Cancelling an order during chargeback inquiry

New Member
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There is a chargeback inquiry currently going on with the order. Customer confirms that he has dropped chargeback but i dont see anything updated from shopify admin side. 

 

I cannot refund because of the status of the order being chargeback response submitted and customer now wants the refund.

 

I cancelled the order assuming that this will automatically gives them the refund they want. Customer hasnt received any refund yet. 

 

Do i have to refund separately apart from cancelling the order?

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Community Manager
Community Manager
2374 163 341

Hi @ap123,

 

Nick here from Shopify. 

 

Sometimes it can take a little bit of time for more information to come through once a chargeback has been dropped. This is something that would be in the hands of the bank where your customer is from. 

 

Can I ask if you have been in touch with the customer directly about this at all? The only way for a chargeback to be resolved is if the customer drops the Chargeback or you reply with evidence and win the chargeback. To cancel an order the payment you would have either not collected the payment or collected it but not fulfilled it meaning the chargeback would be null and void and you can keep the product thus not costing you anything. You can read the full guide for refunding and canceling orders Shopify has here

 

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Canceling an order if the customer has paid and you haven't fulfilled it will refund the customer also. Shopify has a helpful guide about managing chargebacks which you might find useful and can read here

 

Would you be able to update me on the status of the situation now and we can take it from there? 

 

All the best, Nick

Nick | Social Care @ Shopify
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New Member
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Hi Nick, 

 

Thank you for getting back to me on this issue. Current status of Order in Shopify is - Chargeback Submitted/Unfulfilled/Paid/Canceled

 

Customers says that he has dropped the chargeback. We have a letter from Customer's bank saying that chargeback is dropped. Now I think we are waiting for Bank to make a decision soon. 

 

So the money has been taken from our payout and its on hold with the bank. Now that the chargeback will be dropped (may be in couple of days), money will deposited back to us i believe. 

 

I do understand If i cancel the order which is paid, then money is refunded to the customer as per the documentation. But in this case, order status was not just paid but also chargeback submitted. So cancelling order did not refund anything because of ongoing charge back. We also tried refund before cancel, but it did not refund because of chargeback. So basically you cant do anything until chargeback is resolved. 

 

We do want to refund the money back to the customer once everything is clear. But i have already cancelled the order. So will I have to refund separately?

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Community Manager
Community Manager
2374 163 341

Hi @ap123, thanks for getting back to me. 

 

I'll be perfectly honest and tell you I'm not 100% sure if you will have to refund the customer separately. I think it's best to wait until the chargeback is resolved and then reach out to the customer to see where everything is then. It's difficult to really know since you have canceled the order and that the chargeback has been dropped. I know it isn't ideal to keep waiting, but I don't want to tell you one then and then it ends up being the other. 

 

Would you be able to keep me updated when the chargeback is resolved and we can see where it all is then, please? 

Nick | Social Care @ Shopify
 - Was my reply helpful? Click Like to let me know! 
 - Was your question answered? Mark it as an Accepted Solution
 - To learn more visit the Shopify Help Center or the Shopify Blog

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