shopify fraud protection is one of the most costly business-killing events for eCommerce stores, and if you’re not taking fraud protection seriously, you can end up losing customers.
Shopify has recently introduced a new fraud detection tool that helps merchants avoid chargebacks from fraudulent orders, according to TechCrunch. The technology analyzes incoming orders and decides whether or not they should be set as “protected.” If a fraudulent chargeback on a protected order occurs, Shopify reimburses the merchant.
The company said it’s launching the product in select markets, and will notify merchants when they’re eligible. While it’s not available to every store, the system should be a big help for smaller merchants who might not have the resources to manually review their orders for fraud.
ClearSale is a popular Shopify fraud detection and prevention app that works with the commerce network to help protect your store from fraud and customer abuse. It uses machine learning and advanced data analysis to identify suspicious activities.
The Ultimate Guide to Protecting Your Shopify Store from Fraud and Scams
FraudBlock is another popular fraud protection tool that automatically cancels ‘high risk’ orders. This eliminates the need for store admins to sort through orders to identify potential fraudulent ones, saving time and eliminating chargebacks.
While the company says it doesn’t cover chargebacks from banks, it does gather evidence for disputed transactions and submit it to the credit card companies. If the bank does decide to reverse charges, Shopify will try to resolve the dispute on behalf of the merchant.