Customer chargeback with signature confirmation, reached out and said he doesn't want it anymore...

[LonganMerch]

Hello all,

I just received this chargeback from one of the customers, it's one of the high-value item (over $200) on our store. We use the USPS Priority Package with signature confirmation. I reached out to the customer and explained the situation, such as based on the USPS tracking record, someone in your name signed and received the package, he said he never received the package. I asked if he has a surveillance camera or anything to see if the package is stolen, and he dodges the question. Then, I offered to do a second delivery if he has another location that he can receive the package safely, I haven't mention anything about "you have to cancel the chargeback first" then he replies with "No I don't want it anymore"

So... how likely am I going to win or lose the chargeback with their bank? Here's what I have:

• Priority Package with signature required confirmation signed under customer's name
• The customer has never reached out prior to the chargeback
• Email exchange conversation where the customer refused my alternative solution (sent free replacement) because he doesn't want the item anymore 

[Beacon-Jason]

Hi @LonganMerch 

Was the package sent to the original address that it was intended for or was it sent to a secondary shipping address different from the original shipping address? From the limited information you have provided, this sounds like a friendly fraud case. If anything it could be that the customer simply wants a refund while wanting to keep the item. If so, you should report this to your payment gateway provider and submit proof of evidence, delivery, tracking, and willingness to resolve this issue.

The ultimate decision for winning or losing a chargeback solely depends on the bank, but the likelihood of winning is quite low, but you should always try to fight the case. 

[LonganMerch]

The original package w/ signature confirmation was sent to the address it was intended for. I asked the customer if he has an alternative address that he can receive the package, I mean, I was thinking that if your package can be stolen from the address with signature required service, then an alternative address (PO Box?) would be safer. The customer just replied with he doesn't want it anymore... The customer didn't mention anything about refund, return, or replacement at all.

I use Shopify Payments and it's a domestic AMEX charge. Shopify asked me to submit proof before 10/20/2020, I am worry that if I lose the chargeback case then there's no way for me to fight it anymore

[Beacon-Jason]

Don't send a second package out if the customer simply wants a refund. Before submitting the evidence always try to work it out with the customer. Tell them that they have opened up a chargeback case and that if they simply wanted a refund, tell them that they should close the case first and return the original item (perhaps it was signed and received by a family member or friend).

Tell them that closing the case and returning the item (if received) would speed up the return process for them rather than going directly to the bank which can take up to several weeks or months.

[LonganMerch]

I understand. But the customer insisted that he has never received any items from us, and he didn't sign anything. He wants a refund because he never received the item. I don't understand why he wouldn't reach out to us first before he files a dispute, and rejected our alternative solution for sending the item again if he didn't receive what he purchased. 

I can't refund the money when the customer simply said he didn't receive it but the tracking & signature showed someone under his name received it. 

[Beacon-Jason]

Assuming that the customer is telling the truth that he never received the item despite having signature confirmation and proof of delivery then the best route for you is to offer a direct refund (after having them close the chargeback case manually). Otherwise, your business will be hit with additional chargeback fees and your store will have a higher risk profile, which means that you can even lose your partnership with your payment gateway.

[LonganMerch]

I am aware of that but based on your suggestion (asking them to close the case manually and refund the full amount), having signature confirmation seems worthless. From a business perspective, if every customer that purchased a high-value good from my store, claimed they didn't receive the item when there's proof of delivery, and I would have to send a refund to every one of them, we are a small business and we wouldn't be able to survive. 

Thank you for all the help tho, appreciate it.

[Beacon-Jason]

You really have no other path if the customer is unwilling to work with you. Fight the chargeback case by submitting ample evidence for the payment company to work with, or try to resolve this issue with the customer first. The latter option is always better for you as a business despite the possible loss. If you are worried about not getting your money back then fight the case and never allow the customer to make a repeat purchase by disabling their account.

These types of friendly fraud cases are rare and only happen less than .5% of the time. I know this because we see a lot of transaction data coming into our fraud system every single second.