Security & Fraud

Shopify Launches Fraud Protect, One-Click Dynamic Checkout

It’s hard enough for well-heeled, established businesses to identify and fight eCommerce fraud. For smaller merchants with an online presence limited to marketplace platforms such as Etsy or Shopify, it can be nearly impossible.

The owners of these small, independent businesses didn’t go to business school, let alone fraud and security training. These merchants rely on the platform they’re using to protect them and their customers from bad actors. They also count on payment and platform partners to help them navigate and address chargebacks.

For these online retailers, Shopify has just launched Fraud Protect by Shopify Payments. The feature was announced at the company’s annual partner and developer conference, Unite, taking place May 7 through May 9, 2018 in Toronto, Ontario — one of the fastest-growing markets for tech jobs in North America.

With Fraud Protect by Shopify Payments, if a customer issues a chargeback due to fraud on a protected order, Shopify will automatically issue a refund covering the full amount of the chargeback, as well as any associated fees. If the transaction is indeed fraudulent, Shopify will eat the loss.

The firm receives disputes from Visa and Mastercard, and then fully handles them, freeing up the merchant to continue doing what he or she does best: creating, curating and selling great products, and just generally running and growing a business.

Shopify told PYMNTS that this helps reduce the complexity for merchants who lack the experience of identifying fraud, while also eliminating the time merchants spend on processing and handling the chargeback dispute overall.

Merchants who wish to enable Fraud Protect can do so by selecting the option in their Shopify Payment settings. Pricing for the service has yet to be announced.

At the same time, Shopify has also announced the launch of its one-click Dynamic Checkout, which is similar to Amazon’s one-click ordering. This feature enables shoppers to make a purchase from directly within the product pages where they are making that purchase decision. Then, at the touch of a button, Dynamic Checkout surfaces shoppers’ preferred payment method to facilitate one-step checkout.

——————————–

LATEST INSIGHTS:

Our data and analytics team has developed a number of creative methodologies and frameworks that measure and benchmark the innovation that’s reshaping the payments and commerce ecosystem. Check out the latest PYMNTS Credit Union Innovation Index

TRENDING RIGHT NOW

To Top