We will no longer return the original Shopify Payments fee collected when a refund is processed

Savvy_Paul
Shopify Partner
117 0 22

"We will no longer return the original Shopify Payments fee collected when a refund is processed. This is consistent with our existing Shopify Payments Terms of Service and unlike other payment processors, we will not charge an additional fee for processing a refund."

Recommendations for other providers, who don't charge the full fee for refunded transactions, please. Even if it means also leaving the Shopify platform (after 13 years). Are there any?

I'm in the high-end clothing trade. A high-ish number of returns is inevitable, but then the items sell again (and Shopify gets their full fee, anyway). Now they want double bubble, which will cost me thousands each year.

TIA,

Paul

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ShannonClark
Tourist
6 0 44

I’d like to know this too. I’m in a high end beauty market and get a lot of returns. This is a huge deal for my business. It’ll easily cost me thousands each year as well. 

I know PayPal is still refunding the fee but I wonder about other selling platforms. Shopify has really gone downhill lately in my opinion on their customer service side of things. 

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joideas4
New Member
2 0 1

This really effects UK merchants as we are legally obliged to refund the full amount.  UK merchants are also not allowed refund less processing fee or to charge a processing fee at time of purchase.

I do not want to leave Shopify.  Please can you reconsider this punitive fee?  

 

Savvy_Paul
Shopify Partner
117 0 22

It's just good, old fashioned abuse of power.

Stop taking Shopify payments? We'll hit you with a transaction fee, which will cost you 4 times as much as swallowing this fees increase.

A world pandemic, and this is how Shopify is 'supporting' small merchants.

 

CuddleScape
New Member
1 0 1

I spent a long time researching ecommerce platforms prior to selecting Shopify. Unfortunately hosted systems always have high fees of various kinds associated with them and self hosted systems are often so buggy that you'll end up spending all your time trying to make them work, or you need to pay someone to optimize and maintain your shop system which ends up being more expensive than these fees anyway.

So because the customer for some reason decides to cancel their order, that is now supposed to be the merchant's expense? Gee, thank you Shopify. Make the customer pay for their decision instead! At least that would be fair.

Oblotzky
Tourist
8 0 5

I was also not very pleased reading this E-Mail last night. I get multiple refund requests per week on fresh orders before they have shipped out, there is nothing wrong with a customer changing their mind about their purchase. Each of those would end up costing me 5€ or so on average, for simply canceling someones order, that doesn't seem fair to me.

Additionally, I had to cancel 5 orders this morning for being fraudulent, I already received a chargeback on another one from the same address but different name (for which I now have to pay 15€ in fees on top because it was totally my fault this person is using a stolen CC or so, god knows why vendors receive the blame for that instead of the banks for not doing a proper verification, I'm already loosing the money on the stuff I already shipped out). Canceling those 5 orders would have cost me 40€ or so in lost transaction fees if it was after the date this new rule goes into effect, all because I wanted to protect myself from fraudulent orders and as such even more chargeback fees? What's the purpose of a transaction fee if it doesn't cover expenses that happen due to transactions?

I really appreciate what Shopify has built, but changes like this makes me really unhappy as a customer of them.