Prevent Fraud Right Meow!
So, the internet is pretty great. With an online store, you can sell your awesome products all over the world. However, with this great power comes certain responsibility. As an online store owner, it’s important to understand that there are some fraudsters out there just looking to take advantage of innocent e-commerce citizens. So let’s talk about some essentials for protecting yourself from the clutches of Digital Cat Burglars.
Digital Cat Burglars
What is a Digital Cat Burglar, you say? These sneaky cats make online purchases with stolen cards. And instead of a ski mask, they hide behind the anonymity of the Internet to do their thieving. But you don’t have to get taken for all you’re worth if you take preventative measures!
Running an online store is still like running a physical store — you have to keep an eye out for potential shoplifting. With every new order, quickly background check your customers before you ship out the merchandise. Digital Cat Burglars leave clues that make them easy to spot:
- The credit or debit card’s country of origin is different from the shipping address.
- You can see the cardholder’s name and country in your Stripe account and on the Storenvy order page (see below). If the name and shipping address is different from the cardholder, the order might be fraudulent.
- “CVC check” and “Zip check” did not pass, or is unavailable. This can be be found on the Stripe dashboard.
- More than one purchase from the same customer, in a short period of time.
- A customer purchased more items than you normally receive.
- High-ticket items, if you sell expensive goods make sure your customers are legit.
- The customer’s zip code, phone number, or email address looks fake.
- The customer contacts you after purchasing, asking you to ship merchandise to a different address.
- Morocco and Algeria have been removed from the Storenvy Marketplace due to fraudulent purchases. If a customer asks you to ship here instead, don’t do it.
- The customer used different cards to make multiple purchases
- The customer rush orders or demands overnight shipping.
The Cat is Outta the Bag
Let’s say you find a suspect order: “You have cat to be kitten me, this order is fraudulent what do I do?” Refund the transaction. The best way to avoid a chargeback fee is to refund the fraudulent payment, before it becomes a dispute.
When a dispute is filed, the payment is withdrawn and returned to the rightful owner leaving you with a chargeback fee. Give yourself enough time to investigate new orders before you ship them out. This will help prevent any possible chargeback fees with Paypal or Stripe.
Your store policies can include something like this: “International, high priced, or large orders take 1-3 days longer to ship.” Use your FAQ’s and shipping policies to protect your store.
Contacting a suspicious customer directly can help determine their legitimacy. Signals such as, the customer’s response is abnormal or the email address is invalid can indicate a fraudulent user.
Stripe may also notify you about a bad transaction in your account. Be proactive and refund the payment in question.
Would you let customers shop in your store without any supervision? Your online store needs the same amount of care. If you suspect an order is fraudulent you can reach out to Stripe, or Paypal, for insight on the transaction as well.
You have your payment processor and best friends at Storenvy doing what they can to protect you. That said, it is important to take responsibility and know what to look for. Do your background checks!
Guess what, it’s more likely your orders will be legitimate and amazing. If you do receive a fraudulent purchase you know exactly what to do! Have fun running a business with confidence and cattitude.