What are best practices for fraud screening and mitigation?

While fraud against retailers on the Locally platform is exceedingly rare, accepting online payments always includes a degree of risk. Fraud screening is the responsibility of the participating retailer. Please educate yourself on recommended fraud protection best practices and the tools available from Stripe, the payment processor you use to process all Locally payments. Locally does not take responsibility for losses due to fraudulent charges. 

Shopper Protocol

On orders for store pickup, Locally recommends you check the ID and credit card of the shopper at pickup to confirm their identity. The shopper’s name, credit card type, and credit card last four digits are available on every Locally order screen. The shopper is reminded to bring their ID/credit card during pickup in the order email notification they receive from Locally when their order is confirmed. 

On orders for same-day delivery, you have the option to require a signature at drop-off, or require the shopper show the courier their ID. If you have selected these options, we recommend you remind shoppers of these requirements in your order messaging so they are ready to be present or show their ID. 

Fraud Protection with Stripe 

To accept payments on Locally, you use Stripe. Fraud protection is incorporated into every online payment processed by Stripe. Every Stripe merchant account includes Stripe Radar, which is Stripe’s default fraud protection product. 

Stripe Radar automatically assigns a risk assessment score of 1-100 on every attempted payment. If the score is below a 75, Stripe will block the attempt and the shopper will not be able to complete their Locally checkout. Because the order is blocked, you aren't alerted if this occurs, but you can view any "blocked" attempts in the "Payments" section of your Stripe dashboard.  

Any retailer who wishes to have more advanced options to fine-tune the fraud protection services offered by Stripe can activate Stripe’s “Radar for Fraud Teams” add-on, for a price of 2 cents per transaction.

Whatever settings you enable on Stripe's "Radar for Fraud Teams" will automatically be applied to the Locally cart. You can activate this at any time via your Stripe dashboard. 

Handling Disputes

While exceedingly rare, if a shopper initiates a formal dispute against you, you'll work with Stripe and their guided dispute resolution process within your Stripe dashboard (https://dashboard.stripe.com/disputes). Locally is not involved with the dispute process.

If you have any questions on fraud protection, disputes, and more, please contact stripe at https://support.stripe.com/?contact


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