The company announces that the Fraud Protect for Shopify Payments system will be available to a select group of merchants in the US, who will be notified via email, as well as with a notification within Shopify. The service is expected to expand to more merchants in the near future.
Shopify’s fraud detection technology has the ability to accurately determine which orders are considered fraudulent. Its algorithms will analyse incoming orders and decide if an order should be set as “protected.” If a fraudulent chargeback on a protected order then occurs, Shopify will automatically reimburse the merchant.
Moreover, usually if merchants can’t handle fraud detection in-house, they’ll work with a partner who specialises in this technology. However, Shopify offers the technology directly to its merchant partners, meaning it is managing the risk itself, and it’s decreasing the loss involved with fraudulent transactions.
The company’s plan is to introduce fraud protection at its Unite conference in Toronto, where it also debuted the marketing app Shopify Ping and support for sellers managing inventory across multiple stores. The pricing for the service will vary, but it will be a small percentage of the order amount that’s protected.
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