New Member
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I have been very happy with Shopify as a platform & primarily use Shopify Payments  for 98% of our orders.  I have been happy with the quick payments, the platform in general.  

I have been teetering at the 1-2% chargeback line off and on since starting with Shopify and most of the time the chargebacks are customers trying to get out of our return policy which is clearly spelled out.  

I had a message from Shopify a few days ago that my chargebacks are too high and they were going to restrict my account to a 30 day payout or cut me off.    I cannot run a business getting payouts monthly - this is not an option.  

This is what I don't get - You don't loose any money - WE DO - you immediately recoop 100% of the chargeback directly from your customer AND your fee of $15.  We loose everything every time and you loose nothing and have been fully reimbursed in full.  We then may or may not ever see that money again - AND now in my case I have my shopify payments account limited and maybe cut off - I  don't get it.  I don't see how this is a WIN for your customers at all ?   

I read all the posts on this forum and I have accepted paypal, amazon and a bunch of other platforms over the past 10 years and they all have their drawbacks ... it's just part of doing business online to KNOW you are going to loose money here and there.  

I have found Shopify to be very fair in the past and they have overturned many chargebacks when I have provided proof of delivery or circumstances.   Lately that is just not working anymore and I don't feel it is fair to expect or FORCE online retailers stay at 1% when it is just about impossible to keep every transaction from filing or every customer happy no matter what.  

I run a fair business treating customers as I would want to be treated myself as a buyer.  I do have special order items which people chargeback on for no good reason, I have customers that don't like the color and don't want to pay to send it back or pay the restocking fee, I have customers that keep the product and file a chargeback stating they never received it or did not approve it... many reasons.   I sell specialty items for the most part - not run of the mill things.  

I would love a real solution so I can keep receiving payments & focus on my business and products.  I don't want to be cut off I am very happy with Shopify and would highly recommend and HAVE.  I just need a solution so I can focus on making great products and keeping my business operating.  

SHOPIFY ...  just charge me more ...  why is there not a higher risk checkout option?   I have a stable track record and I am a long term customer - you know my volume and my percentages.       If you feel the need to penalize me and charge me more then let me know ... give me some options.  I need to keep getting paid, paid quickly and keep trucking.  

SHOPIFY ... Would it not be more realistic to expect online retailers to have a certain % of chargebacks and if necessary just put a small rolling reserve on accounts  or something fair to you and managable to the customer ?    If their chargebacks are 3% you could put a rolling reserve of 5% which would more then cover any and all potential losses.  

I KNOW I can't be the only retailer going through this and would love to find out what others have found as a viable solution.   

I must say it is a real kick in the teeth to have BOTH chargebacks and totally lost revenue AND potential to loose your merchant account over people that just don't want to pay for their order - and in my case HAVE THE PRODUCT.  

Any advise greatly appreciated and I would be happy to give any help I can to anyone else. 

Online Kitchen & Bath Fixture Seller
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I also want to know.

New Member
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I also am currently having a really financially significant chargeback issue.  We make custom high quality animal cages and completed a custom design to a lady who received the product and asked for one modification to which we said yes and yet she filed a chargeback for $4500 which was immediately taken from our small business account.  I had tons of documentation to present in my defense but when I went to upload it, found that there is a 2MB limit on any paperwork and so I had to cut my defense against this fraudulent chargeback in half and submitted it anyway feeling confident given we have an airtight terms & conditions that clearly states no returns of any kind on custom items.  Shopify let us know that the bank had decided to side with the customer and that we had no further options.  So the customer has the very expensive cage in her home using it for her pet monkeys and we lost all the money for the order, were charged for the experience (and I let the customer pay in 3 installments and so I was hit with 3 chargeback fees).  At this point, I am super frustrated as to not have any way demonstrate a large body of evidence that proves that this lady deliberately wanted this expensive cage at no cost and there is absolutely no damage or defect at all.  All she had to type was PRODUCT UNACCEPTABLE and I submitted pages of proof.  Can you please tell me who the actual Merchant Services provider is?  Why can I not get a Merchant ID# or a Case Number for this huge loss from Shopify?  Surely this cannot be my only option.  I have no information with which to even go outside of Shopify with to pursue the money that was taken from my account.  Please...any help would be very helpful as this is happening in real time.  

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To clarify a couple incorrect statements from Shopify staff, banks DO make money by robbing merchants on their rotten customer's behalf. The law is there to protect card holders even when it is THEM who are committing fraud by claiming they didnt make the purchase. It's in the bank's interest to just pocket your $15 and take back their customer's money. This is called friendly fraud. I had a customer who bought 40 times over 8 months and charged back 12 of those and even though shopify didnt raise any warnings and the fact that the billing address matches the bank info AND the shipments went to that address their greedy ass of a bank ruled in their favor. Call it what it is; digital shoplifting! Shopify should be liable because they are the payment provider who allowed the charge through but sadly that isnt how it works. HOWEVER, shopify has a responsibility to provide bank contact information to a merchant so we can escalate the dispute because in my case, its complete BS. Instead shopify washes its hands and shrugs at us. I have had payment gateways in the past on other businesses and I ALWAYS had the option to call them with a transaction ID to get the contact info for the financial institution providing a customer's card. Shopify is simply LYING that they cant or wont do this and I'm going to be looking into the fair practice and truth in credit laws about access of information because I'm fairly certain shopify is violating the law here in not providing a means to contact the bank who picks our pockets in these cases. Also I will be investigating migrating my service elsewhere which I'm sure shopify won't care about even though we are supposedly in the top 2% of stores opened this year, but whatever.

To my fellow merchants; the only recourse is to write off the product and fees as theft (shrinkage) on your taxes. Until US law is changed to more fairly protect small business you and I are pretty much screwed. Its not worth the time ir energy to contest to this degree and these scumbag fraudsters know it and use the "protect the bank and customer" laws to their advantage.
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So I just want to make sure Im understanding this, I ship out goods, (that I worked my a$$ off to create) only to have  someone commit fraud because they want the item AND don't want to pay for it?, we prove that they received the goods only to have the money RIPPED out of our bank? This sounds borderline like a COP-OUT especially if the customer receives the item.

So we're out the money "and the merchandise" how does a small business that's starting out even survive without the support of Shopify. Can I just place "ZELLE" as an alternative for payment? This is nuts. I haven't had a chargeback yet, but Im reading a lot of negatives on this issue, we will launch soon and now I'm not so sure. 


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Wow, this is scary. So what happens if I dump Shopify and use a different web service all-together?  I do have that option and I'm considering it. Is there another bank service that is more aggressive against fraudsters? PLEASE POST!!!

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The problem is that this is internationally regulated as far as I know. The governments have given banks the sole authority to determine if a charge is fraud or not; add the fact that they are allowed to charge merchants a $15 fee ON TOP of stealing back their rotten customer's money for them, and they have absolutely NO incentive whatsoever to rule in your favor. You won't escape this reality going to a different e-commerce platform unless they have built in guarantees, and none of them that I've looked at do. Only if you make hundreds of thousands of dollars in sales every month will you qualify for the fraud protections offered by the third party companies (because of course Shopify doesn't guarantee or protect you on their own, god forbid), and by that point, charge backs happens so rarely anyways that it's not worth the cost nor do you really even need the protections at that point because it's not worth your time to waste making a case that these scam artist banks will just ignore anyways. Cut your losses, write off the fee as THEFT and move on.

The only alternative is to stop giving Shopify a cut by removing their worthless card processing option and only use PayPal, Apple Pay, etc which all have express checkout options that let people use their credit cards even if they don't have an account with them. The problem is that Shopify will then take 0.5% of ALL your sales (not just the 2.5% of the ones they process) if you do not use their processing services. Since 80% of our sales come through PayPal anyways, if we did this, we'd actually be doing Shopify a favor (which is the last thing I want to do). The amount of fraud charge backs that hit us do not equal or exceed the amount of added income that Shopify would gain by kicking their worthless card processing service to the curb.

The entire system is utterly corrupt. Multiple communications with the fraudsters, names on the account that match their credit card account, billing address right in the transaction record that matches the delivery address you have confirmed tracking numbers for AND the fact that as$hole customer didn't dispute ALL charges made with that credit card with you, just some of them and these shysters STILL pick our pockets makes me want to firebomb.

Ultimately I think that Shopify should be held accountable for ALL chargebacks that their system fails to flag as potentially risky. These dumbasses ONLY seem to flag my legitimate past customers and only part of the time anyways, so their algorithm is crap anyways. Their advice for verifying a transaction is also a complete joke. Every method they suggest of contacting your customer and asking them to verify doesn't prove a thing and even with a photo ID provided by that customer, these banks will still screw us over.

So your best bet is to stick with things as they are, unless your charge backs with fees and merch loss are greater than 1/2 of 1% of your total sales. If they are, then kick Shopify's merchant processing to the curb and rely on PayPal which is MUCH more protective of merchants. Verify that the credit card transaction report (found in a drop down on the transaction history) shows that the billing address matches the shipping address, and cancel any transactions to foreign countries which do not show the billing info in the card transaction report (Mexico, Philippines, etc), or require them to use PayPal and not credit cards.

Also consider writing to your congress-people (I have) and advocate that they work to change the banking regulations that the online merchants who have no way to verify online purchasers, are not held liable for charge backs when it is the job of the merchant provider to screen the processing of cards. The merchant processing company should be liable for the fees from the banks.


Ultimately though as frustrating as the situation is, you are not likely to get many fraud charge backs. We do about $200k a year in sales and have probably only had 4 charge backs in the 2 years we've been up (only 1 was ruled in our favor btw), at a loss of about $400 total collectively I would guess. So it's not business breaking, just "faith in humanity" breaking lol.