We received a chargeback for "items not received" but had a ton of evidence showing that the items were actually received. They ordered a digital item, and that was shown as downloaded by the customer. They also ordered a print item, which according to the tracking, was also shown as delivered. We received no emails from the customer, and this was not their first time ordering and emailing us, so they knew how to email. They just never did.
We sent all of this evidence, with screenshots, in a response to the customer's bank. Weeks later, the resolution is that they side with the customer. Despite zero evidence on her behalf.
Can we go higher than this to get our money back? And not get charged a ridiculous chargeback fee when we are clearly in the right? It's so so frustrating to have this happen, especially during quarantine when our sales are already down.
Thanks for any help you can offer!
Good luck with this. Same thing happened to us. Google Maps even shows the item we sold our customer on their building.
It was with American Express, so I called them up asking why they would rule in favor of the customer even though our evidence shows the customer has the item. They said with shopify (or any merchant processor) they do submit a reason why it was ruled one way or another and the ability to counter the ruling. Shopify does not provide this to their store owners nor the option to dispute the ruling, which I think is very unfair (class action lawsuit?) and the only response I get from shopify help is "sorry, we are not able to give any additional information".
I am currently having this same exact problem and have argued with Shopify that they are supposed to provide us (their clients) with the appeals option. I feel this is class action lawsuit material. You can't get into the financial arena, collecting fees off of transactions, and not be properly prepared as a credit card processing company. This is completely ridiculous. Now I will only accept payments via Paypal. They are wayyyy more professional and equipped to process payments. I've been in business for 25 years and I have never seen anything like this.
Since posting my original post...the same thing happened again. Customer has the product, full refund. No way to appeal. Now I have to go find a lawyer to take these people to court. If it was smaller items I would just chalk it up to the cost of doing business but the average ticket price is $5000-$8,000 so its a huge financial loss for our company each time Shopify does this. It is beyond ridiculous how Shopify handles chargebacks.
It's very unfortunate for merchants, but Most banks will side with the customer depending on the type of fraud involved. Some of the common reasons banks return the money is because a bad-actor was able to conduct a more sophisticated type of fraud that looks very close to the information stolen by a customer.
Do you have any fraud preventive measures in place for your shop?
Here are several guides that might help you learn more about looking out for fraud behaviors.
What payment gateway provider are you using? Was the chargeback claim reported directly to the bank or was the case opened with the payment gateway?
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