Re: Customer chargeback after order is sent?

How to handle customer chargeback after order dispatch?

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I am new to shopify so please forgive me for my ignorance.
My wife has opened a store through shopify and she had her first sale.
However the customer failed to enter the tracking number on the provided shipping site, jumped into the conclusion that the shop is a scam and immediately told us to cancel the order.
She also told us that she is calling the bank for a chargeback.

Are we protected in any shape or form? We sent an expensive product with all details of shipment and everything. We tried to support her in every way.
What would happen if her chargeback goes through and she doesn't return the item - or not pick it up? Would our shopify balance be drawn out of the funds? That would mean we lose our expensive product and lose money in the process...

Any help would be greatly appreciated!

Replies 2 (2)

Shopify Partner
284 17 62

Hi @ozans Jason here with Beacon-fraud prevention app.


Sorry to hear about your chargeback experience. It's never easy to deal with chargebacks for new merchants and this questions get brought up quite often, so you are not alone! 


First of all, might I suggest you to always make tracking easy for your customers. Don't tell them to go to a site an enter a number. Instead, provide a direct link with the tracking number so that all it takes is a simple click and track. There are some other apps as well that will email the tracking update directly or even show the tracking information on your website directly. Simply, make it super easy for them to track their order.


As for as the chargeback case, prepare all the required documents and prepare to counter dispute it! Take lots of screenshots of the order fulfillment process and label each one showing that you did your part in making sure line of communication was clear with the customer and that you did everything you can to deliver the order on time. Provide a tracking number and take a screenshot that shows it was delivered to the shipping address provided. Providing a clear and concise document and make it super easy for the auditor to help you win the case. Chances are low, but If you win the case, the money will be returned to you in your favor.


If you lose the case, then the balance will be drawn from you and you will be charged additional processing fee. The fee differs depending on what payment gateway you are using. Paypal charges additional $20 for the chargeback.


You can try to ask the customer to ship the item back if it's an honest customers, but the likelihood is nill if you are dealing with a bad-actor. 


I know this is not an easy situation for any new merchants, but you must learn from this lesson and better prepare yourself in the future as it will happen at least once to every merchant. 

Decrease fraudulent orders, stop chargebacks with Beacon. The most customizable fraud and risk management system built for Shopify businesses

Shopify Staff
1033 82 133

Hello, @ozans.

I am sorry to hear you are dealing with this, chargebacks are a challenging aspect of e-commerce for sure. Firstly I would echo what @Beacon-Jason has suggested in that it may be worth looking into improving your order tracking system to hopefully avoid confusion like this in the future. As this is your first chargeback, I want to walk you through what a typical chargeback process looks like:

1. The cardholder disputes a credit card charge with their bank.
2. The cardholder's bank sends a chargeback request to the credit card company, and takes the disputed amount and a chargeback fee from you.
3. The credit card company asks you for evidence that the charge was valid.
4. You and gather evidence to figure out whether the charge was valid.
5. Shopify sends a response to the credit card company.
6. The credit card company reviews the evidence. The review can take up to 75 days after the response is submitted.
7. The credit card company resolves the chargeback.
8. If you win the chargeback, then the cardholder's bank returns the disputed amount to you, and Shopify refunds you the chargeback fee. If the chargeback is a partial win, then the cardholder's bank returns some of the disputed amount to you, and Shopify still refunds you the chargeback fee. If the cardholder wins the chargeback, then the disputed amount and the fee is not returned to you.

It is important to note:  Chargebacks are handled and decided upon 100% by the bank processing the payment, not by Shopify.

I cannot predict how this chargeback will go, but I do want to be clear that it is possible you could lose money. I would absolutely advise submitting all your evidence including emails, proof of delivery etc. This will all help to strengthen your case. 

I want to compile some information for you on how best to avoid fraudulent charges, and how to protect yourself from chargebacks in the future. I trust this helps, and I wish you good luck going forward. Thank you!

Ivy | Social Care @ Shopify

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