Recommendations to reduce the Chargebacks and frauds
Request ID Upon Pickup or Delivery
Credit card fraudsters generally dislike being caught in-person. You can deter fraudsters by informing them upon ordering that a valid ID will be required at the time of pickup or delivery. Thereafter, we would recommend enforcing this requirement for amounts greater than $25 or some other threshold that balances order volume vs a large payment amount. eg. you may find that 80% of your orders are under $25 and that asking for ID for amounts above $25 reduces the potential for loss without a significant impact on your operations.
Sign Order Receipt
If you are concerned about chargebacks due to non-delivery claims, you can print an extra receipt and have your customer sign the receipt upon delivery as an indication of receipt.
Fraud Risk Scoring Engines
Merchants who ship high-value goods often use fraud risk scoring tools to determine when to utilize extra authentication. While these measures can be effective, it comes with a per-transaction cost of $0.10. For an average order amount of less than $50, it is typically not cost-effective. In a situation where products are delivered in-person and the fraudster can be caught in-person, the need for these types of anti-fraud controls is even lower.
In April of 2021, Clover released an update in which you can choose the Fraud prevention tools for your business, this allows you to automatically void suspicious non-device payments taken on the eCommerce API. They don’t block payments taken from your device.
Online Order uses the Clover Pay API to send the credit card information to Clover directly from the customer's browser right to the Clover API. The Online Order app never sees the customer credit card info and it goes right into your Clover account just like any other payment you may take in the store.