3.8.3 - How to Use Your Chargeback Prevention Toolkit for E-commerce Payments (Difficulty: Advanced | Path: Scale)

How to Use 3D-Secure, AVS & CVV Settings

What are they? These are the three core automated checks in your payment processor. They are your first and best line of defense, and they should be enabled by default.

• CVV (Card Verification Code): Checks the 3-4 digit security code on the back of the card.
• AVS (Address Verification System): Checks if the billing address & ZIP/postcode entered by the customer match what the bank has on file.
• 3D-Secure (e.g., 'Verified by Visa' / 'Shopify Protect'): An extra step where the customer's bank sends them a one-time passcode (e.g., via text message) to approve the purchase.

Why are they important? They are simple, automated fraud checks. AVS and CVV checks are your basic filter. 3D-Secure is your strongest tool, as it often creates a 'liability shift'—if a 3D-Secure check passes and the order *still* turns out to be fraud, the bank is liable for the chargeback, not you!

Beginner's Best Practice

Go into your Settings > Payments > Shopify Payments > Manage section. In the 'Fraud prevention' section, make sure the boxes for 'Decline charges that fail CVV verification' and 'Decline charges that fail AVS zip code verification' are CHECKED. This is a 10-second fix that can save you thousands of dollars. 3D-Secure is generally enabled automatically on Shopify's checkout.