Fraudulent Transaction Chargeback

Richie2k
Tourist
3 0 1

Hey there I recently received a chargeback notice on an order. The chargeback has a $20 NZD fee attached to it. Is it possible to just click on refund and refund the amount without a chargeback fee?

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Jason_Beacon
Shopify Partner
182 6 29

Hi @Richie2k 

 

I'm sorry to say that the chargeback fee usually can't be refunded since the chargeback was already opened. You can try calling the payment gateway provider and hear if they are willing to reimburse you. I know Paypal sometimes will refund you the chargeback fees if you ask nicely and this is the first chargeback case.

The best way to avoid chargeback fees is to not have any chargebacks in the first place or to quickly cancel orders and refund customers before they initiate a chargeback. There are several guides online, but if you have not already, you can refer to the Shopify guide on helping you prevent future chargebacks. https://help.shopify.com/en/manual/payments/fraud-prevention

Decrease fraudulent orders, stop chargebacks and expand globally with Beacon.

https://apps.shopify.com/beacon
Richie2k
Tourist
3 0 1

Hey Jason,

I've closed PayPal as a payment option on my store since they closed my account because I was involved with selling replica earpods which I no longer sell on my website. Is Shopify able to help out with the chargeback fee?

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Jason_Beacon
Shopify Partner
182 6 29

I can't guarantee that they will be able to help you or you will get your fee refunded, but there is no harm in trying to contact them directly and ask about possible reimbursement.

Decrease fraudulent orders, stop chargebacks and expand globally with Beacon.

https://apps.shopify.com/beacon
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Richie2k
Tourist
3 0 1

Thanks for the help mate, really appreciate it.

MariaBolsillo
New Member
1 0 0

Hi Jason,

 

Thanks for the info. I recently received an order from HK that had a high risk of being fraudulent. I immediately wrote to the customer and of course, no answer because probably the email provided was false. Two days later, I received the damned chargeback...My question is: For the next time, could I just pressed "refund" if I suspect that the order is false and going to end up in a Charge back? 

Thanks in advance for the help!

 

María.

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Jason_Beacon
Shopify Partner
182 6 29

Hi @MariaBolsillo 

You should always either refund immediately once you suspect an order is fraudulent or not capture the payment until the review is complete. Your issue is that you still have not refunded the order after two days. This is too long! You should always quickly cancel orders as soon as possible once you suspect foul play. 

In addition, a payment that has not been captured cannot result in a chargeback being opened. Read this article I've written on how to configure your shop to do this. 

https://medium.com/@jason_80572/how-to-configure-your-shopify-settings-to-better-reduce-fraud-orders...

If your store has a low volume of orders, then you can take your time to review each order without the risk of a possible chargeback occurring while enabling you to still capture the payment once the review is complete, so you don't risk losing a sale.

I hope this helps you.

 

Decrease fraudulent orders, stop chargebacks and expand globally with Beacon.

https://apps.shopify.com/beacon
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