Being charged for fraudulent order

MMVCREATOR
Tourist
3 0 3

Looking for help... Shopify support has not contacted me back.... But their charging me for two orders they flagged fraudulent.  New to eCommerce, happy i got a sale, i approved the first order, then the same day refunded the order. With not much help from shopify, they froze my store and 15 days later they unfroze it and said i owe for a charge back. 

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Miles
Shopify Staff
Shopify Staff
469 67 109

Hi, @MMVCREATOR!

 

I'm Miles from the Social Care team at Shopify. I am sorry to hear you've not been contacted by Shopify about this issue.

 

A transaction that is not authorized by a customer is referred to as fraudulent. A fraudulent transaction can result in a chargeback, which can cause you to lose money. Shopify's built-in fraud analysis uses machine learning algorithms to help bring suspicious orders to your attention. You can investigate a suspicious order in several ways.

 

It sounds like you did the right thing by refunding the order that was marked with a high risk of fraud. Unfortunately, a chargeback will occur if a customer makes a complaint to their bank - regardless of any actions taken by you, the merchant. There is a process for chargebacks, where you can submit evidence that you shipped the order, or that you refunded the order. The bank looks over your evidence and makes a decision in favor of either the merchant or the customer. If you go to the order in question, you'll be able to see the chargeback and submit evidence.

 

If you view the order and it states you lost the chargeback, unfortunately, that decision is final. The decision lies solely with the bank, and not Shopify. If you're using Shopify Payments and you're issued a chargeback, then the amount is deducted from your next available payout. If your payout doesn't have enough funds for the amount owing, then:

 

  • for stores located in Denmark, Germany, Hong Kong SAR China, Ireland, Italy, the Netherlands, New Zealand, Singapore, Spain, Sweden, or the United Kingdom, the remainder is deducted from the next payout until the total amount is covered.

  • for stores located in all other regions using Shopify Payments, the balance is debited from your bank account on the day of the payout.

Chargebacks can cause a merchant financial stress, and we do our best to help out where possible. We strongly recommend contacting a customer whose orders have a high risk, so you can obtain information from them.

 

You can find more information on chargebacks here and the fraud analysis process here.

 

Thanks!

Miles | Social Care @ Shopify 
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MMVCREATOR
Tourist
3 0 3
So a customer can use. 3 different cards, all failed attempts. Then use
another card that goes through, I cancelled and refunded it, after shopify
said it was a fraudulent order. They froze my store on the 5th, then on the
24 or 25, said I owe for a change back, after all that...

I provide the info of the order, clearly showing what I just explained
about the customer, proving I did no fraudulent activity, I mean how could
I, shopify pays me. I never received a payment for the order..

Then the customer makes a complaint to his bank about a fraudulent order
that should not went through because I refunded it, same day I believe,
might have been the next.. The funds on his cc didn't come to me..
Iconic-Auto
Tourist
10 0 2

Im having the same issue i would like to know an answer or what is the process to follow from Shopify when you think a order is fraud , do you refund the card , sit and wait for the charge back and fees .... or please give us an answer !!! 

MMVCREATOR
Tourist
3 0 3
Best to contact to customer trying to order, for more info. Wait for a reply before you confirm order or fulfill it. Contact support
GemJ
New Member
1 0 0

Hi,

I had a similar issue just that I refunded the order and now I am being charged a processing fee. This must be refunded since it is completely out of my control of who will place fraudulent orders....

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