Chargeback Request in customer favour

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I have recently had the unpleasant experience of a chargeback request. And according to Shopify it has been awarded to the customer as a fraudulent transaction.

in turn Shopify have removed my stores ability to use shop pay.

This order was placed online. There was no indication that there was a fraud risk. I posted the item express post at the customers request and 10 days later, despite the item being delivered and confirmed as delivered by Australia post, the customer lodged the chargeback request. Now some 45 days later Shopify confirmed that it is a fraudulent transaction and the funds will not be returned to me. So I’m out of pocket the original sale, the shipping, a bank fee and the product has been confirmed as received by the customer.

The phone number and email provided by the customer is not valid so I can’t contact them.

Shopify will NOT tell me why the transaction is fraudulent despite both my bank the customers bank confirming that it is Shopify’s responsibility to provide this detail.

Has this happened to anyone else before and is there a process to lodge a complaint against Shopify?



Reply 1 (1)

Shopify Staff
2936 455 603

Hi @Impodimo, thank you for sharing this experience here for other merchants. I am sorry to hear that your ability to use Shop Pay has been restricted due to this fraudulent order. 


I am not sure why your bank, or the customers bank, would tell you to contact Shopify for details about the nature of the order. This decision is made solely by the customer's bank, not Shopify. Shopify is just the intermediary, providing the information you uploaded for the chargeback investigation to the customer's bank. The customer's bank reviews this information and makes a decision. A chargeback resolved due to a fraudulent transaction usually means the customer's card details were compromised and they are claiming they didn't make the order themselves. 


I know this situation is less than ideal. If you have additional questions about chargebacks please don't hesitate to let me know. 

Shay | Social Care @ Shopify 
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