I recently had two chargebacks (two sales) raised by the same customer (23rd June) for over £3000. We went through Shopify's response procedure which in its self is not very good as you are limited to submitting one image. I had multiple images of the guys credit card and conversation by email we had shared. The response was submitted to the customers bank for both sales on the 20th July. A reply to me said it could take up to 75 days for the bank to make a decision. Then on the 8th August the customer raised the chargeback again before the bank had made its decision. So my payout went into minus figures again. For the next few months I will be working for nothing again. Why is there nothing in place to stop a chargeback being made over and over again for the same sale?
Has anyone else had this problem of double chargebacks on the same sale?
Just to add, I have No Fraud doing payment protection for payments. Both times No Fraud passed the card transactions! And when I have looked into claiming back from No Fraud they only cover up to $800. So even if I win I will still be a lot of money out of pocket.
A Shopify guru has told me they are working on adding extra security to protect us users against fraud. But how long this will be is any body's guess.
Bumping this as I'm in a similar situation.
I really don't appreciate the hands off approach Shopify has put in place for chargebacks.
Online shoppers are getting more aggressive expectations during their shopping experience without even considering how small the operation/company is on the other side.
Meanwhile Shopify hasn't stepped up their services to assist merchants in calming the entitled and privileged customers.
Shopify say they are going to do more to help but how many small companies have to go bankrupt till they get the coding or what ever it is they have to do sorted out.
I have been wondering if using a different card taking company would help?
As for No Fraud, I feel like they are fraudsters!
Sorry to read about the unknown behind this order that's giving you problems when it comes to chargebacks. Was there any customer verification that was sent before you fulfilled the order - like either a text or email to have the customer confirm their purchase before you move forward approving the order?
I work with an awesome team at NS8, a legit comprehensive fraud platform and Shopify partner. We help merchants like yourself have complete control in understanding flagged suspicious orders in real time and provide customer verification options, so the guesswork is completely taken out of approving legit orders and reducing significant numbers of chargebacks in the long run. The order scoring NS8 offers also puts the control in your hands to approve or deny any customer's cc before it's charged.
I'm available for any questions you may have - Feel free to check out NS8 app on Shopify's marketplace in the meantime.
I'm actually having the same exact problem right now. One customer bought two items totaling over $5,000 USD plus shipping and he was worried he wasn't going to get his items on time so he initiated a chargeback with his bank. He later decided to give us more time and did everything he could to cancel the chargeback. He received both items, he contacted Shopify but they would only allow online live "Chat" and later he sent me a copy of the transcript showing he was asking them to drop the case. He also sent me a copy of a letter his bank sent him acknowledging they have dropped the case.
I submitted the proof I was asked to submit with tracking, pics etc. I was just waiting for the chargeback to clear as I was very confident that it would be fine since me and the buyer are not in dispute and to my big surprise I received an email yesterday from Shopify that the chargeback was found in the buyers favor and the case was closed on the first item. I went on live chat immediately and while I was on live chat I received an email from Shopify that my payment didn't go through, I thought what payment? Adding insult to injury, they tried to charge me a second time for the chargeback that was charged to me one month ago when the case first opened than I had a payout sitting in Shopify so they took it from there so I did end up getting charged two times from the same chargeback and the buyer has the high-end item. Basically I paid him $5,000 USD plus shipping to take my $2,500 USD item from me and that's not his fault, its Shopify who is causing this mess. The buyer seems honest and I am still working with him but it is unfair to make the buyer jump through hoops.
Shopify will not allow you to talk with a live person. They give you the run around about how its between you the seller and the buyers bank and when you ask for that banks contact info they tell you they are not allowed to give that info out.
If you have an expensive item or items you will eventually get caught up in this Shopify madness with no one to answer you and money stolen out of your account. Its not always the buyer, sometimes its the website you use and trust that ends up putting you out of business. Good luck to all who sell on Shopify,.... Your going to need it.
It is ridiculous that Shopify will not help their own merchants. They make money off of the processing payments, they should at least take a portion to help with these issues. This is a blatant double charge and they say it is not their fault. Shopify make the connection between the processor and the banks. They have the ability to avoid this. Heck Shopify's own audit trail shows the double charge