Charge back on an item successfully delivered with Tracking Evidence

[Waistsnbelly]

Hello, I need some help as I am small business owner and still sort of new to Shopify and getting orders. I had a lady order 3 items on my website, 1 item was unavailable and I refunded her while I went ahead to fulfill the remaining 2 orders and could confirm from UPSP that they were "successfully delivered" only for me to get a charge back of the total amount $131.44 and extra charge back fee of $15 from her on an item successful delivered by... I provided evidence that was required to show it was indeed delivered as seen on USPS website and I did go to UPSP office to confirm if the item was indeed delivered as seen on their website and they reaffirmed to me that it was Delivered, Only for me to receive an email few days ago that the bank ruled in favor of the customer and sided with them! And charge back was successful.

I believe this is completely unfair to a business owner , does that mean anyone could walk up to their banks and file a charge back and get their money back even though an item was delivered Successfully and with evidence of tracking details? 

I completely feel left out and abandoned by Shopify despite glaring evidence that I was scammed as I indeed delivered this item and have proof that I presented.

Who has ever experienced this ? I sincerely need help as I feel ripped off, helpless  and scammed 

[Erin]

Hi, @Waistsnbelly. If you accept credit cards on your store there is always a chance you will have to deal with chargebacks or inquiries, as this is an option offered to most cardholders via their bank or credit card company. That being said, I can understand how chargebacks can be difficult to deal with.

When a cardholder has an issue with a charge on their credit card, they can contact their bank to dispute the charge. The bank then makes a chargeback or inquiry and makes the decision regarding the dispute after reviewing the evidence. Shopify doesn't have a hand in the decision, but Shopify does provide an easy way to submit your evidence showing the charge was valid to the bank that made the chargeback or inquiry. You can learn more about chargebacks and inquirys, and how Shopify can help with this here.
 

[dylanpierce]

Hi @Waistsnbelly 

First off, so sorry to hear about your situation. Yes it's blindingly frustrating to deal with fraudulent chargebacks when you've only acted in good faith towards your customers.

When customers file chargebacks, they also need to provide a reason. Is it possible this customer provided a reason besides the good not being received? Maybe they filed it as not what they ordered/expected or perhaps they claimed their card was stolen.

That might help explain why your evidence didn't help in this scenario. I didn't see you mention the exact reason the customer gave in the chargeback dispute, just wanted to follow up and see if non-delivery was the reason.

Again, sorry to hear about this. Friendly fraud (a.k.a. fraudulent chargebacks) are unfortunately a growing problem, because customers have less to lose than merchants and the issuing banks tend to lean towards customer protection because consumer trust is needed to keep the eCommerce economy going. Without consumer protections, then there would also be no consumer trust.

The chargeback process was implemented to prevent stolen credit card usage that was rampant before PCIe compliance became widespread, now I and other merchants argue perhaps the pendulum has swung too far to the consumer protection side. But unfortunately for now, if you accept credit card payments then you have to also accept the reality of the occasion fraudulent chargeback.

What works for merchants that work with us is asking for additional proof like a utility bill or ID to show the customer that you are serious about fraud and you have additional evidence to provide to the dispute should they try to make a fraudulent chargeback. Friendly fraud seems to be a crime of opportunity, and a strong deterrent is verifying their details.

I hope this helps and I hope this doesn't become a repeating issue for you.

[UjjawalS]

hi @Waistsnbelly I couldn't agree more with @Erin & @dylanpierce. This is a frustrating and common issue faced by many business owners. The chargeback system, designed to protect consumers, can sometimes be abused.

I would, however, like to add one more point in terms of completely utilizing all the options provided by the shipping carriers, like USPS in your case, to either avoid or get more information in such cases.

Carriers like USPS can be a valuable resource in your chargeback dispute. They can provide detailed delivery information, including the exact date, time, and location of the delivery. If you obtained a signature confirmation, USPS can compare the signature on file with the one obtained at delivery, though this is not foolproof. In cases of suspected mail theft or fraud, you can initiate a USPS investigation. While this may not directly impact the chargeback, it can provide additional information.  If your item was insured, filing a claim with USPS might compensate you. By effectively utilizing USPS resources and documentation, you can strengthen your case and increase your chances of a favorable outcome in the chargeback dispute.