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Will gifting a product create charge backs and orders flagged as fraudulent?
Will gifting a product create charge backs and orders flagged as fraudulent?

No! Find out why Givy's gifting doesn't flag orders as suspicious

Updated over a week ago

We're happy to see that you're thinking about preventing chargebacks and other issues you might encounter with your payment processor.

What Causes Chargebacks?

As you probably know, lots of things may cause chargebacks. One common reason why a credit card charge might be reversed is if the billing address and shipping address don't match at checkout.

This could be interpreted as fraudulent because scammers would want to send their stolen products to their own address, which does not match the stolen credit card's billing address.

What Does Givy Do Differently?

When a product is gifted to a recipient, the initial customer is not required to provide a shipping address for the gifted product. If only the gifted product is included at checkout, then they don't need to enter any shipping address. If the customer is purchasing other products at the same time, they would include the address where they want the products to be shipped - and this is likely the same as their billing address.

How Does the Recipient Select an Address?

When the recipient redeems their gift, they are sent to a brand new checkout, completely unrelated to the initial customer's checkout.

At this point, the recipient will enter their real shipping address. There isn't any billing information to enter in most cases, so there is no risk of flagging this order as being fraudulent.

What Do Other Gifting Apps Do?

Well, most other gifting apps do suggest entering the recipient's shipping address at checkout. This is a bad idea for many reasons:

  • It can cause the order to be flagged as suspicious

  • The purchaser might have the wrong address and send the gift to a stranger

  • It doesn't allow the recipient to track their delivery

  • It doesn't give the recipient a chance to learn about your store

  • It doesn't give your store a new customer for marketing purposes

  • It increases the odds of a chargeback

Overall, it's simply not worth asking customers to enter a recipient's information at checkout.

We hope this helps!

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