7+ Best Shopify Fraud & Chargeback Prevention Apps in 2024

I've sold on Shopify and always worried about fraud. This led me to research many fraud prevention tools.

I want to share what I've found in this guide.

Chargeback is the best overall chargeback prevention app. It cuts dispute rates by alerting you early about chargebacks.

For targeting fraud, NoFraud might work better in some cases. It screens orders.

Keep reading to know which of these apps is best for who.

Top Shopify Apps to Prevent Fraud

1. Chargeback: Best chargeback prevention app
2. NoFraud: Best for smaller businesses
3. Signifyd: Best for low-risk fraud prevention
4. Kount: Best for global sellers
5. SEON: Also great for smaller businesses
6. FraudLabs Pro: Great fraud-scoring tool for small businesses
7. Beacon: Best for phone number lookups
8. ClearSale: Best for sellers in the US or Latin America

Read through the guide we wrote on how Shopify handles chargebacks before continuing.

You might find helpful tidbits to choose the right tool.

Isn’t this an article about fraud prevention?

Fraud accounts for 34% of all chargebacks [1]. It's vital to know about chargeback disputes too.

As for what I’ll cover.

Each section explains who the app suits best and why.

I'll then break down the features, with use cases for each.

You might wonder why I picked these apps...

Why Did We Choose These Apps?

I chose these apps because they:

• Offer fair pricing
• Have free trials
• Provide good features
• Suit different-sized businesses
• Get praise from other users

Some apps might not fit your budget. Others may lack features you need.

That’s the beauty of variety. Pick what’s applicable and ditch the rest.

Let’s kick things off with a great app.

1. Chargeback: Best Chargeback Protection App

• Best for:some text
  • Digital product sellers
  • Low average transaction values
  • Sellers with high chargeback rates (~1%)
• Pricing: Cost per alert
• Features: Chargeback alerts

Pros:

• Super effective in preventing chargebacks
• Works with all chargeback types
• Automates dispute prevention

‍

Cons:

• Only focuses on chargeback alerts

Chargeback is best for digital product sellers or those needing lower chargeback rates.

Fraud — first- and third-party — is a type of dispute. Thus, this tool will prevent the chargeback that’ll follow a fraud case.

Chargeback alerts work like this:

• Customer complains to the bank.
• Bank sends a chargeback alert to the seller.
• Seller responds.

Usually, a merchant refunds the customer. This prevents the dispute from happening.

This tool doesn’t prevent fraud.

It protects you from fraud chargeback damage.

You'd need to pair it with another tool for best results.

But you should know if chargeback alerts are worth it.

Here’s when you’d need dispute alerts:

• Have lower average sale values: Refunding pricey items causes more losses.
• A high-risk seller: Use all tools to cut dispute rates.
• In a dispute program: It's important to exit fast.
• Lack chargeback staff: It cuts work for teams without dispute experts.
• Have high chargeback rates: If your rate is near 1%.
• You often lose chargebacks: If you win less than half of disputes.

Wait.

I’m the dude writing for this site and am recommending their product?

As someone who’s transitioning into selling digital products, I'd use this to prevent chargebacks and fraud damage.

If my chargeback rate got high when selling physical goods, I'd use Chargeback.

Their signup is smoother than competitors. And their dashboard is easier to read.

Like I said, this tool isn’t for everyone.

Use the list above to determine whether it’s suitable.

Otherwise. Keep reading to find one of the many fraud prevention tools.

Try Chargeback today.

2. NoFraud: Best for Smaller Businesses

• Best for:some text
  • High-value orders
  • Merchants with a lot of fraud
• Pricing: some text
  • No chargeback protection: Free with 100 screened orders monthly and no human review
  • With chargeback protection:some text
    • 1%, 1.25%, or 1.5% of revenue. Each tier has monthly minimum costs; $250, $350, and $450
  • Businesses with more than $50,000 in revenue: Custom pricing
• Features:some text
  • Fraud screening
  • Chargeback insurance (paid)

Pros:

• Financial guarantee on fraud chargebacks
• Real-time AI fraud screening
• Custom fraud rules and workflows
• Manual review for high-risk transactions
• Free tier available

‍

Cons:

• Costs add up quickly
• Limited control over some fraud review choices
• Not ideal for low-risk merchants.

NoFraud suits businesses with high-value orders needing proactive fraud prevention and chargeback protection.

It mixes machine learning and human review to fight fraud while approving valid orders.

One App Store review claimed NoFraud had a 97.2% approval rate.

NoFraud's AI checks thousands of data points and flags risky orders for manual review.

Providing a balance between automation and human oversight.

It also offers a lot of neat settings like:

• Blacklist
• Screen for coupon abuse
• Automatically cancel fraud orders
• PayPal, Amazon Pay, and Buy Now, Pay Later support

NoFraud stands out with its financial guarantee on chargebacks.

If a chargeback happens on an approved order, NoFraud pays. This saves you from fees.

Many competitors offer this perk. However. NoFraud offers a lower barrier to entry for accessing it.

Other key features include custom fraud detection settings and real-time identity checks for risky orders.

Low-risk product merchants might not need NoFraud, as costs could outweigh chargeback savings.

But for high fraud risk, the protection is worth the investment.

The free tier without chargeback protection suits merchants ineligible for Shopify Fraud Protection.

If you have under 100 monthly orders...

This is why I suggest using it for high-value orders. As you might not have as many shoppers.

Is NoFraud legit?

Bear with me for a second.

It's the most recommended fraud app I saw on Reddit. The accounts seemed real and didn’t look like stealth marketers.

I saw no complaints. But many paired it with Shopify's fraud protection. I'll discuss this soon.

For now, let’s move onto another popular option.

Find NoFraud here.

3. Signifyd: Best for Low-Risk Fraud Prevention

• Best for: 
• Pricing: Unclearsome text
  • Flat fee; or
  • Transaction-based pricing; or
  • Percentage-of-GMV
• Features:some text
  • Fraud detection
  • Chargeback insurance

Pros:

• Full chargeback protection, including fraud and missing item claims
• Automates fraud prevention with little merchant input
• 98% order approval rate boosts sales
• Quick fulfillment with instant order choices

‍

Cons:

• 1% fee on total order value
• Risk of false positives in unclear cases
• Pricier for small merchants with low fraud rates

Signifyd is a great choice for merchants with many orders needing auto fraud detection and chargeback protection.

It checks orders in real-time, giving instant choices and guarding against all chargebacks.

The chargeback guarantee moves risk from merchants. They can focus on sales without worry about fraud losses.

This protection is great for businesses selling risky items like luxury goods or tech.

The 98% approval rate beats many rivals, including NoFraud. It helps merchants save more valid sales often seen as risky.

Signifyd also offers machine learning, which keeps improving detection accuracy, and detailed data tracking.

These help businesses work better and cut fraud risks without manual work.

The app is vital for businesses with risky products or frequent chargebacks. The financial guarantee justifies the 1% fee.

Many sources say Signifyd has a 1%-per-order fee. Others say plans start at $1,000 monthly.

You must contact them for custom pricing...

However.

For lower-risk merchants, the cost may outweigh the gain.

Signifyd focuses more on full automation than NoFraud. It's better for scaling fraud prevention with minimal input.

NoFraud may be more cost-effective for merchants needing more flexibility or custom rule settings.

Want a beefier alternative? Consider the next pick.

Get the Signifyd app here.

4. Kount: Best for Global Sellers

• Best for: High-volume merchants that handle orders globally
• Pricing: Must contact sales
• Features: some text
  • Bot detection
  • Fraud flagging
  • Chargeback alerts
  • Fraud notifications

Pros:

• AI-driven fraud detection using global data
• Adjustable risk limits and rules
• Real-time fraud scoring system
• Chargeback protection available

‍

Cons:

• High setup and usage costs
• Possible false positives
• Not ideal for small businesses

Source: Shopify

Kount is best for merchants handling global sales and needing advanced, custom fraud detection.

Its AI platform checks billions of data points yearly. Merchants can make custom fraud rules and real-time fraud scoring.

Merchants can fine-tune rules for their needs, offering more control than NoFraud or Signifyd.

This mix cuts chargebacks while approving more valid orders accurately.

I couldn’t find an average approval rate percentage, though.

Kount stands out because of its deep AI network and ability to customize fraud settings.

Its real-time fraud scoring is great for merchants with many transactions.

It gives instant fraud checks.

Kount is necessary for businesses with frequent chargebacks or high fraud risk.

Merchants who need more control over fraud prevention will like Kount's flexible setup.

Smaller businesses may find the high cost and complexity too much compared to simpler options.

How does it compare against other options?

Signifyd focuses on automation.

NoFraud balances AI and human review.

Kount offers the deepest customization, making it ideal for merchants seeking more nuanced fraud control.

Don’t leave yet. You might like this next option more.

Find the Kount app here.

5. SEON: Best for Small Businesses

• Best for: Small businesses needing more fraud protection
• Pricing:some text
  • Free: 500 manual checks monthly
  • Starter: $299/mo for 1,000 checkssome text
    • $0.15 per check after exceeding allowance
  • Pro: $599/mo for 3,000 checkssome text
    • $0.10 per check after allowance
• Features:some text
  • Chargeback analytics
  • Order validation
  • Bot detection
  • Fraud notifications

Pros:

• Real-time social and digital data profiling
• Highly adjustable fraud rules
• No chargeback guarantee model
• Easy plug-and-play setup

‍

Cons:

• Limited free tier
• Harder to learn for full customization
• No dedicated support in lower plans

SEON suits merchants needing custom, data-rich fraud prevention without chargeback guarantees.

It checks over 50 digital signals in real-time.

This helps spot real customers while reducing false alarms.

Merchants can accept more sales that other services might flag as risky.

However:

Their auto-approval rate is 90.6%.

SEON stands out with its data enrichment feature.

It builds customer profiles from many sources, including:

• Email
• IP
• Device fingerprinting

This gives deeper insights into each sale, improving fraud detection accuracy.

The platform's flexible rules let merchants tailor the system to their needs.

Other key features include social media profiling.

SEON's AI and machine learning models adapt and improve over time. This makes fraud detection smarter.

Merchants should use SEON if they face recurring fraud and want to prevent chargebacks without limiting sales.

Its flexible pricing suits businesses of all sizes.

But smaller merchants might prefer simpler tools like NoFraud.

Compared to Signifyd, SEON offers more customization but less easy automated choices.

While Kount gives similar AI-driven insights, SEON focuses more on social data for detection.

Here’s the SEON app listing.

6. FraudLabs Pro: Best Fraud Scoring for Small Businesses

• Best for: Smaller businesses who don’t need many features
• Pricing:some text
  • Free: 500 queries monthly
  • Mini: $29.95/mo for 1,500 queries
  • Small: $99.95/mo for 5,000 queries
  • Medium: $249.95/mo for 25,000 queries
  • Large: $499.95/mo for 100k queries
  • Enterprise: $1,249/mo for 500k queries
• Features: some text
  • Bot detection
  • Fraud scanning
  • Fraud notifications

Pros:

• Very flexible fraud rules
• Supports two-factor authentication (2FA)
• Free for up to 500 transactions
• Real-time fraud scoring

‍

Cons:

• Hard to set up at first
• Less support for cheaper plans
• No chargeback guarantee

FraudLabs Pro Fraud Prevention suits merchants needing custom fraud prevention and 2FA at no cost.

It's flexible, letting users set specific fraud triggers based on:

• Transaction patterns
• IP geolocation
• Device fingerprints

The free plan helps small businesses needing basic fraud protection.

Also, its custom rule sets let merchants adjust fraud detection for their needs.

Other key features include social media checks, transaction speed checks, and blacklist checks.

FraudLabs Pro also supports SMS checks, adding security for sensitive transactions.

This helps businesses with frequent high-risk orders, ensuring customer identity before approval.

This app is key for merchants handling risky transactions or needing more control over fraud rules.

It's also good for businesses wanting cheap fraud prevention without chargeback guarantees.

Compared to NoFraud, Kount, SEON, and Signifyd, FraudLabs Pro offers a more customizable experience but lacks automated decisions or chargeback protection.

While its free plan suits small businesses, bigger merchants might prefer automated solutions like Kount or Signifyd.

Here’s where to find FraudLabs Pro.

7. Beacon: Best for Phone Number Lookups

• Best for: 
• Pricing: some text
  • $0.03 per order with a 14-day free trial
  • Enterprise: $750+/mo and $0.025 per order
• Features:some text
  • Chargeback alerts
  • Fraud notifications
  • Bot detection
  • Fraud scanning

Pros:

• Custom fraud filters
• Real-time fraud detection
• Auto order cancellations
• Phone number checks for verification

‍

Cons:

• Costs per order
• No chargeback guarantee
• Setup needs fine-tuning

Beacon suits folks needing custom fraud detection with real-time order analysis.

It checks key risk data like bad addresses, VOIP numbers, and CVV mismatches to stop fraud.

Users can adjust detection rules based on business needs.

This cuts false positives and prevents chargebacks.

A standout feature is phone number checks, which help verify customers by comparing data points.

This helps merchants with frequent high-risk orders by boosting confidence in customer checks, cutting order rejections.

Beacon also offers auto workflows, like canceling risky orders or holding them for manual review.

Other key features include tracking card fraud and account takeovers, helping merchants spot new fraud patterns.

Beacon is a better fit for merchants who need specific fraud protection settings.

Stop freakin’ and find Beacon here.

8. ClearSale: Best for Sellers in the US or Latin America

• Best for: Sellers in the US or Latin America
• Pricing: some text
  • KPI pricing
  • Performance-based pricing
  • Custom pricing
• Features: some text
  • ID verification
  • Fraud scanning
  • Chargeback alerts

Pros:

• Chargeback guarantee included
• Expert manual reviews
• Fewer false declines
• AI plus human checks

‍

Cons:

• Slow response for flagged transactions
• Unclear pricing
• Focuses on US and Latin America

ClearSale suits merchants wanting chargeback protection with expert manual transaction reviews.

It uses AI to spot odd transactions and follows up with expert manual reviews. 

This cuts false declines and helps businesses approve more orders.

Merchants wanting extra chargeback protection while keeping valid orders will like ClearSale.

As they also offer a chargeback guarantee.

Merchants who value expert oversight plus AI fraud detection should consider this tool.

It ensures careful checks for each flagged transaction.

ClearSale also offers deep risk analysis and advice. This helps merchants boost their store's performance and fraud prevention.

This extra support helps merchants looking for more than just fraud prevention.

While other apps rely heavily on automation, ClearSale balances tech and human insight for thorough fraud screening.

Wait:

Why did I recommend it only to folks in the USA and Latin America?

It mainly targets North and Latin American markets. It may not address new laws in places like the EU.

That’s all for the recommendations.

Stick around to learn why Shopify’s built-in fraud prevention might be good enough.

Get the ClearSale app here.

Shopify’s Built-In Fraud Prevention Works, Too

Shopify Fraud Protect is a free add-on for some Shopify orders. It checks order details to gauge transaction risk. If something's off, it alerts the merchant.

Think of this as a fraud scoring tool.

Wouldn’t this reduce the number of accepted orders?

Not really. Shopify claims it has a 99.7% acceptance rate [2]. Plus, you control what’s let through.

It’ll also refund chargeback fees on eligible Shop Pay orders.

Normal fees are $15 per dispute. This could save you money.

I explain more about this software in another guide.

Before checking it out, check out the eligibility requirements:

• Shopify Payments enabled
• Physical products
• "Fulfilled" status
• Shop Pay/Shopify Payments purchases
• "Protection Active" or "Protected" filters
• Valid tracking number from supported carrier

The “supported carriers” are:

Not eligible?

Consider other options or chargeback prevention methods.

For instance, chargeback alerts are one of the best ways to reduce disputes. We’ve seen them reduce chargeback rates for some digital product sellers by up to 91%.

We provide access to every alert on the market in one place. Learn how we can help.

Otherwise:

Tools like Order Insights and Consumer Clarity have reduced chargeback rates by up to 80% on eligible orders.

Here’s something else you could try.

Summary: It’s a fraud-scoring tool that refunds dispute fees on eligible orders.

Don’t Forget to Enable 3D Secure

3D Secure is a protocol that adds a layer of authentication for purchases. Requiring customers to receive a code to prove it’s them making a purchase. It cut credit card fraud by 40% in one study. [3].

It approves 95% of transactions instantly, with slight customer friction.

Anyway.

It's on by default in Shopify Payments. Other gateways may need setup.

Now you’re armed with a bunch of tools to combat fraud.

But are you using the right one?

Summary: 3D Secure adds two-factor authentication to orders. This helps verify customers’ identities.

What to Consider When Looking for Shopify Fraud Protection Apps

I’ll discuss the following factors to consider when searching for a fraud prevention app:

• Pricing: How much you’ll pay and pricing scheme
• Chargeback insurance: Refunds dispute fees and disputed order value
• Chargeback rate: Higher dispute rate requires more tools
• Your needs: Features

Keep reading for more depth in each of these areas.

1. Pricing

Most apps have free trials or tiers.

Smaller sellers obviously get the most benefit from the free tiers. Because they’ll scan a limited number of orders monthly.

You’ll need to start paying to get more protection.

Pricing schemes that I've seen include:

• Monthly fee
• Transaction percentage
• Gross Merchandise Value (GMV) percentage
• Per-order check
• Per approved transaction
• Custom pricing

Check whether the app you’re considering has setup costs, integration fees, or any other hidden expenses.

Also see if they have contracts. Most solutions that I reviewed don’t.

But they can change.

Now, we’ll need to know whether chargeback insurance is worth getting.

Summary: Pricing will vary by solution. Opt for pricing that your business can afford.

2. Chargeback Insurance

Some tools offer chargeback insurance/protection. This refunds chargeback fees and order values.

It’s a blessing for anyone who loses a lot through chargebacks.

Most apps only cover fraud-related disputes, not merchant errors.

But:

This also extends to friendly fraud, which makes up for 70% of all credit card fraud [4].

That leads to a potential issue.

Because Shopify refunds merchants chargeback fees if they win disputes. And sellers typically win 43.82% of friendly fraud chargebacks.

Much higher than the 30% industry-wide win rate.

Solutions usually charge a percentage of your order for chargeback insurance.

Thus, you’re paying for a perk that Shopify could have offered for free.

However:

Chargeback insurance will reimburse you whether you win or lose. Meaning that opting out of using it could become a gamble.

Weigh chargeback costs against insurance fees to decide.

Use this to determine whether it’s worth getting insured.

You’ll also need to know whether you should use fraud prevention apps at all.

Summary: Insurance reimburses you for eligible orders. It could cost you more than you save, though.

3. Your Chargeback Rate

Your chargeback rate will determine how much money you should put toward your tools. If your chargeback rate is under 0.5%, you’d be fine with only Shopify Fraud Protect, 3D Secure, and basic fraud protection.

As your rate approaches 1%, you’ll need to invest in more chargeback and fraud prevention methods.

Because this is the danger zone. Visa and other card networks will have placed you in their dispute monitoring programs.

These lead to huge fines — in the tens of thousands — and can result in you losing your ability to process orders.

It’s critical to do whatever’s necessary to lower your chargeback rate.

You might even need to combine some of the above tools, like:

• Order Insight and Consumer Clarity: Helps reduce friendly fraud.
• Chargeback alerts through Chargeback: Prevents pre-disputes from escalating.some text
  • Enable Ethoca Alerts, CDRN, and RDR.
• Fraud detection and screening through NoFraud.

This factor will in part contribute toward the next.

Summary: Don’t spend as much on tools if your chargeback rate is below 0.5%.

4. Your Needs

Needs equals features in this scenario. Look at your data to see what’s leading to the most fraud. From there, find an app that has your ideal perk.

Do you need blacklisting? Opt for an app with that.

How about chargeback insurance? Look for a solution that offers it.

I mentioned most of the current features for all of the reviewed apps.

Look deeper into each and see whether they’d make a difference in fraud prevention.

Otherwise.

Don’t download apps you don’t need.

Which brings me to the question, “Can we even trust Shopify apps?”

Summary: Look for an app that has features you need.

Can I Trust Shopify Apps?

Yes, you can trust Shopify apps downloaded through the Shopify App Store. They have dedicated partner specialists that review each app and ensure it meets strict criteria.

You shouldn’t download apps outside the app store. They won’t fall under Shopify’s protective umbrella.

Shopify also runs a Bug Bounty. It awards folks $50,000 to find vulnerabilities and exploits. Giving sellers more of a sense of security.

However:

Shopify has had times where they had to remove apps because they didn’t meet their “standards of trust and integrity.”

In 2021, they had a blog post telling readers they removed 1.5% of all apps in a week [5].

That means there are bad apples.

Then there’s the argument of “why is the app free?”

Usually this means the customer is the product (in a data sense). But with many of these apps I mentioned, they use the “free” part as a trial.

Or they’ll give you minimal access to free features. Then have a subscription for their better perks.

Use your best judgment when downloading apps. Investigate each solution before downloading.

That’s about it.

I hope you found a good Shopify app.

Summary: You can trust apps so long as they’re downloaded through the Shopify App Store.

Conclusion

Shopify offers free fraud protection on some orders. Otherwise, gauge your chargeback rate and causes to determine what apps would work best for your shop. Because you might be spending money on unnecessary tools.

If your dispute rate is high, you’ll also need chargeback alerts. These will let you know ahead of time whether a chargeback is coming. From there, you can prevent it by refunding the customers.

Going directly through the providers can cost more and is inconvenient. We offer volume pricing and give you access to Ethoca Alerts, CDRN, and RDR in one place.

Try us out.

Sources

• [1] Chargeback statistics. Clearly Payments. 
• [2] Fraud solutions. Shopify.
• [3] How 3D Secure can help. PYMNTS. 3/09/2022.
• [4] What is friendly fraud? Mastercard.
• [5] Trust Shopify apps. Shopify. 4/15/2021.