we are dealing with a chargeback order of a customer from the US.
The customer was identified as high risk fraud by the shopify system.
We sell digital items and they are fulfilled automatically seconds after the customers purchase so there was no possibility to not fullfill.
Of course the customer has bought an exceptionally high amount of products and also has downloaded them all.
In addition to that we were also charged with $60 of banking fees of the credit card company because of the chargeback.
We have disputed this with evidence but a lot of people are not familiar with digital items. There are no shipping labels that we can provide, just screenshots of the downloads.
How high is our chance of winning this case or should we bury our hopes?
Is there anybody here who has won a case like that?
Thanks to everybody,
Sorry to hear about your recent issue with fraudulent order. Your timing is impeccable because I was just in the middle of writing out a blog article on how to deal with a chargeback.
Winning a chargeback case is tough already and I can't imagine digital items where you have no shipping label is even tougher, but it's not impossible. We had some clients win cases on digital items, but the result varies from the Payment provider to payment provider. You should always treat it as a loss so that you do not place expectations too high.
With this said here is a simple guide on what you should do in order.
First step: Analyze the order (The Situation):
What does the default Shopify fraud analysis is shown in the detail section? IP address, Location, Failed payment attempts, etc... Learn what caused this customer to file a chargeback. Collect as much data as you can and learn about the situation.
Second Step: Attempt to Contact the directly customer:
You really have two options on trying to hear from the customer first and see what you can learn. You can contact them by phone or email and to make sure if the order was not made directly from the original account holder of the payment.
Third step: Prepare your documents for submission:
Prepare a letter to your payment gateway to refute the chargeback:
Things you should include:
Proof of shipping or screenshot of your timeline. This should also include the date and time of when the system delivered and sent out the order by email.
Fourth step: Shopify Fraud prevention:
I'm with the app, Beacon (link below). Where you really should have fraud protection in place that can block this bad customer from making a repeat purchase. You should also set up a manual payment capture system through Shopify and have a fraud system auto-capture and filter out risky orders/good orders. You can read more about it here. https://blog.lizuna.com/how-to-configure-your-shopify-settings-to-better-reduce-fraud-orders/
I hope this helps you just a tiny bit.