Posted by Konstantinos Amvrazis on


What to do to minimise risk for a chargeback, how to check the truth about the way of payment used for the transaction, what steps to take, simple and easy way Fraudulent transactions and how to prevent chargeback. List of what we talk here: Verify the IP address. Call the phone number on the order. Search for the email address. Verify that the billing and shipping addresses match. Check if multiple orders, use different billing addresses, for the same shipping address. Review high value orders.. Install fraud prevention apps. Create workflows. Adjust your payment capture settings. Next steps. Verify the IP address. The IP address from which an order was placed is a good indicator of potential fraud. Consider whether any of the following are true: Your order capture system will have details about when and how the order was filed. Is the customer's IP address located in a different general area from where they claim to be? Is the IP address for a web hosting company? Is the IP address a proxy service IP address? If you've answered yes to any of the questions, then you should probably contact the customer to verify the authenticity of the order. You can use the free tools to quickly look up the geographical location, internet service provider (ISP), and other information about a specific IP address. Call the phone number on the order Calling the customer is always a good idea. You can do a google search with the phone number as well. Check if it appears in any postings about fraud or complains. Fraudulent customers often use invalid phone numbers. If someone answers the phone, then ask them some simple questions about their order and consider how they respond. Do they know the addresses, phone number, email, and name they used? Are they struggling to give you simple pieces of information? Search for the email address Searching for the email address on Google or another search engine can help you determine whether the email address was used in documented fraud attempts. You might also be able to find social media posts or other information that ties the customer to the email address. Verify that the billing and shipping addresses match A fraudster is likely going to provide a shipping address that does not match the billing address. You can use Google Maps to map out addresses and visualize the distance between them. If the distance between two addresses is significant (different continents, for example), then the order is fraudulent. Keep in mind that legitimate shoppers sending a gift or buying on behalf of someone else might have different addresses. Check if multiple orders use different billing addresses for the same shipping address Are there multiple orders with different billing addresses located in different states, with different names, but sharing the same shipping destination? This is usually a sign of fraudulent orders. Proceed carefully, and contact the customers using the information provided at checkout. Review high value orders If you receive an order which is substantially higher than normal, then you should verify the customer's identity. Install fraud prevention apps You can also install various apps to help reduce the chance of fulfilling fraudulent orders. This is for websites that have a lot of orders because the monthly fees are usually over 100$. Adjusting your Payment capture settings to capture payments manually. Using a manual payment method, like a bank deposit or cash on delivery (COD). Manually capturing payments adds an additional step in your order fulfillment workflow, but allows you greater control over capturing payment for specific orders. You can assess the potential cost of transaction fees and the time it adds to your fulfillment workflow to determine what is right for your business. Next steps Ultimately, it's up to you to decide if you're comfortable fulfilling an order that's marked as high risk. If you opt not to fulfill a high-risk order, then you can cancel and refund the order. NOTE, if you have maual capture of payments, which means that you have to accept a payment yourself after checking the credentials of the buyer, then if you need to cancel the order you can do that staright away without accepting payment for this order from the gateway. Its is called VOID and note that the customer cant file chargeback for a VOIDED order.


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