Shopify COD Fraud Prevention Guide
The complete guide for Pakistani Shopify stores: prevent COD fraud, integrate with local couriers, and optimize your checkout for the Pakistani market.
Why Pakistani Shopify Stores Need Special Fraud Protection
Unlike Western markets where credit cards dominate, 95% of Pakistani e-commerce is COD. Shopify's built-in fraud detection is designed for credit card fraud, not COD fraud. Pakistani stores face unique challenges: fake Jazz numbers, computer plaza fraud rings, and vague addresses that Shopify's default system can't catch.
The Problem with Default Shopify for Pakistan
❌ No Phone Verification
Shopify doesn't verify phone numbers. Scammers use fake Jazz/Zong numbers that go dead after ordering.
❌ No Address Validation
Shopify accepts vague addresses like "Street 5, DHA" with no house number. Courier can't deliver = return costs.
❌ No Pakistani Courier Integration
TCS, Leopards, BlueEx aren't in Shopify's default shipping. You need manual order forwarding.
❌ Credit Card Fraud Tools Only
Shopify's fraud analysis looks at IP, billing address, CVV - all irrelevant for COD orders.
Step-by-Step: Set Up Shippley on Shopify
Install Shippley App from Shopify App Store
Search "Shippley COD Fraud Prevention" in Shopify App Store and click "Add App". Installation takes 2 minutes.
Link: shopify.com/apps/shippley-cod-fraud-prevention (or search "Shippley" in your Shopify admin)
Connect Your Twilio Account (For Voice Calls)
Shippley uses your Twilio account to make AI verification calls. This keeps costs low (Rs 12 per call).
Don't have Twilio? We have a complete guide: How to Set Up Twilio for COD Verification
Configure Verification Settings
Choose Urdu, English, or Auto-Detect (recommended for Pakistani market)
Set to "Immediate" (within 5 minutes) for best fraud prevention
Verify all orders above Rs 2,000 (recommended Rs 1,500+)
Integrate with Pakistani Couriers
Connect TCS, Leopards, or BlueEx. Verified orders automatically forward to your courier's system.
Test with Sample Orders
Place 2-3 test COD orders using your own phone number. Verify AI calls you, confirms order, and marks it as verified in dashboard.
Optimize Your Shopify Checkout for Pakistan
1. Make Phone Number Required & Prominent
In Shopify Settings → Checkout → Customer Contact: Select "Phone number" as required field. Add helper text: "آپ کا فون نمبر آرڈر کنفرم کرنے کے لیے ضروری ہے" (Your phone number is required to confirm order).
2. Add "Complete Address Required" Note
Add custom HTML to checkout page: "مکمل پتہ درج کریں (گھر/فلیٹ نمبر ضروری) - Complete address required (House/Flat number mandatory)"
3. Display Total Price Including Delivery
Enable "Show delivery costs at checkout" and display prominently: "کل رقم (پروڈکٹ + ڈلیوری) - Total Amount (Product + Delivery)"
4. Add WhatsApp Contact Button
Add WhatsApp chat widget for pre-purchase questions. Reduces "didn't understand product" returns by 20%.
Common Shopify COD Settings Mistakes
❌ Mistake: Optional Phone Numbers
If phone isn't required, scammers enter fake numbers. Always make it mandatory.
❌ Mistake: Auto-Fulfilling COD Orders
Never auto-fulfill. Wait for verification before marking "fulfilled" and shipping.
❌ Mistake: No Delivery Fee
Free shipping sounds good but attracts more fake orders. Charge Rs 150-200 delivery.
❌ Mistake: Accepting P.O. Box Addresses
Disable P.O. Box deliveries. They're high-fraud and couriers charge extra for them.
Real Results: Pakistani Shopify Stores
Case Study: Lahore Fashion Boutique (Shopify Store)
- • 45% fraud rate on COD orders
- • Manually calling 200+ customers monthly
- • Rs 280K monthly losses
- • 2 full-time staff for verification
- • 7% fraud rate (87% reduction)
- • 100% automated verification
- • Rs 48K monthly costs (400 orders × Rs 12)
- • Zero verification staff needed
Ready to Secure Your Shopify Store?
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