How to Prevent Chargebacks and Fraud

How to Prevent Chargebacks and Fraud

Unfortunately, when credit cards are accepted as payment there's a risk of chargebacks due to claims of fraud or non-delivery of products.  

There are some simple ways to limit the risk that has worked effectively at Online Order merchants already.



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.


Use Clover Fraud Prevention Tools

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.

We use SSL and RSA encryption to secure the customer credit card number.  Card transactions are verified with CVV and ZIP code validation so that the best available online credit card verification is utilized.


How to get help:

If you need help at any time, you can easily find articles on our Support & FAQ site for the most common topics and questions.

Need more help? Call us at (650) 681-0400.
Our helpdesk is staffed from 8:00 am to 6:00 pm CST, Monday to Friday. Please leave a voice message if you reach outside normal business hours. You can also contact our Support Team at support@4leaflabs.com.

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