I have some products that i was dropshipping and all of a sudden the list raised the price for shipping like crazy now it is not worth purchasing the product at all. Shopify has deposited the customers money into my account. I am probably going to refund 10 clients since shipping got so high. I was wondering how does that work? since my balance is 0 currently. I am currently testing other products. Do i just refund from shopify and they will withdraw the funds from my bank account or?
Ash here from the Shopify team. Welcome to the Shopify Community!
I'm sorry to hear of the situation you ran into. I'd love to get some more context behind this. Where exactly did you see the increase in shipping cost for these products? Was this from the suppliers end?
As for the refunds, that would depend on what payment provider you used to process the payments. I see you mentioned that Shopify deposited the money into your account, so I assume Shopify Payments was used, but please reply back to this post and correct me if that is not right.
Assuming Shopify Payments was the gateway used, then you can simply process the refunds directly through the order pages in the admin. When a refund is processed on Shopify Payments, the funds are immediately sent back to the customer's credit card. Initially, Shopify fronts the funds for the refund so that the funds are returned to the customer as quickly as possible and to ensure we're adhering to banking industry standards/best practices. Shopify then reclaims those funds from your next payout.
I hope this helps answer your questions, and please let me know if there's anything else I can clear up.
That is a totally fair concern! If you used Shopify Payments to process the payments you're planning to refund, then there is no need to worry. As I explained in my previous reply, when you process a refund for orders originally paid via Shopify Payments, Shopify fronts the funds for the refund, and then reclaims those funds from your next payout(s).
I just want to clarify however, was Shopify Payments used, or did you process the payments in question via a third-party payment provider? If a third-party payment provider was used, then I would suggest contacting them directly for further insights on their refund process.
Ash here from the Shopify Team. Great question, and welcome to Shopify Community and to this thread!
If a merchant owes Shopify money due to refunds or chargebacks and is no longer making sales, then a negative payout (debit) will be created. This is why one of the bank account requirements to use Shopify Payments is that the account must be set up to allow for debits. I hope this helps clear that up, and let me know if you have any other questions around Shopify Payments, payouts, or anything else!