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Reducing Chargebacks in Shopify

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  • Reducing Chargebacks in Shopify

    We've received a handful of chargebacks for "FRAUDULENT" charges. Shopify has a built in fraud risk scale but did not pick up on any of the ones we've been charged back on.

    There are a few chargeback add-ons but the highest rated one is $500 a month or 1% of your sales, whichever is greater and I dont think we need to pay that just yet.

    It seems to me that any order where the IP location doesn't match the shipping location should be flagged for deeper scrutiny, as well as any one where the shipping address and billing address are in two different states. At least these are the common factors in our current chargebacks.

    Curious if anyone else has any best practices or solutions to reduce orders made with fraudulent credit cards.


  • #2
    Yep, those 2 are the easiest to spot although fraudsters can very easily use nearby proxies to match CC billing details. Shipping and billing mis-match is a better indicator to go off, as most won't bother going through the process of calling up banks to change addresses etc. I suggest you call up and/or ask for some sort of proof (eg. physical picture of an ID and CC) Note that these can easily be faked but most won't bother picking up the phone (let alone using a legitimate phone number) and sending in proof. Using Paypal or some merchant that requires VBV verification also helps mitigate risk of fraud.


    • #3
      Try Signifyd app . its good and not costly (depends on which plan you select)