How To Use FraudLabs Pro To Reduce Chargebacks And Fake Orders In WooCommerce

FraudLabs Pro is one of those tools you install because one bad week makes you feel a little sick. We have seen it: a “great sales day” turns into refund emails, Stripe disputes, and a shipping team packing boxes for orders that were never real.

Quick answer: you use FraudLabs Pro to screen WooCommerce orders, score risk, and route each order to approve, review, or reject. You keep humans in the loop, you log decisions, and you tune rules so you stop fraud without blocking good customers.

If you want less chargeback stress and fewer fake orders, here is the setup and workflow we use with clients on WordPress and WooCommerce.

What FraudLabs Pro Does (And What It Does Not)

FraudLabs Pro checks orders for fraud signals and then gives you a fraud score plus a recommended action. That score changes how your store handles the order. A higher score raises risk. A lower score clears the path.

FraudLabs Pro does not take payments. It does not replace Stripe, PayPal, Authorize.net, or your bank. It sits in the workflow as a screening step so you can slow down risky orders before you ship product or deliver a digital file.

Fraud Screening Vs. Payment Processing

Fraud screening reduces chargebacks by catching patterns your payment processor may not stop. Payment processing moves money from buyer to merchant.

Here is how we map it in plain steps:

1. Customer places an order in WooCommerce.
2. WooCommerce collects checkout details.
3. FraudLabs Pro screens the order and returns a fraud score.
4. Your store workflow decides: auto-approve, hold for review, or reject.
5. Your team fulfills only orders you trust.

FraudLabs Pro -> affects -> order handling. That single link matters because it cuts off the “ship first, regret later” pattern.

What Data FraudLabs Pro Checks

FraudLabs Pro checks the parts of an order that often show lies or mismatches. You can screen with the plugin or the API, but the signal set stays similar.

Common checks include:

• IP geolocation and proxy/VPN checks (location mismatch drives risk)
• Email checks (disposable email raises risk)
• Phone checks (invalid or mismatched phone raises risk)
• Billing and shipping mismatch (high mismatch raises risk)
• Credit card BIN data (country or issuer mismatch raises risk)
• Device fingerprinting (repeat risky devices raise risk)
• Velocity checks (too many attempts in a short time raises risk)
• Blacklists and allowlists (known bad actors raise risk, known good buyers lower risk)

A simple way to think about it: mismatch -> affects -> fraud score. And fraud score -> affects -> whether you ship.

Set Up Your FraudLabs Pro Account And API Key

Account setup is quick, but we treat the API key like a password. If someone steals it, they can burn your validation quota or pull data you never meant to share.

Choose A Plan And Create A Workspace For Your Store

FraudLabs Pro offers a free tier (commonly used for low-volume stores) and paid plans for higher volume and advanced features. For many WooCommerce shops, the free plan is enough to pilot the workflow and prove you reduce chargebacks.

What we do:

• Create one workspace per store (one WooCommerce site equals one workspace).
• Name it clearly, like brandname-woocommerce-prod.
• Start with defaults. Do not create 30 rules on day one.

Workspace -> affects -> clean reporting. It also reduces human error when you manage more than one site.

Generate, Store, And Rotate Your API Key Safely

In the FraudLabs Pro dashboard, you generate an API key for your workspace. Then you store it safely.

Our rules of thumb:

• Put the key in a secure location (password manager, secrets vault, or hosting environment variables).
• Do not paste API keys into Slack, email, or docs.
• Rotate the key on a schedule, and rotate it immediately after staff changes.

API key hygiene -> affects -> breach risk. This is boring work. It also saves you from 2 a.m. incident cleanup.

If you run WordPress with a team, we also recommend two basics on the site side:

• Limit who can install plugins and edit settings.
• Keep WordPress updated and run security monitoring.

On Zuleika LLC’s side, this pairs well with our WordPress security services when a store wants a single owner for updates, access control, and audit trails.

Connect FraudLabs Pro To Your Store (WooCommerce And Other Common Stacks)

Connection is where most stores either win fast or get stuck. Keep the goal simple: get a fraud score into WooCommerce, then act on it.

WooCommerce Integration Options: Plugin Vs. Custom Hook

You have two common routes.

Option 1: Use the WooCommerce plugin

• Fastest setup
• Good defaults
• Usually supports pre-check and post-check workflows
• Sends you into “workflows and settings” instead of “code and logs”

Option 2: Use a custom API hook

• Best when you need special order logic
• Lets you screen at a precise moment (example: after payment authorization but before fulfillment)
• Lets you write your own decision engine (score thresholds, tags, holds)

We often build custom logic with WordPress hooks like woocommerce_checkout_order_processed or woocommerce_payment_complete, depending on how you want the workflow to behave.

Plugin -> affects -> speed. Custom code -> affects -> control.

Test The Connection In Staging Before Going Live

Test in staging. Every time.

A safe test plan looks like this:

1. Clone your site to staging.
2. Install and configure FraudLabs Pro.
3. Place 5 to 10 test orders with varied inputs (different emails, IPs via a VPN, different shipping addresses).
4. Confirm you see the fraud score and the recommended action.
5. Confirm the store does the right thing (hold vs complete vs cancel).

Staging tests -> affect -> fewer production surprises. Your fulfillment team will thank you.

If you do not have staging, fix that first. We set up staging environments as part of our WordPress maintenance and hosting support because “test on production” usually ends in refunds.

Configure Screening Rules, Scores, And Decision Outcomes

Rules are where FraudLabs Pro turns from “interesting score” into “fewer chargebacks.” You want clear outcomes, not endless debates.

Pick A Baseline Workflow: Approve, Review, Reject

Start with three lanes:

• Approve: low risk score, order flows through.
• Review: medium risk score, order goes on hold.
• Reject: high risk score, order cancels or blocks.

We usually start conservative:

• Approve: low score
• Review: middle score
• Reject: only the highest risk band

Why? False positives hurt. A blocked good customer -> affects -> lost revenue and support tickets.

For digital goods, we often tighten the thresholds because fraudsters love instant delivery.

Add Rules For High-Risk Signals (IP, Email, BIN, Velocity)

After baseline thresholds, add a few rules with a real business reason.

Good early rules:

• Proxy or anonymizer detected -> raise risk
• Disposable email -> raise risk
• BIN country does not match billing country -> raise risk
• High order velocity (many orders from the same IP or device) -> raise risk
• Shipping to freight forwarder -> raise risk (depends on your market)

One rule -> affects -> fewer fake orders. Too many rules -> affects -> chaos.

Keep a short list at first, then tune based on what you see in real orders.

Set Up Allowlists And Blocklists Without Locking Out Good Customers

Allowlists and blocklists feel satisfying. They can also backfire.

Use allowlists for:

• Known repeat buyers
• Corporate domains you trust
• Internal testing accounts

Use blocklists for:

• Repeat fraud emails
• Known bad IPs (but be careful, IPs change)
• Patterns tied to confirmed chargebacks

Blocklist -> affects -> risk. It can also affect good customers if you get too aggressive.

We keep a simple rule: only block after you confirm fraud. And we always log why the block exists.

Operational Workflow: Handling Reviews, Refunds, And Chargebacks

Tools do not stop fraud. Workflows stop fraud. FraudLabs Pro just gives you the signals.

Build A Simple Review SOP For Your Team

A review SOP keeps your team consistent, even on busy days.

Here is a simple review checklist we use:

1. Check FraudLabs Pro fraud score and reason codes.
2. Compare billing and shipping names.
3. Check IP location vs shipping location.
4. Search customer email in past orders.
5. If still unsure, send a verification email or request an ID check (only if your policy allows it).
6. Decide: approve, refund, or cancel.

SOP -> affects -> speed and consistency. It also reduces “gut feeling” decisions.

Log Decisions And Reasons For Auditability

Logging sounds dull until a customer complains or a processor asks questions.

Log these fields:

• Order ID
• FraudLabs Pro fraud score
• Decision (approve, hold, cancel)
• Reason (proxy, mismatch, velocity)
• Reviewer name
• Timestamp

Decision logs -> affect -> accountability. They also help you tune rules without guessing.

If you want this inside WordPress, we often add custom order notes and a simple admin field set. If you want it outside WordPress, Google Sheets or Airtable works fine, as long as you control access.

Tune, Monitor, And Automate With Guardrails

Fraud patterns change. Your store also changes. So you tune.

Track False Positives, Acceptance Rate, And Chargeback Rate

Track three numbers monthly:

• False positives (good orders you blocked)
• Acceptance rate (approved orders divided by total orders)
• Chargeback rate (chargebacks divided by transactions)

False positives -> affect -> revenue. Chargebacks -> affect -> Stripe account health and fees.

If your review queue grows, tighten the review SOP before you add more rules. Most teams skip that step and then wonder why nothing feels stable.

Automate Notifications And Holds Using Zapier/Make Or Webhooks

Automation helps when you keep guardrails.

Common automations:

• FraudLabs Pro review status -> sends Slack or email to the order review team
• High fraud score -> auto-add WooCommerce order note and set status to On Hold
• Rejected order -> trigger refund workflow (only after human check)

Webhooks or Zapier/Make -> affect -> response time. They also affect risk if you let automation cancel orders without review.

We like “shadow mode” at first: send alerts, but keep humans deciding. Then you automate the safe parts.

If you want help building these flows around WordPress, we often pair fraud screening with our WooCommerce development services so the store logic, notifications, and logging stay consistent.

Privacy, Compliance, And Data Minimization For Fraud Screening

Fraud screening touches customer data. You need boundaries.

What Not To Send And How To Mask Sensitive Fields

Send only what FraudLabs Pro needs to score risk.

Do not send:

• Full credit card numbers
• CVV codes
• Extra personal notes from customers
• Medical, legal, or financial details that do not belong in fraud screening

Data minimization -> affects -> privacy risk.

If your workflow stores logs, mask what you can. Example: store last 4 digits of a card, not the full number. Also lock down who can view fraud notes inside WooCommerce.

Disclosures, Retention, And Human Oversight In Regulated Industries

If you work in healthcare, finance, legal services, or insurance, keep humans in the loop. Do not let an automated fraud score become the only reason you deny service.

Steps we recommend:

• Add a short disclosure in your checkout policy that you screen orders for fraud.
• Define retention rules for fraud review logs (who can access them, how long you keep them).
• Create an escalation path for edge cases.

Policy -> affects -> trust. Oversight -> affects -> fewer unfair blocks.

For US businesses, the FTC guidance on endorsements and consumer transparency also reinforces a simple principle: say what you do, and do what you say.

Conclusion

FraudLabs Pro works best when you treat it like a screening layer, not a magic button. You connect it to WooCommerce, you start with a simple approve-review-reject workflow, and you tune based on real outcomes.

If you want the safest path, start small: run FraudLabs Pro in a review-first mode for two weeks, log every decision, then tighten rules based on what your store actually sees.

When you are ready, we can help you map the whole flow, from WooCommerce checkout to notifications, logs, and role-based access, so you reduce chargebacks without turning your store into a maze.

Frequently Asked Questions: How To Use FraudLabs Pro

How to use FraudLabs Pro with WooCommerce to reduce chargebacks?

To use FraudLabs Pro with WooCommerce, connect it via the plugin or API, then screen each order to get a fraud score and recommended action. Route orders into approve, review, or reject lanes so your team fulfills only trusted orders and disputes drop over time.

What does FraudLabs Pro do (and what does it not do) in an online store workflow?

FraudLabs Pro screens orders for fraud signals and returns a risk score plus a suggested action, which your store uses to approve, hold, or reject orders. It does not process payments or replace Stripe/PayPal—it simply adds a fraud-screening step before you ship goods or deliver downloads.

What data does FraudLabs Pro check to calculate a fraud score?

FraudLabs Pro typically checks IP geolocation and proxy/VPN use, email and phone validity, billing vs shipping mismatches, credit card BIN/issuer country, device fingerprinting, velocity (many attempts quickly), and blocklists/allowlists. The more mismatches or repeat-risk patterns, the higher the fraud score.

Should I integrate FraudLabs Pro using the WooCommerce plugin or a custom API hook?

Use the WooCommerce plugin for the fastest setup and solid defaults, especially when you want simple scoring and order holds. Choose a custom API hook if you need precise timing (e.g., after authorization, before fulfillment) or custom decision logic using score thresholds and tags.

What’s the best way to set approve, review, and reject thresholds in FraudLabs Pro?

Start conservative: auto-approve low scores, hold medium scores for human review, and reject only the highest-risk band to avoid false positives. For digital goods, tighter thresholds often make sense because instant delivery attracts fraud. Tune monthly using false positives, acceptance rate, and chargeback rate.

Can I automate FraudLabs Pro review alerts and order holds without accidentally blocking good customers?

Yes. Use webhooks, Zapier, or Make to notify your review team, add WooCommerce order notes, or set high-risk orders to “On Hold.” Start in “shadow mode” (alerts only) so humans decide first, then automate only the safest actions once your rules and SOP are stable.