Fraud & Risk Management

Use address verification (AVS), require CVV, implement 3D Secure for European transactions, flag orders where shipping and billing addresses are in different countries, and use machine learning fraud detection. International orders have higher fraud rates than domestic, invest in prevention before scaling.

International orders typically see 2-3x higher chargeback rates than domestic. Common causes: customer didn't recognise the charge (foreign merchant name), unexpected duty charges on arrival (DAP shipping), longer delivery times leading to impatience claims, and genuine fraud. DDP shipping prevents duty-related chargebacks entirely.

Marketplaces like Amazon set strict response deadlines and refund triggers. You may need to refund before the returned product arrives back. Amazon's returnless refund policy means you sometimes refund without receiving the item. These policies directly impact cash flow and unit economics. Understanding per-market rules is essential for pricing.

Card testing (small international purchases to validate stolen cards), identity fraud (using stolen personal data), friendly fraud (customers falsely claiming non-receipt), and reshipping fraud (using package forwarding to obscure location). International transactions are harder to verify, making them more attractive to fraudsters.