“Wait wait, the deal gets worse!”

[anuthee]

Paypal Express checkout replaced by PayPal Wallet <--- you REALLY don't want this

LINK to announcement

This change was foisted upon my store. It has negatively affected our business  in the following ways:

• Paypal seller protection no longer protects us from chargebacks as advertised. 
• Paypal no longer has a record of our transactions and is unable to provide support, leaving us with poor Shopify chat support. Essentially we have two titans blaming each other and we are left holding the bag…of you know
• We are unable to switch off Paypal installment payments which leads to customer confusion and chargebacks. 
• We are unable to deny Paypal payments for international orders. This was beneficial for us. 

Essentially we have lost controls and support for no benefit. 

We should be allowed to switch back to PP Express and continue to use Shopify payments. 

[anuthee]

Ian
5:29 pm
Hi Anuthee,

Zam here again from Shopify – Support Advisor Team!

Thank you for your patience and understanding! I wanted to follow up regarding our recent conversation about the PayPal Wallet integration on your Shopify store.

After discussing your concerns with our Business Operations Team, I understand how important it is for you to have the payment options that best suit your business needs. Currently, if you have Shopify Payments activated, the integration with PayPal is through the PayPal Wallet, and currently, the option to revert back to PayPal Express Checkout is not available without deactivating Shopify Payments.

If you wish to use PayPal Express Checkout, you would need to deactivate Shopify Payments. However, I completely understand that this may not be the ideal solution for you. Your feedback is invaluable, and I encourage you to share any additional thoughts or concerns you may have. I can assist you by submitting a feature request to our Development Team. At Shopify, we value the ongoing progress and advancement of our platform, and we rely on feedback and input from merchants like yourself to achieve this objective. Therefore, I sincerely appreciate you informing us about this requirement. Additionally, I will consolidate similar requests to reinforce our petition. Rest assured, I will make every effort to ensure that your voice is heard, increasing the likelihood of incorporating this functionality into our future innovations.

In the meantime though, if we have any updates to share on this feature request, we'll post more information on our Announcements page, as well as our changelog, so please keep an eye out there.

I appreciate your patience as we navigate through this, and I’m here to assist you further if you have any more questions or need additional support. Your satisfaction is our priority, and we want to ensure you have the best experience possible with Shopify.

Thank you for your understanding, and I look forward to hearing back from you! 😊

Please don't hesitate to reply to this thread if you need further assistance or in case we missed out on anything and we'll get back to you as soon as possible or if you'd like, you may also get real time assistance from a live representative via Chat.

Kind regards,
Zam | Shopify Support Advisor

[anuthee]

Hi Zam -

This is unacceptable.

XXXXXXXX has been with Shopify since 2017. Since that time we have used Shopify Payments in parallel with Paypal Express. It wasn't until Q4 of 2024 that the change was forced upon us.

The change nullified our ability to set boundaries within Paypal and nullifies Seller Protection. This is wrong and anti-competitive. Paypal and Shopify get to make a sweeter deal for each other and the little guys like us get less autonomy, less support, and less protection.

In the meantime, unless I want to switch platforms or otherwise martyr myself financially I will continue to post updates on the support forum thread I started regarding this topic. If Shopify isn't going to treat us fairly as a customer the least I can do is let other prospective Shopify customers know what sort of after-the-sale support they should expect to receive.

Begrudged,

- Anuthee

[ajweb35000]

Hello everyone,

I would like to highlight a major issue regarding the handling of PayPal chargebacks since their integration into Shopify Payments. This change has resulted in a total loss of control for merchants and the inability to effectively dispute decisions, exposing businesses to unjust financial losses.

Since the end of last year, Shopify has modified the way PayPal payments are processed by requiring them to go through Shopify Payments. As a result:

• All PayPal transactions are now consolidated under Shopify Payments and are no longer directly visible in the merchant’s PayPal account.
• PayPal disputes are handled exclusively through the Shopify dashboard, preventing direct contact with PayPal to challenge a decision.
• Chargebacks are resolved without any possibility of appeal, even when valid proof of delivery is provided.

Before this change, merchants could communicate directly with PayPal, submit evidence, and defend disputed transactions. Today, this fundamental right has been removed by Shopify, with no alternative solution provided.

Several recent cases highlight alarming flaws in the chargeback process:

• Chargebacks have been decided in favor of customers despite strong evidence (tracking details, signatures, etc.).
• PayPal has stated that it no longer has access to these transactions or disputes since everything is now processed via Shopify Payments.
• Shopify refuses to handle disputes and redirects merchants to PayPal, creating a back-and-forth situation with no resolution.
• There is no clear information on how PayPal disputes are managed through Shopify Payments or what recourse merchants have.

In summary, Shopify has removed direct access to dispute resolution without providing an equivalent alternative to ensure fair handling of chargebacks.

Questions for Shopify :

1. Why does Shopify prevent merchants from disputing PayPal chargeback decisions when this was previously possible?
2. What is the exact process for handling PayPal chargebacks via Shopify Payments? Who makes the decisions and within what timeframe?
3. What guarantees does Shopify offer to ensure that disputes are handled fairly and impartially?
4. Does Shopify plan to restore an option that allows merchants to interact directly with PayPal for disputes?

The problems : 

• Unjust financial losses for merchants who are now unable to appeal chargebacks.
• Lack of transparency in how Shopify manages these disputes and how decisions are made.
• Unfair treatment of merchants, even though Shopify continues to collect fees on these transactions.

For you : 

• Raise their voices about this issue with Shopify support and on this forum to demand answers and a concrete solution.
• Report the issue to e-commerce protection organizations (such as the FEVAD, DGCCRF, or equivalent regulatory bodies in other countries) if no corrective action is taken.
• Explore legal options if Shopify continues to restrict access to fair dispute resolution.

This issue affects many merchants. If you have also encountered difficulties with PayPal chargebacks via Shopify Payments, please share your experience here. The more merchants speak up about this issue, the more pressure Shopify will face to address it.

Thank you all for your feedback.

Thank you for All 🙏 for your help

[amanda-91]

I'm here because I just realized we aren't covered by PayPal seller protection anymore. So, literally what's the point of offering PayPal, paying higher transaction fees but losing the only thing that made it worth it? No thanks.

PS - it's worth sending a feedback on the help page linked from OP's post to encourage Shopify to mention the costs of PayPal-via-Shopify: namely higher per-transaction costs ("no additional fees" is not accurate), and loss of seller protection that we were used to as merchants. The help page is misleading when considering costs-benefits of this payment method.

[Bruce_Nolan1]

I had a chargeback come through where the buyer paid via paypal wallet, apparently it was a fraudulent transaction and after shopify submitting the evidence, I lost the case and my money. Now PayPal says its paypal that needs to handle the chargeback and paypal says its shopify. Basically I am screwed and out my money after doing nothing wrong and following the exact guidelines shipping the item out to the buyers confirmed address. Unbelievable that we pay all of these fees and now not even protected under their protection policy.

[anuthee]

Was it essentially the same scenario as ours? IOW Did your sale show Paypal Seller Protection eligible?

[Bruce_Nolan1]

Yes it shows the PayPal seller protection eligible in the order details. This is total fraud by shopify and paypal.

[anuthee]

Perhaps collusion is the correct term. 

https://www.justice.gov/atr/report-antitrust-concerns

[Bruce_Nolan1]

Thanks, I will file a report.

[TSW2025]

This is happening to us right now! It’s ridiculous. Ups has a PHOTO and tracking of delivery. But we have no idea what’s being submitted because the charge back went through Shopify. Even though they’re saying we have to contact PayPal. Back and forth. It’s clear we had been paid form Shopify, so they should handle this. But nope, they’re saying it’s PayPal. Customer is saying items weren’t received, $160 plus product down the drain!! And Shopify does not give a F. 

[ayrity]

Any update on this at all? I need to keep shopify payments (for POS CC readers to work) and get paypal express back to paying through paypal. What can be done?

[anuthee]

Nope, we're over a barrel. We can only use PayPal Express if we choose (to pay more for) card processing and POS with a 3rd party. Straight up anti-competitive collusion between Shopify and PP. Nothing we can do but run it up the flag pole until there is a threat of DoJ or Class-action; then maybe something happens.