I'm actually surprised Shopify went this route. Amazon, Best Buy, WalMart and other big retailers don't have to deal with this issue. I'd rather see them just raise the transaction fees or the cost to use the platform.
One captured payment followed by an email of a customer cancelling a minute later can cost me more than I pay an employee for an entire day. It's a major daily stress issue. It's a TERRIBLE way to be doing business.
We should be flooding their customer support team with complaints about this issue. When they inevitably say they can't help you other than to pass along your feedback, let them know you'll be leaving negative feedback on the customer service experience.
Additionally, you can email the CEO directly to let him know this is unacceptable: firstname.lastname@example.org
Consider including the following:
1. If this is an unavoidable change in Stripe's terms, you should find a new merchant provider or banking partner that doesn't charge these return fees.
2. If this is not resolved soon, I will be moving my online business to Squarespace where they do return fees on refunds.
I'm new to shopify and was thinking about migrating my current website. One reason, I wanted to get away from PAYPAL, who is also not refunding fees as of 1/2020. For me It means a significant amount coming out of my pocket into theirs. Particularly a problem if an item isn't in stock or an order is cancelled. I have found NO transparency on shopify's information that they keep these fees, I've had to resort to the forum. I think ALL of these companies are cheating small businesses. Sadly, I guess I won't be moving to Shopify. I believe Square returns fees.
I'm a new member and found this post because this happened to me today.
Shopify flagged my first order and I returned the payment to the customer. The customer provided me with the information to prove that what was entered was correct. Even with apologizes and a sales deal, I lost that sale. Hours later, I see I'm being charged a return fee for the order they incorrectly flagged.
I have contacted Shopify but I doubt they will do anything regarding this matter.
So now I assume I must take every order that is flagged as I would be paying more money to return items that aren't processed. This is ridiculous and not good business practice on Shopify's end. This is a practice to process all order, regardless if they are flagged as suspicious or fraudulent.
This just happened to me. I was hit with a string of fraudulent charges in a row. I refunded them all in order to avoid charge backs, but then noticed Shopify was trying to withdraw more money than they had deposited into my account. After inquiring, I was told about this new policy. I think this is completely outrageous, especially considering that after looking into the matter, most of these fees are refunded by the credit card companies. Shopify is intercepting these returned fees. Shopify tries to place the blame on the credit card companies, but they are lying. Now, if the issue is with Stripe keeping the fees, then Shopify needs to be upfront about that, and either move to a new company that does not do this, or remove their 2% penalty fee they charge us when we choose to not use Shopify Payments. My small struggling business cannot take these extra unexpected charges. What if I get another string of fraudulent charges that are even larger next time. This could cost me hundreds of dollars. No thanks. Shopify is losing a customer because of this.
As has been noted in this thread already, processing a refund may cost Shopify/Stripe/card companies a tiny bit of money - likely pennies, certainly not a percentage.
The US Federal Trade Commission has the power to force these companies to only charge a reasonable (and preferably fixed) cost. They've lowered costs for retailers before, e.g. https://www.ftc.gov/system/files/documents/plain-language/bus78-new-rules-electronic-payments-lower-...
So contact the FTC, your Member of Congress, your Senator, the business media outlets... and explain how unfair and extortionate this is. Sticking up for small businesses wins votes, and this is an election year in the US.