Risky orders are part of running an online store, but Shopify gives merchants the ability to build smart rules that help spot fraud before it hurts. By combining Shopify’s built-in risk analysis with custom filters and order review practices, merchants can protect their store from costly chargebacks while keeping good customers happy.
Why Risky Orders Can’t Be Ignored
Running a Shopify store means juggling many moving parts, from marketing to fulfillment. One chargeback can undo hours of work, not to mention the financial loss. Fraudsters often test weak points in a store’s system. Ignoring the warning signs can snowball into higher fees, lost products, and even processor scrutiny.
The real danger is that fraud rarely stops with a single order. Once fraudsters find a vulnerable store, they often return. This leads to multiple chargebacks in quick succession, putting your account in jeopardy. Shopify merchants must remember that card networks monitor chargeback ratios closely. Repeated fraud isn’t just a headache, it can threaten your ability to accept payments altogether.
Building Rules Inside Shopify
Shopify’s fraud analysis tool is the first layer of defense. It highlights red flags like mismatched billing addresses, high-value transactions, or multiple failed payment attempts. But to make the most of it, merchants need to create rules that fit their own risk tolerance.
The beauty of Shopify’s setup is that these rules can evolve. A small business may start with only basic filters, then gradually add more advanced rules as transaction volume increases. Larger stores often create layered rules that account for both fraud risk and customer behavior.
Filters to Consider
Think of filters as the rules you create to catch suspicious patterns. Instead of one long list, it helps to group them into categories:
Geographic filters
Orders from regions with high fraud rates can be flagged for manual review. This doesn’t mean rejecting all international customers, but it does mean slowing down fulfillment until the order is verified.
Behavioral filters
Multiple failed payment attempts, unusual order volumes, or inconsistent email addresses can be signs of trouble. Reviewing these cases before shipping can prevent unnecessary losses.
Transaction filters
Large orders from new customers or first-time buyers who select expedited shipping are worth a closer look. Fraudsters tend to push urgency to get goods before the cardholder notices.
Going Beyond the Basics
While filters and rules help, fraudsters are always adapting. Merchants should explore additional steps like two-factor authentication for high-value orders, or requiring signature confirmation on delivery. These measures create extra layers of protection, which can make your store less appealing to fraudsters looking for easy targets.
It’s also wise to make use of Shopify’s integrations with third-party fraud prevention apps. Many of these tools offer machine learning models that study purchase behavior across thousands of stores, giving you insights no single merchant could gather alone. These tools can be pricey, but the savings from avoiding a wave of chargebacks often outweigh the cost.
Balancing Rules and Customer Experience
Too many filters can frustrate genuine customers. Canceling legitimate orders or delaying shipping creates its own risk in the form of negative reviews, lost loyalty, and wasted opportunities. Merchants should test their rules over time, adjusting them based on real outcomes.
One approach is to set rules that trigger review rather than automatic rejection. This lets you look closer without immediately turning away a potential customer. Clear communication also helps. If you must verify an order, explain to the customer why. Most buyers appreciate extra security if it’s framed as a way to protect their account.
Monitoring and Adjusting Over Time
Fraud trends change quickly. A filter that worked last season may be less useful today. Merchants should review flagged orders regularly to see which rules are catching fraud and which are creating false alarms. Documenting these patterns makes it easier to refine rules and reduce friction for good customers.
Another best practice is to assign responsibility within your team. If one person consistently reviews flagged orders, patterns become easier to spot. Over time, that experience can help improve the accuracy of your rules and reduce manual work.
Turning Smart Rules Into Long-Term Strategy
Smart rules aren’t a one-and-done setup. They’re a living part of risk management that must evolve as fraud tactics evolve. By pairing Shopify’s built-in features with your own knowledge of customer patterns, you can stay ahead of fraud without losing sales momentum.
The bottom line: every store faces some level of risk, but those who put careful effort into designing and refining rules will keep losses low and avoid the pain of repeated chargebacks.