Payment for Missing Delivery was reversed

[martinmitchell]

I cant believe that after shipping a order to a customer that the customer immediataly filed a claim that the item was never delivered.  I provided the Tracking information date and time of Delivery from UPS to shopify as proof that the item was delivered. Shopify sided with the Customer and took the Money back out of my account.

Why is the Store owner responsible for the missing item that could have been a theft from a porch.  Why would I be out of the Item, the Money and the Shipping Cost?  seems like perhaps selling anything online has Risks that you may never get paid.  Why doesnt Shopify have insurance for this?

[Maz]

Hi @martinmitchell!

Thanks for sharing your feedback on your recent Chargeback with this customer. 

Firstly, I’m sorry to hear that you’ve received this charge back. They’re always unpleasant, and I’m hoping in the near future there’ll be a better system in place that is more well-balanced.

It's important to have a clear refund and return policy on your website, outlining the steps a customer can take if they have an issue with an order. This can help to avoid misunderstandings and disputes. Second, it's important to keep thorough records of all transactions and shipping information, including tracking numbers and delivery confirmation. This documentation can be used as proof of delivery in case of disputes as you mentioned.

Just to clarify, Shopify is the medium between payment gateway/credit card company and customer, we don’t initiate the chargeback sequence or have any say in how it’s decided. We just allow the merchant the opportunity to resolve the situation through our platform. When a chargeback is initiated by a customer, the credit card company reaches out and asks for the funds immediately plus the adjudication fee. We are then required to remand the funds from you. The customer’s credit card company holds the funds while they investigate the charge, which is a standardized process. It’s not an easy situation nor is it something we want for our merchants.

Unfortunately, Shopify doesn't provide insurance or protection against fraudulent claims or chargebacks. Protecting against these risks is the responsibility of the business owner. However, we do provide tools and resources to help businesses manage their transactions and minimize the risk of fraud, as outlined in our help center here.

Ultimately, selling online comes with risks, and it's important to protect yourself and your business by having clear policies and procedures, keeping thorough documentation, and being vigilant about fraudulent activities. It seems like you had taken the correct steps here, but I am wondering if there is anything else we can do to help you prevent this from happening again in the future? Do you use the fraud analysis tool here or have any fraud prevention apps installed?

[martinmitchell]

Records were kept and supplied during this issue. Proof of delivery from UPS and Tracking information as well. I don’t  believe this response is a answer to the question in terms of liability with the exception of response saying there are risks involved with e-commerce 

[Maz]

Thanks for your response @martinmitchell!

I can appreciate that this may be a frustrating situation to be in, and I am sorry to hear that is not the answer you are looking for.

With regard to the protection for business, Shopify's role in chargebacks is to just show the transaction and what is going on, the bank makes the final decision here for the customer. I'm not sure why the bank sided with your customer, I wish I knew as this would help a lot of other people too. Shopify does not directly provide insurance or protection against chargebacks at this time, however if you'd like I can pass this feedback on to our developers for you, and it may be something that is considered in the future.

Ultimately the decision process lies entirely with the bank. Our role in Chargebacks is entirely transactional, in that we relay information between parties involved. We have as much sway on the decision as a merchant does. The only course after a chargeback is lost is to speak with the customer who initiated the dispute or to use an app like Signifyed here at this link for insurance and protection to prevent losses in the future.

If you have any more questions please do not hesitate to ask.

[martinmitchell]

signing up for a 1500.00 month app to protect against fraud is not a solution to the issue of my

issues

[martinmitchell]

Not sufficient response to issue