Does anyone here also disagrees with the new policy or terms that Shopify implemented on March 1, 2020 about not refunding us also the Shopify Payments fee whenever we issue a cancellation/refund of an order? I don't agree with it because it is unfair to us sellers who have to pay for a fraudulent/high risk order whenever we cancel and refund the customer who placed a possibly fraudulent order (or high risk) order. For example I had an order the other day for an amount of $1,510. The customer was flagged for being high risk and fraudulent by Shopify. Signifyd wouldn't guarantee the transaction and protect me as a seller because they too also flagged it as high risk and failed the security check. The order went through and so did the the credit card because the zip code and CVC matched. So i was forced to cancel/refund the order in full amount, because of the risk I didn't want to take since it will most likely be fraudulent and result in a chargeback. I had to pay $44 for the Shopify Payments fee because I chose to cancel/refund the fraudulent order that I didn't want to process because I was told by Shopify's Risk Dept that the order was most likely fraudullent. What is shopify not seeing this, that there are scammers/hackers/frauds out there who prey on our shopify stores and place orders that we end up cancelling/refunding anyway because it's high risk/fraudulent and now shopify won't refund us for the Shopify Payments fee as thy said on their terms as of March 1, 2020.. I see this policy to be unfair.
By the way, I already had fraud filter installed, and had the ZIP CODE + CVC security checks enabled on my Shopify Payments, yet fraudulent/high risk orders like this still get through and I still have to cancel/refund the customer for not going through the with order. Am I missing something? Eventually shopify payments will be thanking me for paying them the thousands of fees soon or later.
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So Shopify replied to my email and said this...
Vern here from Shopify. I am working with the Risk team today to help out with emails. As per the Shopify Payments Terms of Service the credit card fees will be paid on all orders. I totally understand where you're coming from, but there is not a way to be exempt from credit card fees on any order at this time.
Let me know if you need anything else. Have a great day!
Risk Specialized Guru
It looks like shopify was not forgiving of the high risk/fraudulent orders, and they decided to just allow sellers to eventually lose a cumulative of hundreds to thousands of dollars as more and more Shopify Payment fees are paid by sellers... this does not seems to be fair and can cause most sellers to go bankrupt or out of business quickly. They implemented this as of March 1, 2020, and it's looking very gloomy for sellers thereafter.
Here's a screenshot of an example of a high risk/fraudulent order made by a customer that still passed CVC and ZIP CODE checks, that ends with a sad story.. seller (myself) pays for the credit card transaction fee (called Shopify Payments fee) when seller (myself) cancels/refunds the customer because I chose not to go through with the order being highly fraudulent that could result in a chargeback. So you're left with 2 choices only: 1) cancel/refund the order and pay the credit card transaction fee, 2) process and ship out the order and risk a chargeback.
The exact same thing just happened to me!
My transaction fee is $164.14 which was 3.9% + $0.30 (isn't it supposed to be 2.9% + $0.30 ?)
In any event, this is absolutely ridiculous! They know it's fraud. I have all of my protection on the highest level, this transaction should have never gotten through, they flagged it and I knew it right away, I cancelled the order immediately, the money never came into my account. It all took place within a few hours.
If this is the policy they could just create fraudulent charges on millions of websites a day and rack up huge "transaction fees" which we know are much higher than having an independent processor, so they're making the spread which is probably about 2-3%.
Shopify Payments fee has always been a pain for merchants.