Very unhappy experience of Fraud handling using Shopify

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New Member
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Hi all, 

We have been using shopify for over 2 years about our brand and we were quite happy with the service and the ease of use of the platform.  But bad things happened about 2 months ago. We received couple orders from Philippines and they are flagged as high risk.  So we email these customers one by one and make sure that they want our product and they want us to ship them the products.  After that we shipped our products with DHL as what we ship to our customers normally.  After that they received the item from DHL and they signed when they received the items.  Right after they received the items,  they started to open charge back cases! So I submitted all the email,  DHL tracking and everything and then I ask for help with Shopify and they said they CANNOT do anything. Eventually,  those people didn't return any of my product but I lost USD$2003 + USD$230 shipping fee and 7 piece of my products but shopify can never help in this case.

This is a very sad story for every shopify shop owner when we are using shopify service.  I feel bad that everytime when problem arise,  seller seems to be the only people that suffer.  Just want anyone who own a shopify store got a headup. Shopify got really bad seller protection, or even worst than Paypal(paypal is real bad but at least it will work occasionally).  

Kelvin So - CEO of Levimoon https://levimoon.com
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Shopify Partner
132 5 19

Hi @Kelvin_So 

I'm sorry to hear about your fraud issue. You did the right thing by contacting the customers and reaching out and providing the evidence to Shopify when the chargeback was opened. Do you know what was the reason was that Shopify did not cover the case? I'm assuming the customer paid using Shopify Pay?

Decrease fraudulent orders, stop chargebacks and expand globally with Beacon. https://apps.shopify.com/beacon
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New Member
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I contacted the CS and they said they are not able to help since the bank is the one who make the decision.  All 6 orders are paid by Shop Pay and they are placed to my store on May 28 to May 29 these 2 days but I am didn't get any help from the payment gateway.  And end up I have to pay extra HKD$85 per case with no choice.  Honestly speaking,  very disappointed about the help that Shopify could provide when fraud case rise up. 

Kelvin So - CEO of Levimoon https://levimoon.com
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Shopify Expert
872 72 204

Man that sucks!

It's the banks though, credit card companies hate merchants... they have pretty much a monopoly set up so we don't have many options (come on crypto currency, get mainstream already!).

I recommend explaining to the customer that your fraud system triggered, and to request 2 things:

1) To take a selfie holding their ID that matches the billing information.

2) Reply that they are a legit customer and will not open a charge back case.

Explain that it's annoying, and apologize, but there are dishonest people out there and we have to protect our business. You can even say you've been frauded thousands of dollars and it hurts honest customers. If they don't comply with either, politely let them know that you'll have to cancel the order.

 

This works great for 2 reasons:

1) If they won't do it, then it's probably fraud

2) If they DO file a chargeback, then you'll have additional proof to make your case with the credit card company that they are clearly frauding the system.

You can win chargebacks. It's not easy but the more proof you have the better your chances.

Founder of Speed Boostr (Shopify optimization and dev agency).
Creator of Theme Scientist (A/B testing app).
Creator of Order Automator (app that auto tags + fulfills orders, send emails).
Creator of Tip Jar (add a tip button to your store).
Creator of Shopify Analyzer (first performance analysis tool specifically for Shopify sites).
My team also builds custom apps and automated solutions.
Enjoy the adventure!
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New Member
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Thanks a lot for the advice,  this is really a good way to protect ourselves.  It sucks everytime when there are problems arise,  everyone just turn against the merchant and then we suffer! 

Kelvin So - CEO of Levimoon https://levimoon.com
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Shopify Partner
132 5 19

Hi @Kelvin_So 

Since Shop Pay handled the payment you should really contact them to see how you can resolve this issue since Shopify did not handle the direct bank transaction. I've quickly taken a look at their website and tried to research their chargeback policy but I could not find anything regarding this issue. A good payment gateway provider will have documentations and policy regarding chargeback cases and steps to take. I would strongly advise talking to a risk management team there to see how you can dispute the charges since you have full proof of the delivery.

You also might want to think about switching to a better payment gateway that will provide better chargeback protection. 

Decrease fraudulent orders, stop chargebacks and expand globally with Beacon. https://apps.shopify.com/beacon
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