Shopify offers a comprehensive set of features and tools designed to help merchants minimize the risk of fraudulent transactions and the impact of fraud on their businesses. Understanding and utilizing these features can significantly enhance your store's security and protect your revenue. Here's a closer look at the fraud prevention tools available on Shopify:
Fraud Analysis
Availability: Available to stores using Shopify Payments and most third-party payment processors on Shopify, Advanced Shopify, or Shopify Plus plans.
Description: Fraud analysis provides insights and risk levels for each order, helping merchants make informed decisions about which orders to fulfill.
Shopify Protect
Availability: Exclusive to US stores using Shop Pay.
Description: Shopify Protect offers protection against fraudulent and unrecognized chargebacks for eligible orders, providing an extra layer of security for merchants.
Shopify Flow
Availability: Available to merchants on the Shopify, Advanced Shopify, or Shopify Plus plans, and those using the Shopify Fulfillment Network (SFN).
Description: With Shopify Flow, merchants can automate workflows to set rules, create allow lists, and block lists, managing which orders are accepted by their store.
Dynamic 3DS
Availability: Available to stores using Shopify Payments.
Description: Implements 3D Secure authentication on all payments processed through Shopify Payments, enhancing the security of transactions and helping to prevent fraudulent chargebacks.
Card Testing Protection
Availability: Integrated with Shopify Payments.
Description: Helps to prevent credit card fraud at the checkout stage by identifying and blocking suspicious card testing activities.
Dispute Management
Availability: For stores utilizing Shopify Payments.
Description: Automates the dispute management process, allowing merchants to focus more on their business operations while minimizing the impact of chargebacks.
Proxy Detection
Availability: Exclusive to stores using Shopify Payments.
Description: Flags customers using proxy services or IP addresses that may indicate fraudulent activity.
Authorization Rate Optimization
Availability: Exclusive to Shopify Plus merchants using Shopify Payments and the ShopifyQL Notebooks app.
Description: Leverages machine learning to optimize transaction authorization rates, increasing accepted transactions and reducing declines by improving the information provided to payment processors.
Payment Capture Control
Availability: For stores not using Shopify Payments.
Description: Allows merchants to control which orders are automatically captured, helping to avoid third-party transaction fees on high-risk orders.
Additional Resources
For more in-depth fraud prevention and monitoring, Shopify recommends exploring the Shopify App Store, where you can find a wide range of fraud prevention and protection apps designed to fit various business needs.
By effectively leveraging these tools and features, Shopify merchants can significantly reduce their exposure to fraud, safeguard their operations, and ensure a secure shopping experience for their customers.