Need help with chargeback

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Excursionist
52 0 11

customer placed order on 13 April, before we'd even processed it she opened a chargeback(within 3 days). 

 

Then on April 23rd, another chargeback was opened and I was deducted yet more money, this is now x2. Then today a third chargeback was opened and quickly decided in my favour;

 

So i'm completely lost as to what to do? I've had the amount deducted from my account twice. So what exactly is the procedure here?

Screenshot 2020-05-13 at 14.50.16.png

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Shopify Staff
Shopify Staff
560 59 108

Hi @paul-

 

Hyde here from Shopify.

 

Chargebacks are infuriating and frustrating. We've all been there. Here is some more information on chargebacks for you to go over.

The issue is that as soon as you've accepted money from a customer, they can place a claim with their bank. Regardless of whether you've even had a chance to look at the order.

So there's little that can be done retroactively when you receive a chargeback. Really with any online store, your best recourse is preventative: trying to prevent orders being placed on your store that are potentially fraudulent.

Your best way of doing this is a combination of Shopify's own fraud analysis algorithm, which cross-references billing and shipping addresses with card details and names to try to ascertain the credibility of the buyer, your own investigative efforts by using our Fraud Prevention Tips and using the Fraud Filter app.

 

You could also set your check out to not automatically capture the payment until you've had a chance to review the order to decide whether it seems legitimate or not:

20-05-wbb86-s7hcj

 

I hope this helps,

All the best, Hyde.

Hyde | Social Care @ Shopify 
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Shopify Partner
43 0 9

Hi @Hyde 


Thanks so much for the detailed explanation, I've gotten a lot of questions from other merchants about how to handle suspicious orders.

Can you explain a bit further on the manual payment capturing process?

For example, as a customer when I complete checkout and provide my payment details, will I need to re-enter them in order for a merchant with "manual processing" enabled?

You shouldn't have to think about fraud on your Shopify store.
Ask me about
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Shopify Staff
Shopify Staff
560 59 108

Hi Dylan, 

When a merchant opts to manually accept orders as opposed to automatically accepting them, this makes no difference to the customer's experience when checking out. Customers complete checkout as normal, but the payment isn't authorized until the merchant decides as much. 

It's worth noting that there is an authorization period. Meaning that you will need to accept payments within a stipulated time, as they cannot be held indefinitely. There's more on that here

I hope that helps!

All the best, Hyde. 


Hyde | Social Care @ Shopify 
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New Member
2 0 0

They don't provided you with any support. All Shopify will do is "forward" your evidence to the bank and of course the bank will side with their customer. I lost over $700 last month with Shopify detection as low. Shipping address was resident. I called Shopify and they said, I quote " it is your responsibility and your own risk". I asked they so they pretty much provide a service take a percentage then take more money for fee with chargeback but they don't at least represent their retailer for any after service problem and they actually told me "yes". They support is charge you for more fee take the money back forward your evident and let the customer bank to side with their customer. 

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Shopify Staff
Shopify Staff
560 59 108

Chargebacks can happen, but we provide numerous ways and means of safeguarding against them, as linked above. 

Ultimately we do not manage orders for our merchants, so all we can do is notify you of suspicious orders flagged by our algorithms in order to help you decide whether you still want to proceed with processing the order or not. Naturally, some orders may escape our algorithms, which is why we also provide advice on how to recognise dubious orders so that you can double-check for yourself. 

Shopify does not charge a fee for the chargeback. That fee is levelled by the bank. We do provide whatever information we can in behalf of the storeowner, as explained above, and Shopify does not benefit from chargebacks in anyway shape or form

Shopify provides a platform for storeowners to start an online business, but we do not run the business for you. Our role with banks is purely transactional, and our role with our storeowners is to advise you as best as we can. 

I hope this clarifies matters. 

All the best, Hyde.

 

 

Hyde | Social Care @ Shopify 
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New Member
2 0 0
Hi Hyde,

No it doesn't clarify this matter at all. This is not about you managing
order for retailers but it is the service provided by Shopify. Shopify took
a percentage and transaction fee per transaction. Shopify then take another
fee for the chargeback. So what is the fee in the beginning for? process
the sale? if so you are on our behalf taking payment from but yet you can
represent us to at least voice our side for chargeback. Your service does
not extend to anything other than and I quote from one of your team was "
all we can do is pass the evidence to the bank". We don't even know if the
bank even look closely at the evidence or if any criteria was checked
before simply reply " the bank side with customer" so what is the point of
submitting all the evidence when we don't even know why the bank side with
the customer and not us. We don't even get one line explaining what and how
we went wrong. So let me ask again what is the after service Shopify can
provide us when using their payment gateway.

Also you mentioned to double check ourselve so explain to me what other
measure we can use to double check when we have
1. Shopify analysis indicator was "low"
2. Customer's address is residential
4. Repeated sale
5. customer name match card user name?

On top of this we also have photo of products sent, photo of
parcel/packing, courier company tracking details and invoice. Like what
else could we have done? What else can we check for? or double check for?
Does this mean we have to contact every single customer that used credit
card payment with us and ask them to provide ID for every transaction?
Instead of providing a safe and a piece of mind payment solution I'm
getting stressed out every single time I see a transaction paid through
Shopify payment gateway. Mind you this was not the first time but every
single month I would have this problem reoccur. Losing $700 a month is no
fun at all.
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