Fraud alerts

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New Member
2 0 1

I too experience a fradulent card 5 cards used but Shopify charged a chargeback fee when it’s the customer that is fradulent money goes back but twice Shopify made 70 bucks off me 

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Shopify Staff
Shopify Staff
1467 89 320

@Timothy_Moore 

I'm sorry to hear that you've been a victim of chargeback disputes. They are a sad reality of selling online; however, they are never an easy pill to swallow as it can result in lost funds, and the product should the chargeback be deemed fraudulent. Shopify is only the middle man in the process as we provide the means to submit your evidence to the banks. We do not make money off the chargebacks, nor have a hand in the outcome. The fee you're referring to is a fee charged to Shopify by the credit card company which is then passed to the business owner. If the banks rule in your favour then the fee, along with the funds for the order will be returned to you. I would highly recommend reviewing our fraud prevention help doc as this can help reduce the chances of receiving a chargeback in the future.

Peter | Social Care @ Shopify
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Tourist
4 0 2

Hey Peter, 

So why is it that my Shopify store gets shutdown after going through this same process of actively working towards reducing the chances of fraud from happening in your store?

 

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Shopify Staff
Shopify Staff
1467 89 320

@NewLeaders 

I'm afraid I wouldn't have access to that information as it is handled by a specialized team; however, if the store were closed, then it could be due to a number of variables and wouldn't necessarily be based on a fraudulent order. If you are in contact with our Risk team via email, then you will want to forward any questions, comments, or concerns to them as they are the only team that would be able to provide further assistance. Replies to emails typically take between 24-72 business hours.

 

Peter | Social Care @ Shopify
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To learn more visit the Shopify Help Center or the Shopify Blog

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Tourist
4 0 2

Hey Peter, 

Thanks for the response. I'm not sure exactly what variables my store was closed, but just to let everyone know who reads this, my store was not even open to the public when it was closed. This store had a coming soon front cover page with a required password to access. 

I don't know exactly who's to blame for these very unnecessary store closures but it seems like the people inside the Risk Operation department do not value Shopify customers or business owners.

I have all my logos, product images, paid themes inside that store. It really does feel like someone just broke into your business. Is not any different than getting your site hacked. 

I've really lost my trust with Shopify because of this and is still very difficult to believe that there are people like this within such a great platform. 

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New Member
2 0 1

We are experiencing a very similar problem. We had a fraudulent order that was immediately recognized by us and Shopify. We contacted Shopify by email (the only way currently to reach help) and upon their advice shut our store front down immediately while it was resolved. During the time the store was CLOSED, following Shopify's instructions exactly, two more fraudulent orders were placed. 

When the orders were placed, they showed up orders in our store but the payout went to bank accounts other than our own. Shopify rectified 2 out of the 3 by directing the money back to our actual bank. That way, when the chargebacks occurred from the true customer's bank, we were able to refund the money immediately with no protest from our account to theirs. We were still charged fees for the orders by Shopify (which never actually took place), have to pay taxes on them and were charged a Chargeback fee each time of $15. We are well over $600 in unnecessary fees for sales that never even took place - again, while our store was CLOSED.

The third fraudulent order, for $4,450.66 was NEVER deposited in our bank account. It went to a completely different bank. Yet Shopify charged it back out of OUR bank account when the cardholder's bank requested a chargeback. We are now overdrawn on our bank account, Shopify refuses to pay us for the orders received after we opened the store and the representative we've been corresponding with 1. Refuses to speak to us or provide a phone number and 2. Repeatedly tells us Shopify has no liability for fraudulent orders and it's our fault because our password was insecure. 

How can this be our responsibility when we CLOSED our store as advised and Shopify still allowed orders to come through? Then SHOPIFY deposited the money into the WRONG account and then redrew money from ours (which essentially amounts to theft.) We had zero control over that situation yet Shopify refuses to rectify the situation or even provide information other than directing us to their Fraud FAQs. We have never heard of a "Fraud Team" nor any idea how to reach them. As you can tell, we are beyond frustrated. We are a very small business and cannot afford to pay for someone else's mistakes. If anyone else has had an experience like this and was able to resolved, we would love to hear from you. Conversely, if you want documentation or to compare notes on a similar problem please contact us. It is unbelievable that a platform of this size & popularity has no process for resolution for their paying customers. 

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Shopify Partner
85 2 12

I'm sorry to hear about your issue with chargebacks.

Chargebacks can happen even after closing your store since the chargebacks happen on a bank-level and Shopify usually has very little to no control over how your finances get handled specially for third party payment gateway providers.

The reason you might not see the money in your account is that the Bank has possibly frozen the transfer, but still notified you of the chargeback. You may or may not need to file a claim in order to have a chance at providing proof of delivery/service. 

In all honesty, it's best to quickly contact your financial institution directly and get a handle on the situation and see how you can get this resolved as soon as possible. If you are using Shopify Payment, then you can contact stripe since Shopify Payment uses Stripe to handle the payment gateway. 

Decrease fraudulent orders, stop chargebacks and expand globally with Beacon. https://apps.shopify.com/beacon
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New Member
1 0 0
Same case!!!!!!!
 
I have had a sale on 18 Aug 2020 that have triggered a fraud alert. The shipping address was far from the IP address and neither phone number checked out. I did receive an email back from one confirming the billing address that had been flagged as wrong. 
 
We were being charged a
chargeback fee because we had to refund the fraudulent sale.
 
Why we are being charged the chargeback fee because people tried to steal from us?
 
Could you please arrange a refund for the chargeback fee?
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Shopify Staff
Shopify Staff
1467 89 320

@TopForest 

I'm sorry to hear that your business received a fraudulent order & subsequent chargeback. These are never easy situations to handle, especially when you've potentially lost products, and/or the funds for the order. The chargeback fee is something the banks charge Shopify in order to conduct the chargeback review. The fee is something we pass along to the business owner as it is the responsibility of the business owner to cover all fees associated with their business. For this reason, we would be unable to provide a refund unless the banks favoured you in the chargeback review. Should you win the chargeback, the fee and the cost of the order will be refunded back to you. In the future, if you do receive a high-risk order, it would be best to cancel and refund the order before a chargeback is opened which will avoid a dispute being created. If a dispute has already been created then you will not want to refund the order as the funds have already been debited from your account. Refunding an order with a chargeback dispute open will result in paying double the amount of the order which is an action that can not be undone. I would recommend reviewing our fraud prevention help document for further insight into how you can prevent fraud moving forward. 

Peter | 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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