Shopify has begun rolling out its Fraud Protect product to select merchant customers in the U.S.
Fraud Protect protects merchants from chargebacks due to fraud. When sellers opt in, Shopify will issue a refund and manage the dispute on a fraudulent transaction it has deemed “protected,” the company said.
The Fraud Protect technology analyzes incoming transactions and automatically selects the ones to protect, preventing merchants from having to review orders manually, according to a company blog post. Merchants using the service will pay a small fee per protected transaction.
Shopify first announced the existence of Fraud Protect with other product rollouts in May, noting that the fraud protection was “coming soon.”
On Tuesday, TechCrunch reported that Shopify has begun the rollout in the U.S.
“With Fraud Protect, merchants will never have to think about fraud and chargebacks. They can fulfill all of their orders with peace of mind, knowing that Shopify has them covered if the order is fraudulent,” Andre Lyver, head of financial solutions at Shopify, told the publication.
According to the TechCrunch article, Shopify has developed the technology that analyzes the transactions and is managing the risk and absorbing the losses itself, rather than connecting its merchants to a fraud detection partner.
Shopify will notify merchants directly when they are eligible for the service, the company said.