Chargebacks are a growing concern for small and medium businesses. This is why it is important to have a good WooCommerce anti fraud prevention plugin installed.
For many small businesses, eCommerce is the primary (or only) source of revenue. Chargebacks can affect your projected and realized revenues and disrupt future plans. Companies lose an average of 1.8% of their revenue to chargeback scams.
To run any business successfully, you must ensure cost efficiency at every step. Due to small ticket sizes and high shipping costs, small businesses already have a slim margin in eCommerce sales. If chargebacks start eating profits from that, it’ll soon be a huge problem for the businessThThisticwe ll look at the best WooCommerce fraud detection plugins and ways to prevent chargebacks.
WooCommerce Fraud Detection & Prevention Plugins
Here are some of the useful plugins to improve WooCommerce security and for fraud detection in WooCommerce store.
The WooCommerce Anti-Fraud plugin is a must-have for all WooCommerce stores. Since it’s developed by WooCommerce, it integrates seamlessly with your website and prevents a range of scams and fraud.
This plugin automatically detects fraudulent orders and blocks them apart from giving alerts for all suspicious transactions. You can also check users hidden behind a proxy or VPN.
You can customize it to block all orders from high-risk countries, countries where cybercrime is thriving. The WooCommerce Anti-Fraud plugin even provides protection against velocity attacks.
- Stop or pause fraudulent orders automatically
- See the dangers and advisories connected to each order
- Get alerts when an order is placed that is risky or fraudulent
- Check for customers using a VPN or proxy
- Block orders coming from high-risk countries and territories
- Defend against strikes with velocity
- Cut down on store management time by quickly removing fraudulent orders
- Incorporate MaxMind’s minFraud® services into your online marketplace
YITH WooCommerce Anti-Fraud
YITH Anti-Fraud for WooCommerce is another great plugin that can help prevent chargeback fraud.
This plugin checks if there are suspicious actions during the purchase process by assigning a coefficient of risk which will block the order automatically if it is too high.
You will receive an email about this and can ask for more information from the buyer before approving the purchase.
- Checks against suspicious activity while making a purchase
- Turn on an anti-fraud scan in the plugin’s options section
- Check each user’s initial order
- Verify that the users’ nation matches the store’s
- IP address geolocation of the user
- Verification of the users’ delivery and billing addresses
- Change the level of fraud risk instantaneously
- Amount each condition’s weight in relation to the overall risk value
- Verify whether any emails from users come from untrustworthy domains
- Every order placed by particular nations marked suspicious
Woo Manage Fraud Orders
Woo Manage Fraud Orders is a great free WooCommerce fraud prevention addon. It enables blacklisting client information such as the billing phone number, billing email id, and source IP.
The plugin tracks the number of fraud order attempts for payment gateways and blacklists the customer if the number of fraud attempts exceeds the limit set.
- Counts the frequency of payment gateway fraud order attempts
- Manually block customer information
- Automatically cancel any suspicious orders
- Automatically block future fraudulent clients
FraudLabs Pro for WooCommerce
FraudLabs Pro is yet another fraud-prevention plugin for WooCommerce stores. The plugin will help merchants to detect and stop fraudulent orders.
It performs a comprehensive check on all elements found to detect fraud patterns. The checking includes geolocation, proxy, email, shipping address, credit card, transaction velocity, etc. It will also check against blocklist data from the global merchant network in real-time.
- Uses machine learning technologies and blacklist data to detect fraud
- Learns fraud patterns from your approvals, rejections, and blacklisting of orders
- Crowdsourced blacklist information from a massive merchant ecosystem
- Thorough checks on order transactions to efficiently uncover fraudulent activity
WooCommerce Fraud Prevention Plugin
Fraud Prevention Plugin will refuse orders from specific visitors based on customizable blacklisting criteria. You can block fraud customers by email, IP address, state, and zip code.
- Block fraud customers during user registration
- Block fraud customers at checkouts
- View blacklisted user details
- View reports on the dashboard
- Block fraud customers by multiple IP addresses. multiple states, multiple zipcodes
- Set custom message for the blacklisted user
- Block fraud customers by suspicious email addresses
SEON is among the tested and proven anti-fraud tools effective against chargeback fraud. It is not a WooCommerce plugin, but it can be used on the WooCommerce store.
Learn more about how you can prevent chargeback fraud using tools like SEON.
- Add an additional protection layer or complete security management
- Scale processes and manage ROI
- Refuse to accept payment with cards or credentials that have been stolen
- Stop fraudulent transactions before they hurt your company
- Analyze your whole digital trail to find fraudulent accounts
- Utilize a user-friendly dashboard for dangerous transactions to reduce the need for time-consuming manual assessments
- Fraud calculator to determine how much you can save
What Is Chargeback?
When the amount that a customer pays is returned to them, it’s called a chargeback. The customer must first raise a dispute with the eCommerce website or payment facilitator. Transaction reports and account statements are checked before granting a chargeback.
Chargebacks work with both credit and debit cards. As a WooCommerce merchant, you will have to bear a fee for every chargeback. The payment gateway providers charge a stipulated fee for chargeback requests. If the merchant itself initiates the chargeback, mostly there are no additional fees.
On average, merchants pay between $20 and $100 in chargeback fees. Chargebacks are different from void transactions. In a void transaction, the payment is canceled from either end before settlement. As a result, merchants hardly incur losses due to void transactions. The same is not true for chargebacks.
Types Of Frauds That Can Happen In WooCommerce Store
There are both genuine and fraudulent chargebacks. When we talk about preventing chargebacks on WooCommerce sites, we are referring to chargeback fraud. Sometimes, the customer could have a genuine dispute with the payment, and it’s their right to get the amount back in such cases.
Chargeback fraud occurs when a customer raises a false dispute. In most cases, they raise the dispute to the payment provider directly. Since it’s difficult for the payment provider to manually monitor every transaction on millions of websites, customers generally get the amount back.
For example, someone could order a smartphone and later claim it arrived damaged. They will then raise this dispute with the payment provider and demand a chargeback. There are several other grounds for dispute as well:
- Not receiving the product at all
- Receiving a wrong item
- Claiming credit or debit card theft
- Accusing the eCommerce vendor of misleading promotions
How To Prevent Fraudulent Activities On WooCommerce?
Let’s go through the different steps and approaches to prevent chargebacks. Most of these apply to all eCommerce stores and not only WooCommerce sites.
Choose The Right Payment Provider
If you choose the right payment provider for your WooCommerce sites, you can successfully prevent many chargebacks. However, there is no clear answer regarding what makes a payment provider better than others for a chargeback.
For WooCommerce sites, using Stripe and Braintree are good options. Both payment providers have anti-fraud mechanisms built-in, which help in fraud chargeback prevention.
Add Firewall Protection
Firewall protection adds a layer of security to your WooCommerce site. It prevents bots and scammers from getting access to your store. It’s a simple yet easily overlooked step to prevent chargebacks.
Great Customer Support Team
Regarding genuine chargeback disputes, having a good customer support executive or team can make a lot of difference. Buyers often claim chargeback when they do not get the right answers to their questions.
Prevent Errors On The Merchant Side
The only way to prevent merchant errors is to be more vigilant and adopt better technology. For example, you can use a SaaS accounting tool to ensure all your billings and confirmations are accurate. And as we mentioned in the last point, a good customer support team can also help prevent many of these errors.
Good User Interface & Clear Product Descriptions
The user interface is not the first thing that comes to our mind when we think about chargeback fraud. But you’d be surprised to know that many genuine chargeback claims are a direct result of a confusing user interface.
For instance, if a buyer cannot navigate to the right item and places a wrong order without realizing it, you will have to bear the chargeback fees later. It could have been avoided by simply having a better user interface.
Add CAPTCHA To Checkout Pages
CAPTCHAs can help you identify human users from bots. This is relevant for chargeback scams since it’s often bots and applications that carry out the fraud. It allows cybercriminals to target thousands of eCommerce stores at once.
Use Anti-Fraud Tools
SaaS tools have helped eCommerce businesses in a thousand ways. Everything from accounting to customer relationship management can now be handled by SaaS tools. Similarly, you can use anti-fraud tools to prevent chargeback disputes and all scams and fraudulent activities.
Preventing Fraud Orders In WooCommerce Conclusion
Preventing fraudulent and legitimate orders and chargebacks requires different approaches. Fraud or otherwise, chargebacks can cost eCommerce stores a lot of money. With these tips, strategies, and mentioned plugins, you can successfully prevent chargeback and save money.
For security, you can also use plugins such as iThemes Security, WordFence, MalCare, etc.
Atreyee Chowdhury works full-time as a Content Manager with a Fortune 1 retail giant. She is passionate about writing and helped many small and medium-scale businesses achieve their content marketing goals with her carefully crafted and compelling content. She loves to read, travel, and experiment with different cuisines in her free time. You can follow her on LinkedIn.
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