how can I loose a chargeback for non receipt when I showed proof of delivery Shopify Payments

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Excursionist
42 0 8

I recently received a chargeback for non receipt  I filled all necessary plus tracking that shows the order was delivered but I still lost.

1.  I want to know why this chargeback was accepted by the bank to begin with?  They should be asking for tracking to prove non delivery.

2. I filed all the necessary proof with shopify but the bank still sided in the customers favor
  How is it possible that this chargeback can be sided in the customers favor when I showed proof it was delivered?

3. Shopify refuses to file an appeal
4. Shopify refuses to give me the banks information so that I can file an appeal.
5. Shopify support will not let me speak with a manager

Shopify is allowing fraud to be committed against me.  I am angry

Is this happening to anyone else?   How do we get Shopify to change their policy on this.  They are not protecting their merchants against this.  





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Shopify Partner
134 5 19

Hi @Bikes-Angel ,

I'm sorry to hear about your chargeback issues. You are not alone and many online merchants face this issue as well.

Without knowing the reason of the chargeback it's quite difficult to know the underlying cause of why the money was returned back to the customer. One common example is that the card was stolen and used by a third party. Imagine this, if you had your CC used by someone else, wouldn't you want your money returned back to you? If this is the case, then it does not matter if you shipped out the item and had it delivered. The bank will return the money back to the original account holder.

I know this is not favorable to the merchants, but fraud orders do happen. It's quite complex how the banking industry works and when a transaction is made, it goes through many different banking systems.

I understand your frustration with Shopify not being much of a help in your case, based on the very limited information you have provided in your post, you can contact your payment gateway provider directly to see if you can speak to someone on the risk management team and see how you can prevent this in the future. If you use Shopify Pay, then Shopify does have a chargeback protection plan, but it does not cover everything and it alone has its flaws.

I hope this answers at least a small part of your questions.

Decrease fraudulent orders, stop chargebacks and expand globally with Beacon. https://apps.shopify.com/beacon
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Excursionist
42 0 8

I believe I gave quite enough info.   The card was not stolen,  I only deliver to non/low fraud orders.   This was the card holder and he claimed he did not receive the item. However, the item is marked delivered by the post office.  Tracking by the post office marked delivered is sufficient enough to discredit any claim for non receipt. Period.
If the customer truly did not receive it then there are steps he must take.

1. File a service request with his LOCAL post office to get gps tracking of delivery
2. If gps shows it delivered at his address, then he must file a police report for mail theft.

After doing those 2 things he can then file an insurance claim with the post office.

When he called his credit card bank to claim non receipt, they should have requested tracking to prove non receipt. But... they're too busy making money on chargebacks so they put them through.

And.... as far as if a card is uses fraudulently????  That's what a matching billing address and cvv # are for.  If merchandise is sent to the billing address and delivered then how can that possibly be a fraudulent charge.
And..... That's why credit card companies charge such high fees to insure.

The Payment Gateway IS Shopify payments.   They refused to appeal or give me the charge back info / bank info so that I can appeal myself.  So where's the chargeback protection? Because they themselves claim that the order was non fraudulent, the billing address and cvv matched.  But I'm still out 75.00 When I have proof the item was delivered.

These are unfair practices that must change! 




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New Member
3 0 0

Good luck in pursuing this to get a more favourable resolution - in our response we sent photos (captured by a 3rd party) of the guy *wearing* the items we'd sent and the chargeback was still upheld in the customer's favour with no details supplied to us as to why.

 

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Excursionist
42 0 8

Was the item custom made that they couldn't have gotten anywhere else?  
See this is the problem, these credit card companies are getting away with this multiple times a day with thousands of merchants. I'm very surprised no one has started a class action suit. I mean who ( senator?  the news? helps fight for the rights of merchants?

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New Member
3 0 0

It wasn't custom but it was our own product, which at that time probably had only just gotten to double figures for sales so was unique enough.

The annoying / hugely disappointing thing was not getting the detail on why our response wasn't sufficient to throw out the chargeback.  Not sure on if this is an issue with Shopify or the chargeback process itself as fortunately it's the only one we've had.
I do agree if the card issuers and payment processors aren't implementing sufficient security / safeguards it's very unfair for the merchant to be the only one penalised for it.
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New Member
2 0 0

I am in a similar boat. Our customer bought an item and changed their mind on the model after it had shipped. We interrupted the shipment and rerouted it. There were shipping and administrative fees that were applied by FedEx (This item weighs over 1,000 lbs) and it was in the $100's. I submitted email communications from with the customer stating to cancel and reroute. That he had ordered the wrong product. I have all the communications with the manufacturer and FedEx as well. I lost!!!!!! No explanation at all.

I am trying to find out how to file an appeal, but I can't figure out what process or bank the customer is with. I just have the last 4 digits. How can there not be any discussions on this subject?

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