As ecommerce continues to grow, the threat of fraud is becoming an increasingly pressing issue for online retailers. According to the "State of Fraud 2023" study from Signifyd, the total cost of ecommerce fraud is expected to reach $206.8 billion in 2023. This poses significant challenges for online retailers, as every $100 in fraudulent orders results in $207 in tangible losses, taking into account not just the value of the goods shipped, but also the operational, fulfillment, and marketing costs involved.
In this support article, we’ll provide you with practical tips on…
- Mitigating the risk of fraud for your Shopify store and Tapcart sales channel
- How to avoid capturing high-risk payments from being placed in your store
- Enabling a fraud filter as an additional protective measure for your store
How to Mitigate Risk
Shopify’s risk workflows can help you manage high-risk orders. For example, when setting up a flow you can enable the ‘Order risk analyzed’ trigger to check the risk level of an order. This trigger leverages the results from Shopify’s Risk Analysis.
Steps to Avoid High-Risk Payments
- Log in to your Shopify Dashboard
- Set up manual payment capture, this will allow you to preview orders being placed on Shopify and scan through any potential fraud risks that occur or take place. By manually capturing payments, you will be able to prevent payments from fraudulent accounts from going through. This process can be automated by using Shopify Flows (Available for Shopify Advanced and Plus users).
- Install the Shopify Flow app
- Open the ‘Workflow’ app located on your left-side navigation
- Tap on ‘Create Workflow’ and select ‘Browse Templates’
- Choose ‘Risk’ and navigate to ‘Capture payment if order is not high fraud risk’
- Important Note: This flow will prevent you from capturing payment if the order is a high fraud risk, this will prevent you from receiving any transaction fees that are caused when having to submit a refund.
- Once you open the flow, you’ll be prompted to ‘Set up manual payment capture’
- Important Note: Orders that are not set to high risk will still be captured automatically, this flow will only affect your orders that are set to high risk.
- Click ‘Turn on automation’ and ‘Ok’
- Now you will see the created flow, select ‘Save’ and you’re all set!
Enable a Fraud Filter
To further strengthen your defense against fraud and prevent chargebacks, you can leverage Shopify’s free Fraud Filter app. This user-friendly tool allows you to create simple rule-based filters to flag suspicious orders or even block them altogether. When an order matches a filter you’ve set up, Fraud Filter will alert you automatically or cancel it for you, depending on the action you’ve chosen. To learn more or enable Fraud Filter you can access this link here.
As a third-party sales channel, Tapcart does not capture payments and does not process any transactions. Tapcart utilizes Shopify APIs to generate checkouts and relies on the payment method of the online store to manage payment capture, acceptance, and/or rejections of purchases being placed.