Early fraud warnings
ShopWired's Early fraud warnings system is designed to protect merchants from potential disputes and chargebacks by alerting them to transactions that are at high risk of being subject to a dispute. This pre-emptive measure allows for proactive management of transactions that may otherwise result in financial losses and penalties.
Early fraud warnings are triggered by reports from financial institutions, such as and . When ShopWired Payments receives notification that a transaction on your ShopWired store has been indicated, through one of these systems, as being potentially fraudulent, you'll receive an email alert. The alert will allow you to review and take necessary actions promptly.
Steps to take after receiving an early fraud warning
When you receive an early fraud warning, we recommend taking immediate action. Here's a step-by-step guide on how to proceed:
- Contact the customer - reach out to the customer involved in the transaction to verify its legitimacy. This can help clarify any misunderstandings or confirm suspicions of fraud
- Review the transaction details - examine the transaction's specifics, including payment method, purchase history, and any communication with the customer
- Look for red flags that might indicate fraudulent activity
- Consider issuing a refund - if you cannot verify the transaction's legitimacy or wish to avoid a potential dispute, issuing a refund might be the best course of action. This can help avoid chargeback fees and the hassle of a dispute resolution process
Early fraud warnings indicate a high likelihood that a transaction is fraudulent, and it is expected that in 80%+ of early fraud warnings, a dispute will be received within 24-48 hours. Even if a dispute is not received within this timeframe, a dispute is still likely up to 10 days after receiving the early fraud warning.
