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Hi,
We have received multiple chargebacks from customers for "Product Not Received" chargebacks, that were fulfilled with Shopify Protect active. We just recently lost a charge back for $667 due to this. We shipped with USPS Priority mail with signature confirmation and it was marked delivered and signed for.
How is it possible to ship expensive orders with shopify protect if it signature delivery does not prove that an item is delivered? Do we need adult signature? Do we need to somehow get the delivery person to get a photograph of their face with the item in-hand? What use is shopify protect if it doesn't cover the merchant?
We are going to be forced to implement a policy of canceling all orders over $250 and emailing to request Paypal payment method as it seems to be the only one that covers the merchant with their seller protection. Including against "Item not received" when there is a signature confirming they received the package.
Is there something I'm missing in regards to Shopify protect to be able to ship expensive orders?
Thanks,
Zach
This page outlines all of the conditions that need to be met, in order for Shopify Protect to work:
https://help.shopify.com/en/manual/payments/shop-pay/shopify-protect/considerations
Then if you look at this page:
... it sounds like Shopify Protect only applies to chargebacks where the reason is "unrecognized" (ie. someone purchased the product with someone else's credit card). It doesn't look like "did not receive item" is one of the reasons that Shopify Protect helps with.
I'm not sure how it's possible that you could of lost of chargeback, where you have proof from USPS that the product was actually delivered ... I'm wondering if you forgot to include links/screenshots of order tracking when replying to the chargeback?
With all that said, I agree that PayPal does a great job at protecting sellers. If you wanted to deactivate Shopify Payments, and only use PayPal -- then you could definitely do so ... you'd just be charged a transaction fee by Shopify for using a third-party payment gateway exclusively (the fee % depends on which monthly plan you're on, between 0.5-2%).
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Wait, Shopify is surprised that the credit card company/bank approved the chargeback??? Where have you been the past 5 years? These companies rubber stamp approvals on all chargebacks no matter how indisputable the evidence. That's why Shopify has to start defending it's customers and fighting these fraudulent chargebacks. It's internet shoplifting. I've found Shopify Protect to be absolutely useless, every form of fraud is claimed to fall under the "not eligible" category. You're just encouraging more and more of this so called friendly fraud.
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