Accepting credit cards, warehouses, and shipping and fulfilling orders
I received a chargeback on one of my order of $15,030.35 SGD.
I felt the order was a bit off so I hold on the order to not fulfil it, But I kept on calling the customer but I did not received any news from it. I received the payout and I was ready to return once someone call so I received the chargeback notice and I was happy to return but to my understanding I needed to return more then what I received because there is a transaction fee which Shopify imposed on me. I thought on such cases we sellers and shopify will return the fee together to the bank. But instead shopify push the responsibility to me? Isnt Shopify supposed to help me on this but instead they are happily earning the transaction fee and forcing me to return more then what I supposed to return? Does that make any sense? I contact the support advisor and they choose to end the chat. At this point I am not sure what to do
Hi @jarbarlar
First, off I'm sorry to hear you're in this situation, that's very frustrating.
It sounds like you have payment captured enabled, which will automatically capture payment on the customers card when they place their order. Capturing payments means that the amount is captured from the customers credit card and that will incur both a Shopify transaction fee as well as make you liable for a chargeback.
Even if you refund a processed payment, the payment itself can still be disputed as a chargeback.
If you haven't yet I highly recommend enabling manual payment capture. Here's a short guide on how to do that.
You're still at risk for a chargeback even if you immediately cancel and refund orders, this is because your checkout has automatically processed the payment through the gateway.
Manual capture instead only authorizes the amount of the order. It doesn't actually capture the full amount until you either manually accept it through the order details in Shopify or use Shopify Flow to automate this process.
But it's too late for this case, the payment has already been made. You'll now have to pay the processing fees as well as the standard Shopify dispute fee.
I highly recommend enabling manual payment capture in your Shopify checkout settings, then for these high risk orders you'll have some breathing room to verify the customer details before capturing the payment. In the future, consider a policy such as if the customer cannot verify their order or is unreachable within 7 days, then cancel the order.
Since no payment was actually captured, then you won't have any transaction fees nor risk of a Shopify Chargeback processing fee.
Hope this helps, please let me know if I can answer any other questions.
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