Chargeback Fraud

1 0 0
We have a customer purchased Two items (as product A = $500, & product B = $400) under One PO and paid via his credit card thru Shopify payment method, and then he e-mailed us that he would like to cancel the product A and only need the product B, so we did the partial refund $500 amount for the product A from the original order page on Shopify, and shipped the product B. 
3 weeks later, the customer told us that the product B is defective and would like to process the return/refund, so we provided the pre-paid return shipping label to customer for sending back the product. 
When we received the product B returned, we found out the customer filed the charge back on this order transaction for total $900 on the same day we received the returned item, so we're not able to issue this $400 refund to customer thru Shopify order page once the charge back process started. 
We e-mailed to customer, and asked him to cancel the chargeback, then we can process his $400 refund, but no answer, no reply, and even no phone call pick up. 
We submitted all the information and timeline document, to shown that we already processed the $500 partial refund to customer 3 weeks ago, and the refund transaction already done, the $500 has been taken from our Shopify payout. 
But end up that the bank gave the customer favor, with $900 total refund from the charge back, but it should only $400, not $900!
We lost $900 + $500 from this transaction, contacted to Shopify customer service but they told us there is nothing they can do...
The buyer's bank is helping this customer doing the fraud.....
Replies 3 (3)

Shopify Partner
283 17 61

Hi @Kevin_Wood99 


First of all, really sorry to hear about the chargeback.


2nd, are you absolutely sure that 900+500 = $1400 was actually taken from your bank account? As far as I know, banks can't and should not refund more than the total order amount made.


I would recommend you speak to someone higher up with Shopify payments or Stripe again and   to see if they would escalate your case and do an investigation. Explain that the $500 was already originally refunded back to the customer. You should not have to refund more than the original amount plus fees.  The bad-actor is essentially making $500.


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27 0 3

It’s likely that the customer has a long history of doing similar things. In the future, try and use a service like IPQS to detect high-risk transactions and avoid them as such.

3 0 0

This happened to us too, we lost $200 on top of the full order amount, Shopify also said there is nothing they could do, very bs,