Re: Chargebacks - the merchant suffers with ShopifyPay

Chargebacks - the merchant suffers with ShopifyPay

New Member
11 0 0

We received an order.  It was marked as possibly fraudulent.  We followed all the Shopify support page advice.  We could not contact the customer with the contact details provided.  The customer claimed to their bank that they did not authorise the transaction, and we hadn't yet issued a refund.  Thus we copped a chargeback.  The complaint fell on deaf ears with Shopify and after months the "chargeback query" process upheld the chargeback.

We have no control over the online use of someone else's credit card.  For years we used eWay and PayPal on another platform and this never occurred.

How can they charge the merchant for something out of their control?  This is unfair and I'll probably switch to eWay and cop the higher transaction fees.

I've made a formal complaint to the ACCC.




Reply 1 (1)

Shopify Partner
284 17 62

Hi @Bento75 

I'm sorry to hear you had your first chargeback issues. As unfortunate as it may sound, almost all eCommerce merchants will eventually experience a chargeback especially if you start to scale your business and more people shop online.

I can tell you for certain that even eWay and Paypal have chargeback issues as well and this is not just isolated to Shopify Pay, which I assume you are referring to and it just depends on what type of customers you get. Sometimes you will have a bad apple once in a while, so to speak. 

With this said, you mentioned that you could not contact the customer. Once this happens, you should always refund or cancel the order as soon as possible as this is a red flag. Also, if you still have a relatively low amount of orders, you can look into enabling Manual payment capture within your Shopify shop so that you can have time to reach out to the customers without the risk of a future possible chargeback occurring again. 

I hope this helps a bit. 


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