What recourse do we have as a online store for fraud on CC?

BoneDaddys — Mon, 31 Aug 2026 16:12:46 GMT

We just lost a CC challenge for a charge that was merchandise purchased online and sent to the address entered. How do we protect ourselves against this?

Re: What recourse do we have as a online store for fraud on CC?

rtfulk — Mon, 31 Aug 2026 20:07:33 GMT

@BoneDaddys

Unfortunately, shipping the merchandise to the address the customer entered does not automatically protect you from a chargeback. With online/card-not-present sales, the bank is looking for evidence that the actual cardholder authorized the purchase and/or received the merchandise.

A few things I would do going forward:

1. Turn on Square Risk Manager and review its fraud rules.
2. Consider using 3D Secure on transactions Square considers risky. Successful 3D Secure authentication can provide liability protection on certain fraud disputes.
3. Pay attention to AVS and CVV mismatches, especially if billing and shipping addresses are different.
4. Always ship with tracking and keep documentation showing the full delivery address, tracking number and Delivered status.
5. For expensive orders, consider requiring a signature on delivery.
6. Keep order confirmations, emails/texts with the customer, and clearly documented return/refund policies.

To turn on Risk Manager, go to your Dashboard/Payment & Invoices/Risk Manager. From there you can turn on Risk Manager and 3D secure for transactions.

Click on settings and at the bottom there is a 2 minute tour to walk you through it. I has caught 7 fraudulent charges for us.

thread What recourse do we have as a online store for fraud on CC? in Online Store

What recourse do we have as a online store for fraud on CC?

Re: What recourse do we have as a online store for fraud on CC?