Real-time fraud prevention plugin reducing payment fraud by 45% for Shopify/Magento merchants through AI analysis of 50+ risk signals with under 1ms latency at checkout.
CheckoutShield addresses the critical pain point of payment fraud for small-to-medium eCommerce businesses. This AI-powered solution integrates directly into popular platforms like Shopify and Magento, analyzing transaction patterns, device fingerprints, and behavioral biometrics in real-time. With CNP fraud projected to grow 25% YoY, the solution offers enterprise-grade protection at SMB-friendly pricing through tiered SaaS plans.
1. Core Functionality
Real-time AI fraud detection analyzing 50+ risk signals including:
- Transaction pattern anomalies
- Device fingerprint verification
- IP geolocation discrepancies
- Behavioral biometric analysis
- Historical fraud pattern matching
Seamless checkout integration with <1ms latency, configurable manual review thresholds, and automated blocking of suspicious transactions.
2. Target User and Segment
Primary customers:
- Shopify/Magento/WooCommerce merchants
- Processing €5k-€500k monthly revenue
- Concentrated in fashion electronics, luxury goods, and CPG subscription boxes
- Operating primarily in EU/NA markets
3. Recommended Tech Stack
- AI Engine: Python (TensorFlow/Keras)
- Backend: Node.js + Redis for real-time scoring
- Database: AWS DynamoDB
- Frontend: React dashboard
- Infrastructure: AWS Lambda (serverless)
- Integrations: Shopify API/Magento extensions
4. Estimated MVP Hours and Costs
Development at €100/hour:
- Backend: 220h (€22,000)
- AI Engine: 180h (€18,000)
- Platform Integrations: 120h (€12,000)
- Dashboard: 150h (€15,000)
- Total MVP Cost: €67,000
5. SWOT-analysis
- Strengths: Proprietary detection algorithms, zero checkout friction
- Weaknesses: Limited initial payment processor integrations
- Opportunities: 25% YoY growth in card-not-present fraud
- Threats: Payment gateways developing native fraud tools
6. First 1000 Customers Strategy
- Freemium Tier: €0 CPA for merchants under 100 transactions/month
- App Store Placement: €15k launch promotion on Shopify App Store (40% acquisition)
- Affiliate Program: €50/signup CPA for eCommerce agencies (30% acquisition)
- LinkedIn Ads: €35 CPA targeting SMB owners (30% acquisition)
7. Monetization
Pricing Tiers:
- Starter: €49/mo (500 transactions)
- Growth: €199/mo (5,000 transactions)
- Enterprise: Custom pricing
Financial Projections:
- Break-even: 540 paying users
- Core Team Costs: €180k/year (1 ML engineer, 1 full-stack dev, 0.5 CX support)
- Revenue Share Model: Avoided to maintain margin integrity
8. Market Positioning and Competitors
TAM: €620M fraud prevention market for SMBs (EU+NA)
Competitive Landscape:
- Signifyd (enterprise focus)
- Riskified (high-volume specialists)
Differentiation: Specialized for 5k-20k order/month merchants with granular false-positive controls and no revenue-sharing requirements. Sales strategy combines self-serve onboarding with partner channel development.
