FraudLabs Pro plugin allows user to decide if the fraud validation is to be performed before or after the payment process, and Validation Order is where you can configure this option. There are pros and cons to each approach, and how it will affect the payment process being handled by the WooCommerce platform. In the below section, we will show you the pros and the cons of each option, so that you can select the right option for your online business.

1st Option: Before Submit Order To Payment Gateway

As the option indicated, the system will carry out the fraud checking before an order is sent to the payment gateway. If FraudLabs Pro returns the APPROVE or REVIEW status, the order will proceed as usual to the payment gateway for payment capturing. If FraudLabs Pro returns the REJECT status, the checkout transaction will be halted from continuing to the payment gateway. Hence, if you would like to halt the payment from completion, you need to select the REJECT action in your validation rule. Please note that even the payment gateway process was halt for REJECT scenario, the order will still be created in WooCommerce as according to the ordering-flow in WooCommerce. Just that it’s an unpaid order. Anyway, the order status will be updated as according to the status configured in the plugin settings page, under “Approve Status”, “Review Status”, or “Reject Status” option.

Pros

• It is able to stop the payment process if the order failed the validation.
• Will not incur payment processing fee or refund as the validation take place before the payment gateway.

Cons

• If the order was put on hold by FraudLabs Pro, the payment details will be lost. If the order was a legitimate order after your review, you have to manually contact the client for the payment again.

2nd Option: After Submit Order To Payment Gateway

The system will only perform the fraud checking after the payment gateway. This means the amount has been captured before the fraud validation is performed by FraudLabs Pro.

Similar to the first option, the order status will be changed according to the status set in the plugin setting page.

Pros

• The payment will be either authorized or captured first before the validation.
• If the order is later found out to be suspicious, you just need to manually void or refund the payment. No need to contact the client for payment related matter as described in 1st option.

Cons

• If the order failed the validation, a refund or cancellation has to be done manually from the payment gateway provider. This issue can be solved by using the authorize-only approach, you may visit How to on hold a fraud order on WooCommerce for details.

Out of this 2 options, we will recommend that you use the 2nd option with authorize-only approach for the validation whenever possible.