Chargeback Fraud - Partial Refund not Refunded to Merchant

[jamjamexotic99]

A Customer opened chargeback for order in the amount of $250, we had partially refunded this customer $200 before the chargeback, but now the bank refunded the customer the full order amount $250, and not returned us the partially refunded amount of $200, I contacted shopify support and they said they couldn't do anything about the $200, and will investigate, but I doubt it will go anywhere, I also read on the forum that this had happened to many others. 

How can banks or Shopify even do this to us merchant? Any thought? Anyone was able to get the partially refunded amount? This is very unfair to us merchants, especially when many of these chargebacks are not even substantiated or legit.  

[Chargeflow-Avia]

I'm really sorry to hear about the frustrating situation you've encountered with the chargeback issue. It's indeed a challenging aspect of being a merchant, especially when you've already shown good faith by issuing a partial refund.

Unfortunately, the process involving banks and platforms like Shopify can sometimes be complex and not always favorable to merchants. These institutions follow strict protocols, and their decisions are often influenced by the need to protect consumers, which can unfortunately result in situations like yours.

However, this experience, as tough as it is, can be a valuable lesson. It might be beneficial to consider using a professional chargeback management service. These services specialize in handling such cases and often have a higher success rate in disputing chargebacks, particularly in scenarios where you've already issued a refund. They understand the intricacies of the process and can advocate effectively on your behalf.

Remember, it's not just about disputing chargebacks, but also about understanding the system to protect your business in the future. Don't lose hope. Many merchants have successfully navigated these challenges and come out stronger.

Best of luck moving forward 💪🏼

[airfilterhub]

This is an unacceptable mindset to theft and fraud. "oops oh well" is not part of doing business when it comes to theft. This is not a "lesson" for the merchant. The customer must face the consequences of their fraud if it is intentional and the excess funds are kept, not the merchant. This is accomplished by the merchant calling their state police. 

[jamjamexotic99]

Update: After 3 months talking to shopify support, they said it's not possbile to get the partial refunded amount back, so that means we not only lost the whole sales amount but also paid the customer or the bank $200, this is beyond bs.

[Shay]

Hi @jamjamexotic99 

Thank you for sharing those details and for providing a follow up here on the outcome. This is definitely not an ideal situation to be in and I'd like to flag your ticket for a review to ensure all the proper steps were taken to find a resolution for you. Can you please share your ticket numbers about this situation with me here? 

Our community support team is not able to review merchant account or tickets, but I do have the ability to flag a ticket for review by our internal support team. In these situations, where a partial refund was provided and then a chargeback was opened, there are sometimes actions we can take to help return the initial refund amount back to the merchant. i am not sure why we were not able to in this case, which is why I would like to have your ticket(s) reviewed. It's important to note that I won't be able to share information about the ticket here in the community, but if there are any updates or follow ups needed the appropriate team will reach out to you via email. 

[airfilterhub]

I would recommend compiling your evidence and calling your state police on the customer. That is theft and fraud.