Appreciate the reply. I'm not talking about the chargeback process, I'm talking about preventing fraud in the first place (customer screening).
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I understand where you're coming from, but unfortunately chargeback fines are also fairly standard. They're passed down to us by our bank, regardless of the outcome of the chargeback (win or lose).
As a matter of fact, Shopify Payments is quite rare in that we return the chargeback fine should you win your dispute. This is not a fine that is reimbursed to us, so we're actually taking a hit when we do this.
It's a small gesture of appreciation to merchants who work hard at winning their disputes.
Unfortunately, this is how the card brands (Visa/MasterCard...) have decided to implement their fees and penalties.
In terms of refunding a transaction, that is only possible before the transaction has been charged back. The moment the chargeback takes place, the customer has been given the money by their bank. Therefore, payments systems will prevent you from refunding after a chargeback is received to ensure that the customer is not given extra money.
Sorry to hear about the chargeback pain y'all have been experiencing - hopefully it's lessened over the last few months.
I work for Sift Science, a startup that in my opinion, is THE BEST solution in the Shopify App store. We've applied large scale machine learning, the same technology that Amazon, Google, and Apple use to detect fraud, to the masses. Many Shopify merchants have found that Sift works very well, either independent of the Shopify tool, or in conjunction with it.
Your first 30 days with Sift are always free and your first 10,000 transactions/month are also free.
Hope to fight your fraud soon!
I've just got a chargeback. It's an absurd, despite suffering a fraud following all the steps recommended by Shopify and still have to pay a $15 fee. If it's a fraud or whatever, I'm ok with the chargeback, we have to pay attention indeed. But why the fee?? Absolutely INSANE. Looking for another website creator in 3, 2, 1 ... Bank and Shopify getting richer more and more and small business owners getting screwed. Not fair. Shopify, can you prove me that this 15$ goes 100% to the bank??
We have had more Chargebacks this month as well. This change is due to the New Credit Laws that were recently updated. We use Paypal and there is no way around a chargeback any more. In years past we would be able to dispute and win the case, but now more than ever we are not able to recover the sale. The Credit Card Companies are to blame and are siding with their customers, no matter what the circumstances are. Our Site www.threehipchicks.com only offers customized items. Customer have the audacity to claim fraud when their items have their monograms and names on them! When we lose a claim not only are we out the money from the sale, but also the merchandise! There needs to be a law requiring that the customer return the items prior to refunding. At this time they are required to send the purchase back after the funds are removed but the Credit Card companies are not enforcing the return of merchandise. I call it the new white collar crime. Most of the time it is buyers remorse. Its wrong.
One other thing to mention. I was told by PayPal Pro that owing and operating a online store is now considered high risk and they are less likely to back store owners. Pretty absurd considering the fees they collect from us. I have in the past negotiated for large chargebacks to recover the loss from PayPal as a courtesy ( We are tier one business )and worth noting for any of your folks using Paypal.