Failed payout from canceling high fraud order

[Pensamientos]

Hello,

I am wondering why Shopify is charging me the sales tax for an order I canceled based on their high fraud risk? 😂😂😂 can someone on Shopify’s side please help me resolve this?

[Shay]

Hey there! To clarify, are you referring to the processing fee for a now refunded payment? Shopify does not refund processing fees, so if the payment went through, even if you cancel or refund the order, the gateway processing fees are not refunded. 

Let me know if that answered your question. 

[Pensamientos]

It seems like Shopify wants to deduct fees from my Shopify balance (which is currently at $0) for the transaction that I canceled and refunded. So it seems like I’m “paying” for having been a potential victim of the fraud.

[Miakay]

How can victims of fraud pay for the consequences that comes with high risk order. I think I'm done with shopify on this one. Since they cannot offer protection, what the need. I cancelled the high risk order immediately and they want to charge me. Am so done with them.

[Dirk]

Hey, @Miakay 

I understand chargebacks and fraudulent orders can be a stressful part of running a business. Unfortunately there are scammers out there and it's a part of running of a business. With that said, we do have Chargeback Protection if you meet certain eligibility requirements. You can learn more about the feature here

If there is anything else I can help you with, please let me know.

[dylanpierce · Accepted solution]

Sounds like you might have automatic payments enabled.

This means that the full amount is charged to the customer's card immediately, so you'll be paying transaction fees even if you end up refunding the customer.

It's much safer to switch to manual payments.

The card is authorized for the full amount of the order, but you have full control of actually charging it later after the fraud analysis is finished.

Here's how to set up manual payment capture: https://getverdict.com/blog/how-to-setup-manual-payment-capture-on-shopify