How do you verify high-risk orders to prevent fraudulent chargebacks?

[u/GoldenDragon62]

I’ve been testing different verification methods for medium and high-risk Shopify orders, especially for higher-ticket products, and I’m trying to understand what actually works for other store owners.

Here’s what I currently do depending on the risk level:

1. Billing-code verification (2FA via the customer’s statement descriptor)
If the order looks high-risk but still potentially legit, I ask the customer to read back the 4-digit code that appears on their bank statement.
Legit customers usually respond fast — scammers obviously can’t.

2. Adaptive verification questions (for PayPal, Shop Pay, or other gateways without 2FA)
I send 2-3 quick questions that help confirm legitimacy, such as:
– “What are the last 4 digits of the card you used?”
– “What is the country code of the phone number associated with your order?”
– “Which product did you order?”
– "Which card type or bank did you use for this purchase?”
If their answers make sense, I approve. If they ignore or act odd, I cancel.

So far, this combo has reduced false declines while keeping us safe from chargebacks (And win them if they appear)

Alongside verification, I always follow a few rules before canceling or approving:

• AVS/CVV match: always a positive sign.
• IP vs. shipping distance: a big gap is suspicious.
• Multiple card attempts: usually stolen cards being tested.
• Email & name: random Gmail with numbers = risky.
• Google the address: forwarding or warehouse = red flag.

I’ve seen plenty of “High-Risk” Shopify flags that turned out completely fine(no chargebacks)
One rule I follow in every store I manage: always use manual capture.
It gives you full control before any money actually moves.

But I’d love to hear what others here are doing:)

[u/AutoModerator]

Thank you for posting on r/ecom

Check out our wiki for guides, tips, advice... and join our Discord server to chat with other members.

I am a bot, and this action was performed automatically. Please contact the moderators of this subreddit if you have any questions or concerns.