The Hidden Risks of $0 Products and Orders

As an eCommerce merchant, you may have encountered an unusual phenomenon: orders with a total of $0. While these orders might seem harmless — or even ignorable — they can signal deeper problems within your operations and pose risks to your business. While seemingly harmless, $0 orders can serve as an entry point for broader payment fraud schemes, such as card testing and promo abuse. The global cost of online payment fraud is expected to reach $206 billion by 2025, underlining the urgency for merchants to identify and address these vulnerabilities. Let’s break down why $0 orders occur, their impact, and how to prevent them.

$0 orders often stem from specific behaviors or vulnerabilities in your system. Common reasons include:

1. Exploitation of free gift products: Many stores use free gifts as promotional tools (e.g., “Spend $100 and unlock a free gift”). Fraudsters, however, can manipulate this system by locating the $0 gift product — often using web crawlers — and adding it directly to their cart. In some cases, they’ll exploit this vulnerability to add hundreds of free gifts, paying only minimal shipping fees (like $10). 
2. Bundling configurations: Some stores create $0 items as part of product bundles. For example, when a customer orders a set of pans or a multi-item kit, individual components may initially appear as $0 items to facilitate proper bundling during checkout. While intentional, these $0 products can sometimes be exploited if not properly protected.
3. Card testing by fraudsters using your checkout process to test stolen credit card details. Card testing is a significant concern in eCommerce, with 33% of merchants reporting it as a common form of fraud. A $0 order is a way to confirm whether a card is active without triggering fraud alerts.
4. Abuse of promo codes or gift cards from shoppers exploiting loopholes in your discounts or gift card settings, resulting in $0 checkout amounts.
5. System errors or workflow configuration issues in your eCommerce platform can inadvertently allow $0 orders to be processed, which can also enable abusers to receive products for free. For example, some merchants have reported instances where hidden products, which were not intended to be available for purchase, were accessed and checked out without an “add to cart” button. These situations can be difficult to diagnose and often require adjustments to settings, such as shipping or checkout configurations, to resolve the issue and stop bogus orders effectively.
6. Genuine customers accidentally placing $0 orders when navigating free trials, free samples, or other $0 offers.

The immediate consequences of $0 orders may seem minor, but the underlying risks can escalate quickly and result in:

• Fraudulent chargebacks: If fraudsters successfully test stolen card details, they’ll use the card elsewhere, potentially leading to disputes and chargebacks.
• Skewed analytics: A surge of $0 orders can distort your sales and operational data, affecting inventory management and forecasting.
• Increased operational costs: Handling and investigating $0 orders wastes time and resources that could be better spent on genuine customers.
• Reputational damage: Customers might lose trust in your platform if they perceive it as insecure or prone to errors.

While occasional $0 orders might occur naturally, persistent or unusual patterns indicate a bigger issue. Watch for these red flags:

• A sudden increase in the volume of $0 orders, particularly within a short timeframe.
• A pattern of $0 orders originating from the same geographic area or IP address range.
• Multiple payment attempts with slight variations in card details, indicating potential card testing.
• Promo codes being applied in unintended ways to bypass payment. Promo abuse is on the rise, aligning with the broader growth of first-party fraud and abuse. According to a recent MRC survey, 63% of the 1,100 merchants surveyed reported an uptick in first-party misuse over the past year.

Ignoring $0 orders can have significant repercussions that go well beyond the immediate inconvenience. Financial losses can quickly accumulate due to chargeback fees and even account suspensions from payment processors. Refund fraud and related schemes contribute to a staggering annual cost of up to $101 billion for U.S. merchants. Beyond the financial impact, compromised security poses a serious threat, as successful card testing often escalates to further fraud, such as account takeovers or high-dollar fraudulent transactions. These issues also create operational bottlenecks, forcing your team to dedicate valuable time to investigating suspicious activity instead of focusing on growth initiatives. Moreover, legitimate customers may lose trust in your platform if they perceive it as insecure, leading to lost sales and diminished brand loyalty.

Preventing $0 orders requires a proactive and layered approach. By addressing fraud risks and operational inefficiencies, you can safeguard your shop against these types of issues. Here are some key strategies to help you prevent $0 orders effectively.

Implement Solutions That Prevent Card Testing and Promo Code Abuse

Invest in a robust fraud prevention solution like NoFraud that can help detect and block suspicious activities, including card testing and promo code abuse, before they escalate into larger problems. These tools leverage advanced algorithms and human expertise to ensure your platform is secure without adding friction for legitimate customers.

Review Workflow Configurations

Often, vulnerabilities arise from overlooked system configurations. Conduct a thorough review of your checkout process, payment settings, and promotional rules to identify gaps. For example, ensure hidden products are not accessible, and review how shipping settings handle $0 orders. Small adjustments to these workflows can significantly reduce exposure to fraudulent activity.

Monitor Promo Code Usage

Promo codes are a frequent target for abuse. Regularly audit their usage to detect patterns of misuse. Set clear parameters for how and when promo codes can be applied, and consider implementing limits to prevent them from being exploited for $0 checkouts. This step can also help maintain the integrity of your promotional campaigns.

Block Repeat Offenders

Fraudulent activity often comes from a small group of repeat offenders. Use your fraud prevention tools to flag and block suspicious accounts, IP addresses, or devices that show consistent signs of abuse. By proactively identifying and restricting access, you can reduce the frequency of $0 orders and other fraudulent behavior.

$0 orders are more than a minor annoyance — they can be a gateway to significant operational, financial, and reputational challenges. By staying vigilant and proactively addressing vulnerabilities, you can protect your business and maintain trust with your customers.

If you’re looking for a comprehensive fraud prevention solution, NoFraud can help. With tools to identify and stop suspicious activity before it impacts your bottom line, NoFraud enables merchants to grow confidently without compromising the customer experience.