This is an accepted solution.
I'm sorry to hear you got a chargeback. Shopify's payment system is handled by Stripe, so it's really up to Stripe to dispute the chargeback on your behalf. As you have already mentioned that you have already refunded the order, you should not have an issue resolving the case quickly and even have your chargeback fees In any, refunded.
If you refunded only after receiving the chargeback, then it could cause issues with the case and you often will have to let the payment gateway provider know that you are willing the close the case by refunding them. Most chargeback cases can take up to 1 week to resolve.
In addition, Shopify has a basic fraud analysis. I recommend you look into that if you haven't, yet.
Shopify is way out of the industry norm on this. I had someone order a book and it was delivered. I have proof of delivery from the post office. Shopify has a fully automated system that they use for chargebacks and effectively they don't get involved. As a result I lost the case and was charge their punitive $15 penalty fee. Their support in this area is comical, the support agents have no clue what they are talking about and their responses don't make any sense and are contradictory.
I also sell through eBay, Amazon and another website run through Bigcommerce where I use paypal as my merchant processor. In all instances if you have proof of delivery you always win a dispute when the customer says they haven't received an item. Shopify believes they are best in class with their payments platform but they are way out of synch with the rest of the industry.
This is something they need to fix and not give cute responses to on their forum or when you ask for help.
The other thing I would suggest doing, which Shopify doesn't highlight very much is simply turn off Shopify payments as an option. You can turn on paypal or other providers who will treat you more fairly.
100% agree. Refunded a customer for an order minus the freight because the customer typed in the wrong address and the order was returned to us. The customer then initiated a chargeback a week later and Shopify took the full amount. We lost the chargeback and the customer got the initial refund plus the total amount of the order.
THIS IS BS SHOPIFY.
You mention the Shopify Fraud app. From what I have been able to ascertain it is good for stopping cards from other countries yet it fails miserably when trying to get it to warn about failed CVC/AVS as most of the settings seem to be reactive rather than proactive. i.e. you can stop fraud once you have the CC number or other details that further orders can be matched to.
Would you mind giving some examples of how you have set this up.