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How Do I Avoid High Risk Orders on Shopify?

Last updated on October 1, 2022 @ 3:51 pm

As an ecommerce business, it’s important to know how to avoid high risk orders on Shopify. By understanding what makes an order high risk, you can take steps to reduce the chances of having your payment gateway decline or cancel an order. Here are four tips:

1. Know your customer

The first step to avoiding high risk orders is to know your customer. If you’re selling products or services online, you should have a clear understanding of who your Target market is.

Knowing your Target market will help you identify potential red flags that could indicate an order is high risk. For example, if you’re selling luxury goods and your Target market is wealthy individuals, an order from a new customer with a shipping address in a developing country could be considered high risk.

2. Use AVS and CVV checks

Another way to avoid high risk orders is to use Address Verification Service (AVS) and Card Verification Value (CVV) checks. AVS compares the billing address provided by the customer with the address on file with the credit card issuer.

CVV checks compare the CVV code submitted by the customer with the code on file with the credit card issuer. These checks can help confirm that the person placing the order is actually the cardholder.

PRO TIP: If you are thinking about starting a Shopify store, or are in the process of setting one up, it’s important to be aware of the potential risks involved in selling online. One of the biggest risks is chargebacks, which occur when a customer disputes a charge with their credit card company. This can happen for a variety of reasons, including if they didn’t receive the product they ordered, if the product was damaged, or if they feel like they were charged too much. If you get a high number of chargebacks, your account could be suspended or even canceled.

To avoid this, it’s important to do your research and choose a niche that is not likely to result in a lot of chargebacks. You should also make sure that you have clear policies in place regarding returns and refunds, and that your prices are fair. Finally, always ship products promptly and provide excellent customer service to avoid any unhappy customers.

3. Review orders for suspicious activity

In addition to using AVS and CVV checks, you should also review orders for suspicious activity. This includes looking for things like multiple orders placed within a short period of time, large orders placed with a new customer, or orders placed using a stolen credit card. If something about an order raises a red flag, you can contact the customer to verify their identity and confirm that they intended to place the order.

4. Use a fraud prevention tool

Finally, one of the best ways to avoid high risk orders is to use a fraud prevention tool like Shopify Payments’ Fraud Protection. Fraud Protection uses machine learning to automatically flag orders that are likely to be fraudulent. This allows you to review these orders and take action as needed.

How Do I Avoid High Risk Orders on Shopify?

By following these four tips, you can avoid high risk orders on Shopify: knowing your customer, using AVS and CVV checks, reviewing orders for suspicious activity, and using a fraud prevention tool.


Dale Leydon

Dale Leydon

Sysadmin turned Javascript developer. Owner of 20+ apps graveyard, and a couple of successful ones.