chargeback

[kirstenjackson]

I have had a chargeback for $1000 and the customer made a mistake and has contacted their bank. On the 14th October shopify tried to take the funds from my bank but could not.  Today I recieved a email from shopify saying a payout that is due today of $2000 has been cancelled and all future payments are cancelled. Can shopify deduct from the $2000 until the chargeback is resolved? 

[dylanpierce]

Hi @kirstenjackson ,

That is a really unfortunate situation. On the bright side, it sounds like the this is an honest mistake by the customer, and I hope you have that in writing from the customer so you can provide that evidence to the chargeback dispute.

Right now it seems like you have a timing problem. Even though ultimately the funds should return to your account after the dispute is resolved, Shopify still needs to process these funds.

If you haven't yet, I highly recommend starting a support ticket with Shopify, hopefully that will lead to some hands on help to help maneuver this automations on Shopify's payout system.

The problem is that your chargeback rate on paper is extremely high - meaning 50% of your sales last period resulted in a chargeback. Shopify most likely has labeled your account as high risk, hence these measures.

Merchants that have high chargeback rates will have their payouts frozen, this is a fraud protection measure on Shopify's side because that's a real signal of a bad acting merchant that's abusing the credit card system.

I hope this helps explain what's going on better, but ultimately only Shopify will be able to make exceptions for this case. I hope you're able to get help through their support center. Only Shopify Plus as far as I'm aware has dedicated account managers to help 1:1 on this.

Thanks,