I run a mid-sized store on shopify that sells a childrens toy, slime. I recently got a chargeback for a product that was delivered to the consumer about 2 weeks ago.
The sale checked all the boxes for a legitimate charge, and it was delivered to the address registered by the cardholder. They never contacted me before charging back, claiming it was fraud.
Considering it's a childrens toy and it was delivered to the correct address, I think the most likely case scenerio is that the card owners child bought the product without the card owners authorization (and/or they simply didn't want to pay for it after the fact). It's extremely unlikely somebody would steal a card and then use it for a purchase of a kids toy to their own house.
In order to keep this thread on track and to the point, please do not tell me "how to prevent against fraud", because there is literally nothing else I could have done in this situation other than not allow credit cards -- that's not what I'm asking here.
My question is simple: Is there any legal precedent here that will help me win the case?
There is no screenshots or additional information to provide, all I have is the purchase going through and checking all the security measures. I tried to look up "who's responsible for a childs chargeback" (which one website dubbed "friendly fraud"), and the answer was relatively ambiguous. Another website claimed that the "Truth in Lending Act" says consumers are liable for the first $50 of a fraudulent purchase (and my sale was $49) -- but I have no idea if that's applicable at all. Also, I obviously can't "prove" it was their child, even though it's the most reasonable thing to assume.
So, is there any precedent here, and what are my chances of winning? I know the answer will likely be "might as well try to fight it", but if I lose 99% of the time, I'm actually losing even more money as I'd rather just save the time and grant the charge back. Is this just the unfortunate reality of e-commerce sales? We get screwed at some percentage of the time and there's no recourse?