chargeback. Which results in fees from Shopify + your lost revenue + lost inventory.

In case you want a ready-to-go solution, check out FraudFalcon - we’ve got some pre-configured rules.

Happy to help if you want to protect your store! :shield:

4

Hi,

I’m sorry to hear about your experience. Here are a few steps you can try to confirm whether the customer is legitimate:

  • Contact the customer – Reach out via phone or email to confirm the order details
  • Check for address mismatches – While different billing and shipping addresses aren’t always a red flag (e.g., gift orders), it is better to check for the address validity before it is too late.
  • Verify the email domain – Always check for disposable or unusual email domains which might indicate fraud.
  • Ask for additional verification – For higher-value orders, you can request a SMS verification to verify customer’s identity.

To save time and effort, consider using a free automated fraud prevention tool that evaluates risk factors like these for you. It can flag risky orders and provide insights like IP and address mismatches, high-risk emails, and unusual patterns.

Hope this helps.