Shopify launches new service to protect merchants from chargebacks

By Dan Wilson October 11, 2018 - 12:20 pm

Ecommerce shopfront provider Shopify is bolstering the fraud protection it offers merchants with the launch of Fraud Protect. It is now available to a small group of merchants based in the United States but a further roll out is expected in the coming months. Merchants who are eligible will receive an email, as well as a notification within Shopify.

When using Fraud Protect a merchant gets full protection from fraudulent chargebacks on protected orders and can streamline their order fulfillment process. Fraud Protect for Shopify Payments is integrated with the merchant’s store, and is optimized for their sales. Once signed up, merchants pay a small fee for each order protected. If a chargeback occurs, Shopify covers the amount and the merchant is in the clear.

They say that for small businesses, Fraud Protect provides the certainty and peace of mind of knowing all of their sales are guaranteed. For growing and large businesses, Fraud Protect provides a fast and easy fulfillment process, which means lower operating costs and a better customer experience.

Saying of the reasoning and purpose behind the new feature:

We talk to merchants every day and one of the recurring themes we often encounter is the amount of time and effort they put into preventing fraud, and the anxiety and turmoil they put up with when dealing with a chargeback on an order they’ve already shipped. With Fraud Protect, merchants will never have to think about fraud and chargebacks. They can fulfill all of their orders with peace of mind, knowing that Shopify has them covered if the order is fraudulent.
-Andre Lyver, Head of Financial Solutions, Shopify

Only online orders processed through Shopify Payments are eligible for protection through Fraud Protect. Orders that are not eligible – such as PayPal or point of sale orders – continue to be processed in the same way as currently.

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