How can I challenge a customer's chargeback decision on my online store?

[KristyL]

I had a customer file a charge back. I immediately reached out to the customer thinking they didn't receive the package or something was wrong. No reply. Emailed a few days later and still nothing. I responded to the chargeback showing the tracking from my door to the customers postal box in a very detailed email with pictures as proof. Shopify sided with the customer. HOW? $200 might not be a lot of money to some businesses here but it is to mine. If I showed proof of the package tracking TO THE CUSTOMERS ADDRESS how in the world can they make me pay? Is this where Shopify is now? It seems like it's just lazy and easy for them to just side with the customers even though there is proof? It is going to create a HUGE problem when everyone can just file chargebacks and get everything for free. 

I guess my question is: Is there an appeals process for this? Anything I can do to reverse this? 

Also, how do I block people  from being able to purchase from my shop again? 

Appreciate any help or insight. 

Kristy 

[Maz]

Hey, @KristyL!

Thanks for sharing your feedback on your recent Chargeback with this customer, and I am sorry to hear this has happened.

For some context, it is not Shopify who makes the final decision but the bank. 

The decision process lies entirely with the bank. Our role in Chargebacks is entirely transactional, in that we relay information between parties involved. We don't have any sway on the final decision.

We just allow the merchant the opportunity to resolve the situation through our platform.

When a chargeback is initiated by a customer, the credit card company reaches out and asks for the funds immediately plus the adjudication fee. We are then required to remand the funds from you. The customer’s credit card company holds the funds while they investigate the charge, which is a standardized process. It’s not an easy situation nor is it something we want for our merchants. 

Unfortunately, Shopify doesn't provide insurance or protection against fraudulent claims or chargebacks and once the decision has been made by the bank it is final and cannot be appealed unless the customer cancels the chargeback.

Protecting against these risks is the responsibility of the business owner. However, we do provide tools and resources to help businesses manage their transactions and minimize the risk of fraud, as outlined in our blog here.
 
Ultimately, selling online comes with risks, and it's important to protect yourself and your business by having clear policies and procedures, keeping thorough documentation, and being vigilant about fraudulent activities. It seems like you had taken the correct steps here, but I am wondering if there is anything else we can do to help you prevent this from happening again in the future? Do you use the fraud analysis tool here or have any fraud prevention apps installed?

I can definitely appreciate the frustration in a situation like this, as chargebacks are definitely difficult matters to deal with. It is important to note that chargebacks are a reality, and there will always be a chargeback risk associated with selling online on any platform. While Shopify can certainly assist with helping you reduce the risk of these disputes - we do not have the power to prevent every single case. Chargebacks are always unpleasant, and I’m hoping in the near future there’ll be a better system in place that is more well-balanced. 

Let me know if there is anything else I can help with.

[JaxBard]

I have this same issue and it is preventing me from selling on SHOP, and this was almost a year ago! What can I do ?

[Maz]

Hi, @JaxBard!

Thanks for reaching out on this thread.

While I don't have access to the specifics of your account or situation, my guess would be here is that your store had rate of more than 1% of chargebacks in the last six months, which would deem you ineligible. You can view this information here in the Shop Merchant Guidelines page.

However, you did mention this was a year ago, I'd recommend getting in touch with our live support again to see if you are eligible now. You can reach live support here at the link.

Please follow the prompts given by the virtual Help Center assistant in order to access our live chat support. Thanks so much!