Solutions against claims from customers when using Canada Post !

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New Member
18 0 0

HELP !  I am located in Canada and use Canada Post for standard shipping.   I have just had my first claim dispute with Paypal from a customer that said he did not receive his package.  Paypal has requested a tracking number and that I prove that the package was delivered.  Most of my orders are sent by Standard shipping, without any tracking, so I could not provide that information, so Paypal reimbursed the customer.  I lost 100$.  Since I am a small business owner, presently that is a lot, 10% of my monthly earnings.  So I cannot hold long if I have too many claims like that.  I talked to Canada Post and they did not want to offer any advice.  'Just go on the website, all the information is there'.  Since there are SO many online entrepreneurs in Canada out there, I wonder how they get to overcome this obstacle.  I cannot just offer tracking shipments, they are 3 times more expansive and I will lose a lot of customers. 

Please let me know if some of you want to share how you deal with this.  As I understand, anyone can buy something sent by standard using Canada Post, and you just need to say to Paypal or Visa that you did not receive your order, and BAM ! automatic refunded.  I know a lot people do not do this, but I am really discouraged how easy it is for a customer to win a claim and that Canada Post did not at least implement a system where we can print a note saying that a package with this address was well received at a Canada Post office and was really shipped to protect us. 

Solutions would be really grateful !

Thanks for your help !

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Shopify Staff (Retired)
Shopify Staff (Retired)
99 0 5

Hi Karine,

First of all, I'm sorry to hear you are having a difficult time with this. Unfortunately this is one of the downfalls of selling online.

I completely understand where you are coming from with this one. You want to make sure that this order is legitimate as it is vital for your business.  We have a number of different ways to check orders against fraudulent activity, but in terms of reaching out to card providers, if we were to do this for all flagged orders, it just wouldn't be feasible. 

First of all, to add tracking information you can do so by following this document https://help.shopify.com/manual/orders/status-tracking/add-a-tracking-number-while-fulfilling-an-ord.... I'm not too sure the process Canada post have, but if you wanted to check out our carrier calculated shipping, it will provide you with tracking numbers automatically https://help.shopify.com/manual/shipping/rates-and-methods/carriers

In terms of fraudulent orders,we realise you cannot eliminate all chargebacks, but there are some very easy ways to spot fraudulent orders and mitigate the risk to yourself and your business.

When reviewing orders be sure to look at the Billing Address and Shipping Address. If the billing address is in the United States, but the shipping address is in a country such as Pakistan or Russia, you may have a fraudulent order. Other things to look for are names between shipping/billing being different or the billing address not matching what is on file with the credit card company.

We now offer a detailed risk analysis section for each order. Please make sure to visit your orders page in your dashboard and look for any with red or yellow exclamation points. You should see an associated risk level and by clicking the 'full risk analysis' link you will be able to see the reasons we believe there could be some risk associated with those orders.

Any time you see a flag set on the account for any reason you should be careful to verify the customer via telephone before shipping anything out. It's better to be on the safe side than risk high chargeback rates which can cause losses on multiple levels. If possible, it's worth doing this on every order but we realize that can be difficult. That is why we try to provide you with the information and tools you need to make an educated decision on whether or not to ship your products.

If you would like to get even more in depth with your fraud prevention methods, you can also implement one of the many fraud prevention apps we have available via the Shopify App Store such as:

Free Fraud Filter -> https://apps.shopify.com/fraud-filter
Sift Science -> https://apps.shopify.com/sift-science
Signifyd -> http://apps.shopify.com/signifyd

It might also be worth taking a look at this article on how to force the shipping address and billing address to match on customer orders: Matching Shipping and Billing Address.

Also, make sure to at least enable rejection for orders that fail CVV by logging in to your account and then go to settings -> payments -> 'edit' under the Shopify Payments tab. From there click the checkbox for 'Decline charges that fail CVV verification.' and it would also be worthwhile clicking 'Decline charges that fail ZIP code verification.'

Hope that helps!

Shauna

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Excursionist
68 0 4

Karine Paquet - When you say that you ship by Canada Post "Standard Shipping" (non-tracked) - which actual service are you talking about?

Just 'Letter Post' - or - "Small Packet"?

If it's just "Letter Post" within Canada - I fear there is little that you can do - but - if it's "Small Packet - USA" or "Small Packet - International" - then I have suggestions for you (we have had the same problem)

Nick

Founder (Former CEO) of ActionFront Data Recovery Labs. Sold to Seagate Technologies in 2005 and happily "retired" at age 52. Now manage 4 x Shopify store fronts.
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New Member
18 0 0

Yes Nick, I am talking about Small Packet - International.  If you can help me, please !   And I would be really grateful.   :)  Because this side of the business freaks me out !  Thanks !

 

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Excursionist
68 0 4

I 'think' that I can help you with that.

Most of what we ship is within Canada by Expedited Parcel (if you have a small business account - it's the same price as Regular Parcel). The labels that we print out - have a big number '2' in the top right hand corner.  Whenever I take my packages to the Post Office - they scan in the bar code (expedited is a tracked service) - and although they do not give me a receipt (none is produced) - by the time that I get home - the tracking info shows - "Shipment received at originating postal facility" (with the date and time that I dropped it off)  So it's in the system. Tracking info starts out (before you drop if off) as saying only "Electronic information submitted by shipper"

Now – as for Small Packet “Air” (both US and International) – the label we print out has a big number “1” in the top right corner.  EVERY SINGLE TIME that I take Small Packet shipping to the Post Office (we only use it on occasion) – the Postal Clerk (at both Canada Post and/or postal drop-offs like Shopper’s Drug Mart) – tell me the same thing.  “We don’t scan those – they don’t have tracking.” - THEY ARE WRONG (at least about not scanning)

If you “make” them scan it (usually against their will - I have had to really insist a few times) – a screen will pop-up and the Postal Clerk will say (sometimes snarkily – lol) – “Oh, that’s new!”

They then scan your package in – and are required to enter either the Zip Code – or Country of Destination from your label.  When they finish or hit the enter button – it gives them the option to print a receipt.  You will then get a receipt that shows your package was accepted by the post office. 

The receipt should look like this -

Canada Post Small Packet Receipt

Most postal clerks only enter/scan one package at a time and produce separate receipts for each – but they can actually scan, one after another – each of your packages (entering the Zip / Country codes) – and then give you a single receipt that lists all of them. (but not everyone knows about that)

Hopefully Paypal or Visa would accept that as proof that the package was dispatched (?)

As for Small Packet “Surface” – we don’t use that at all – but I have been assured that it operates on the same system (i.e. optionally scannable and receiptable) as Small Packet “Air”

If you go to a regular Post Office - they will soon enough get to know you - and scan your "Small Packet" shipments for you - as well as the "Expedited Parcel" ones.  There are two separate and independent programs/systems on their terminal. 

Nick

(Sorry for being so long winded – it’s who I am - but hopefully this info is of some help to you and others)

Founder (Former CEO) of ActionFront Data Recovery Labs. Sold to Seagate Technologies in 2005 and happily "retired" at age 52. Now manage 4 x Shopify store fronts.
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New Member
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Actually, Nick, that was a very good explanation !  I sent out my first parcels last week, starting with just a few to see how it works and also to see how that will go with customs.  So, for the receipt  you mentioned, I got that when I went to the post office and thought that it would serve to 'prove' that I sent the package.  But when I called Post Canada, althought I will probably call again, because the one I got was rude and not wanting to help, but with what he told me is that the code does nothing.  If Paypal asks for proof, you cannot say that UR150883933CA is associated with (this is an example) 24 Dupont road, Paris, 581365.  And that is what is so frustrating.  If they would have invested just a little more in the system, it would be great to have each code associated with the address in a neat pdf document or such, so that if the customer ask or Paypal, we can say, YEah, here is the receipt that I sent this package to this address on this day.  But no. And in the online system, we can only see the postal code, so we cannot say we wrote the exact same address given by the customer.  It would be wonderful if that would change.  And I guess not a lot of business asks for this. 

The only solution I can see is to only offer tracking parcels.  For now, since I am just starting, it will cost 30$ and eventually, with the rebates, it should be 20$, but still a lot of international customers will find 20$ too expansive and I was hoping to give them the non-tracking parcels at 10$.  I know that I am losing a lot of customers at checkout and for me, it's because the shipping is at 20$, so I am again in the situation where I have to weight more sales vs more risk.  One claim equals for me 10 orders.  But I only have like 60 orders per month at the moment.

Thanks Nick for your help !  It is really appreciated.  Would wish that Post Canada be better.

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New Member
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Its now 2019, I haven’t opened my store as yet and i can already see this issue arising, I have personally shipped stuff to Jamaica using Small Packet International and they never arrived and no tracking was every provided. So I am very sure it will cause an issue for my business. 2019, problem still not resolved
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Shopify Partner
555 1 19

Just to update this here, whether it is Expedited Parcel or Small Packet Air, in both cases, your labels can be scanned and you will get a tracking number after scanning them. Once you have a tracking number, you can always, follow its course of delivery via the Canada Post website. This becomes much easier when you are using a solution like the Multi Carrier Shipping label app. For every Canada Post tracking number generated, the app will show you the real time status of the package. So if you have to prove no delivery, then you can just show the tracking and ask logs from the team to show as evidence. 

Product Owner @ PluginHive
Shipping Automation | FedEx shipping | Multi-carrier shipping | Shipment Tracking | Australia Post shipping
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