I have just had a new customer, that has placed 10 orders in two days on my website. The fraud analysis, shows that it is Low, but I have noticed the customer has used three different cards that are not registered to the delivery address and that the orders are being placed from Lithuania. I called the customer and they said the orders are going to be shipped by themselves to Lithuania.
I’m just worried that if we get charge backs, do we loose out on our products as well as the money from the sales. Can someone help with this?
Hi there, @Remesh . Thanks for taking the time to reach out to the Shopify Community today with your questions around this customer, their orders, and chargebacks. My name is Imogen. It’s good to meet you!
Chargebacks are an unfortunately reality for many online retailers and small-businesses. We actually have a document here that goes over chargebacks, and how you can protect yourself from the risk of receiving them.
If you ship an order to a customer, and a customer were to issue a chargeback with their bank once they received the product, then you would be out the funds for the purchase, and the product, unless the customer decide to return the product to you. It is for reasons like this that whenever you’re feeling hesitant about fulfilling an order, that you do your due diligence to ensure it’s legitimacy. You made a good call by calling the customer to verify things!
When it comes down to you, you have the final say on if you fulfill this order or not as the person managing the business. If you’re worried about the risk associated with fulfilling these orders, then you can let your customer know that you won’t be fulfilling them, and you’ll be refunding their purchases. You can provide justification to the customer in whatever way you would like, by using the information Shopify provides you via our fraud tools, or you can use whatever information you like.
My recommendation here would be to determine if you’d like to fulfill these orders or not, and if you’re worried about the risks, then letting the customer know that you’ll be providing them a refund. If you do decide to fulfill their orders, then make sure you have documented the steps you’ve taken to verify the legitimacy of the order, as any information you collect can be provided to Shopify, so we can present it to the customer’s bank in the situation that they choose to initiate a chargeback.
I hope you find this information helpful! Let me know if you have any additional questions!