Paypal Customer Chargebacks

50 2 2


I got a question regarding charge backs via Paypal. I sell customized items in my store, and state in the policies, that after the item has been started to be customized, it can't be refunded. Is that enough to stop Paypal from claiming a charge back? How does Paypal handle this? 

Shopify Staff
Shopify Staff
369 42 80

Hi, @SachaBC!


I'm Miles from the Social Care team at Shopify.


I'm going to give you a broad answer to your question; but for PayPal's specific process, you'll be best to reach out to them directly.


Chargebacks occur when a customer contacts their bank or credit card provider to reverse a transaction on the account. A customer can do this without contacting the business first, which can cause stress for a merchant. We have a simple setup for managing chargebacks, which I've outlined below.


If a chargeback is raised on a Shopify order, you'll receive a notification in your order dashboard. Inside this notification, you will be able to submit evidence that you either ship the product; have a policy stating why you haven't shipped a certain product or even communications with your customer if those communications exist. Once a chargeback is raised, we'll hold the disputed amount until the chargeback is completed.


From there, the customers' bank will investigate the customers' claim and your evidence before making a decision. If the chargeback is successful, the customer will receive their money back. If it is unsuccessful, we'll release the funds back to you.


To answer your initial question; if a customer raises a chargeback, Shopify (and other providers) are required to raise the investigation. This means we could not reject a chargeback, but you'll have ample time to submit evidence for the chargeback.


As I mentioned above, for PayPal specific information, I would suggest reaching out to them. In the meantime, I have found PayPal's chargeback FAQ's which might help you answer that question:


If you have any questions at all, please let me know.


Have a great day!

Miles | Social Care @ Shopify 
 - Was my reply helpful? Click Like to let me know! 
 - Was your question answered? Mark it as an Accepted Solution
 - To learn more visit the Shopify Help Center or the Shopify Blog