The banks do a good job asking for proof to discourage fraud and spend a ton doing so. But, the customer in this case is their concern. As long as the claim seems legitimate and doesn’t raise any major red flags, the bank will process. You are correct that Shopify doesn’t do a great job communicating to the card company. But the issue still stands that the opportunity exists for a fraudster to attempt an exploit.
I would challenge your claim that we are not solving problems. If you have less of these orders then you have less claims. You cited your methodology of not allowing orders over $150 for new customers and only shipping to billing addresses. Those are all ways of preventing the issue from occurring. But I would consider those solutions akin to a blunt instrument. CAC is extremely high, and repurchase rates across D2C products is very low compared to major retailers. So if you think you need to get a lot of juice out of the squeeze then you run the risk of excluding legitimate customers that might be ordering a product for a party, or some other event where it’s very normal to order a lot at once. All stores are also different and some sell items that are $600-$800 per item where a person can order two and still be very much in the range of normal, while exposing the merchant to a huge chargeback risk. This cornucopia of issues is why we developed the product to scan addresses based on a plethora of data points to identify risky orders and stop them before they can turn into a chargeback claim.That said, we are in the business of problem solving.
As I said in my previous post, we built this app because we were struggling w/ the same issue on our stores. So far, it’s been very helpful to us, and I wanted to share that. But if you think there are other features and products we should build, I would love to have a conversation with you. Your knowledge of this topic is in the top 1% and it would be great to see if we can build something that solves your problems as well