Is it Possible to Prevent Chargeback Fraud ?

[Kostya76]

I am considering starting a new line of business using Shopify that will be based around selling digital products / services worldwide with the lion's share of buyers located countries in Eastern Europe.

I kinda feel like this may be a terrible idea because of all the chargeback fraud that I will have to deal with on a daily basis.

I am planning to allow PayPal and credit card payments.

Anyone has some suggestions on how to protect myself from chargeback fraud? Is it even possible?

 

[Mi C]

You can install the FraudLabs Pro app in Shopify to screen all orders for potential frauds. It is free for 500 orders per month.

If you want to get the insurance of the chargeback, you can consider Signifyd but it costs 1-2% of your revenue.

 

[zionbar]

I am considering starting a new line of business using Shopify that will be based around selling digital products / services worldwide with the lion's share of buyers located countries in Eastern Europe.

I kinda feel like this may be a terrible idea because of all the chargeback fraud that I will have to deal with on a daily basis.

I am planning to allow PayPal and credit card payments.

Anyone has some suggestions on how to protect myself from chargeback fraud? Is it even possible?

don't worry about it as long as you tell customers what they buy
again, if you over-promise and under-deliver you will 100% get flooded by chargeback frauds. so just dont do that and be honest.

 

[MSRP]

If your market is local use wire transfer as payment method. If the audience target is worldwide you should take a charge back is a risk that you must have. Nobody have PayPal as payment method without a chargeback.

You can't avoid the chargeback but you can reduce it.

1. Use maxmind for fraud screening. I use their service almost 7 years and my chargeback rate under 1%/year.

2. Block 3rd party country that have high fraud risk to PayPal payment, use another payment method such as Cryptocoin.

3. Deliver your product just what you say in advertisement, so buyer don't feel to be cheated.

4. If chargeback happen. Fight back until your last breath.