Running a Shopify store is exciting, but let’s face it – fraud orders and chargebacks can quickly turn that excitement into frustration. The good news? With the right tools and strategies, you can protect your business from these issues and focus on growing your store. Here’s how to avoid fraudulent orders and chargebacks while keeping things simple and stress-free.
1. Use a Fraud Control App
Fraud detection apps are lifesavers for Shopify store owners. They scan orders for suspicious activity and flag anything that looks fishy. Some popular apps you can try are FraudLabs Pro, Signifyd, or Shopify’s built-in Fraud Protect (available for eligible stores).
- What to Look For in an App?
- Risk scoring (e.g., low, medium, high risk).
- Automatic cancellation of high-risk orders.
- IP address tracking and region blocking.
- Tools for email or identity verification.
These apps save you from manually combing through orders and help stop fraud before it causes damage.
2. Automate with Shopify Flows
If you’re using Shopify Plus, the Shopify Flow feature lets you create automated workflows to manage suspicious orders. For example:
- Automatically cancel orders flagged as high risk.
- Notify you via email when an order needs review.
- Add tags like “high-risk” to orders or customers for future reference.
With Shopify Flow, you’re not just playing defense – you’re staying a step ahead of fraudsters!
3. Offer Signature-on-Delivery Shipping
One of the easiest ways to avoid disputes over non-delivery claims is to require a signature upon delivery. This ensures the package is handed directly to the buyer.
- How to Set It Up:
- Partner with trusted carriers like DHL, UPS, or FedEx that offer signature-on-delivery services.
- Clearly state on your product pages and during checkout that a signature is required.
- Save proof of delivery for your records in case of a dispute.
This simple step adds an extra layer of protection and gives your customers peace of mind.
4. Switch to Manual Payment Capture
By using Shopify’s manual payment capture setting, you can review orders before processing payments. This is especially useful for high-ticket items or international orders.
- How to Enable Manual Payment Capture:
- Go to Settings > Payments > Payment Capture and choose “Manually capture payment.”
- Review flagged orders before capturing the payment.
This approach might take a little extra time, but it’s worth it to prevent potential losses.
5. Extra Tips to Stay Safe
a. Enable CVV and AVS Matching
Ensure the credit card’s security code (CVV) and billing address (AVS) match the details provided by the customer. Most payment gateways offer these features.
b. Block High-Risk Regions
If you notice a pattern of fraud from certain regions, block transactions from those areas or add extra verification steps.
c. Secure Your Checkout
Make sure your checkout process is protected with SSL certificates and complies with PCI DSS standards.
d. Strong Return and Refund Policies
Having clear and transparent policies posted on your website can discourage fraudsters and reduce misunderstandings with genuine customers.
6. Be Ready for Chargebacks
Even with precautions, chargebacks happen. Here’s how to handle them:
- Keep Records: Save every order detail, including invoices, shipping labels, and proof of delivery.
- Respond Quickly: When a chargeback occurs, provide the necessary evidence promptly to your payment processor.
- Communicate with Customers: Sometimes, a quick email or call can resolve a misunderstanding and prevent a chargeback.
Wrapping Up
Fraudulent orders and chargebacks might feel like unavoidable parts of running an online store, but with the right tools, you can minimize risks and stay ahead of the game. Use fraud detection apps, automate workflows, require signatures on delivery, and review high-risk orders manually. These small changes can save you a lot of time, stress, and money in the long run.
By staying proactive, you’re not just protecting your Shopify store – you’re setting it up for long-term success. Got any other tips or experiences to share? We’d love to hear them in the comments below!
