We work hard to help prevent fraud, but every online transaction still carries some risk. That’s why we recommend that all merchants take a proactive approach to risk management.
If something seems too good to be true, it probably is. While none of these warning signs necessarily mean an order is fraudulent, it is important to look out for the following:
The shipping address is in a high-risk location.
Search online to find a list of countries well-known for fraud.
The order is larger than normal.
The customer asks to change the shipping address after paying.
There’s an abnormal number of international orders within a short time.
There’s an abnormal number of orders at an unusual time of day.
Several orders from different customers have the same shipping address.
You receive multiple small orders from the same PayPal account.
A customer overpays.
An order consists of multiple requests for the same item.
A customer requests rush or overnight shipping.
A customer uses a suspicious email address.
An order has a suspicious shipping address.
The amount of time you spend on fraud prevention will depend on what you sell, who your customers are, and the amount of risk you're willing to take. If you sell expensive, in-demand products, your fraud prevention and detection processes are even more critical.
You're responsible for fraud losses that aren't covered by Seller Protection. Opportunistic fraudsters take advantage of businesses that aren’t aware of fraud risks. Nobody knows your business as well as you. You know your biggest customers and are familiar with their buying patterns. No payment processor will ever know these things as well as you, so your involvement in risk management is essential.
Our information does not constitute legal, financial or business advice. We are not responsible for your decision on disputes and chargebacks. Always do your own research and seek professional advice if needed.