For any online seller, a chargeback or fraudulent order is nothing less than a nightmare. Once the number of chargebacks is getting more excessive, you will have to spend so much time on chargeback responses, customer disputes, and checking high-risk orders.
Therefore, the prevention of chargebacks and fraud should be a priority.
Luckily, Shopify will support you to do so. Shopify will offer all online sellers Shopify Fraud Protect, a new program to safeguard businesses from e-commerce fraud.
Is Shopify Fraud Protect the best option for your company, though?
In today’s post, we’ll talk about Shopify Fraud Protect and decide whether it is the best way to protect your business against fraud.
For both buyers and sellers on any online platform like Shopify, there are always numerous concerns such as “Is Shopify safe?”, “Can you get scammed on Shopify?”, “Does Shopify have buyer protection?” and much more.
In fact, Shopify is considered a secure hosting platform for online businesses. The greatest level of security is in place to protect its customer data, and essential precautions are taken to safeguard vendor accounts.
As we mentioned above, Shopify has launched a new service called Shopify Fraud Protect in order to protect online sellers.
This fraud protection system from Shopify analyses and precisely detects fraudulent orders using cutting-edge algorithms.
Online Shopify Payments orders are evaluated and identified as “protected” or “not protected” when Fraud Protect is activated.
With Shopify Fraud Protect, only a small percentage of orders face a very high risk of fraud.
In the event that the protected order is subsequently the subject of a chargeback, Shopify reimburses the merchant for the chargeback and handles the chargeback dispute procedure.
Shopify Fraud Protect is completely optimized for the sales of the merchant’s store. Merchants pay a small fee for every order protected after registering. In the event of a chargeback, Shopify pays the sum and the merchant is released from liability.
Shopify has launched a new service called Shopify Fraud Protect
Only a few U.S. merchants are now eligible to participate in Fraud Protect, but Shopify intends to expand the product’s coverage in the future.
To see if you’re currently eligible for Fraud Protect, go to your Shopify admin page, select Settings, and then Payment providers. Your company is eligible for Fraud Protect if you find the Fraud Protect for Shopify Payments section on the Payment providers page.
This may be a very important question, but unfortunately, the answer is NO!
Regardless of whether you sell through your Shopify store or on social media platforms, Shopify Protect will pay the expenses of any fraud-based chargebacks on eligible Shop Pay transactions. However, this program DOES NOT COVER chargebacks made for the following reasons:
The process of defending your company against chargeback fraud can be costly and time-consuming. Once it happens to you, it can be a nightmare even when you believe you have taken all reasonable precautions to prevent fraud.
Don’t worry, we’ve created a post to give you a full guide on how to fight with chargeback here.
Regrettably, fraud rates keep rising. According to LexisNexis, false fraud detection costs businesses up to $118 billion annually.
Without further delay, merchants must be able to safeguard their revenue from pricey chargebacks and avoid pricey false rejects.
Shopify Fraud Protect is not really an optimum solution
Not just registering for Shopify Fraud Protect you’ll need to look at other solutions to enhance the protection of your seller account.
Thankfully for merchants, Synctrack will support you in integrating Shopify with PayPal to fight fraud or support you in avoiding chargebacks from dissatisfied customers.
Contact us right away for any additional information about Synctrack!
Running an eCommerce business requires being aware of the possibility of fraud. Besides Shopify Fraud Protect, don’t hesitate to look at other built-in tools to ensure that your seller’s account is fully protected.
