Shopify charges for refunds?

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I had a customer order almost $6,000 in product and then emailed and cancelled the order.  I was billed today for over $150 from Shopify because they won't refund the credit card processing charge.  Is this correct?  If so, how do I migrate all my websites from Shopify to another platform that doesn't extract unnecessary charges like this?

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Hey @waterglider99

 

This is correct, yes. They do not refund the credit card processing charge. 

 

They facilitate the transaction to go through, do fraud prevention, ensure that the transaction is secure (i.e. your customer's credit card info is safe), and also have developers working around the clock to make sure that your customers can order from your store 24/7 - these employees need to be paid. 

 

Other platforms won't be different since whoever your payment processor is will always take a % of every transaction and will not refund it if your customer makes a return. 

 

 

Warm regards,
Sharon 

 

 

Co-Founder / CEO @ Intuitive Shipping
Execute a strategic approach to shipping | Intuitive Shipping | Automate Shipping Profiles
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Shopify and card processing merchants are taking advantage of refund situations.  While the vendor pays 100% back to the customer, Shopify and card merchants keep the initial transaction fee.  For large orders, the amount is significant.  For example, Leviosa sells motorized shades and home automation systems where our average transaction is $3000+.  For order cancellations, the fee we still must pay is~$90.  This is patently unfair, but Shopify and card merchants are not motivated to change it.  This money-grab is new from 2019.

 

However, Shopify vendors have recourse:  promote payment by check.  As an example, Leviosa now promotes 2% additional discount to customers who pay by check.  Customers are more encouraged to buy with the extra discount, which does not cost Leviosa anything as we avoid paying Shopify and merchants at all.  In fact, Leviosa actually makes a few extra dollars.  Sure, many customers still want to pay by credit card, but 15%+ are choosing to pay by check, cutting Shopify out of the payment process, and minimizing some refund fee risk.  Check processing happens instantly as customers email us pictures of check front and back, which are then transferred electronically to our bank via common check deposit Apps nearly every bank now offers.  No snail mail - Easy, and quick.   We estimate Shopify and card merchants stand to lose $15,000 in fees alone from Leviosa this year - against refund fee charges of $1000.   Small peanuts to them, but when other Shopify vendors promote similar systems, maybe they will see their short-sighted venture.  And while they should revert back to a more fair refund fee policy anyway - we will continue promoting check acceptance - our customers love discounts!  A shame Shopify vendors have to plot to cut Shopify and card merchants out of the process - but their greed has unintended (and unprofitable) ramifications.

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