PLEASE HELP!!!! Shopify is WRONGFULLY holding money from a Refunded order that also received a Chargeback. We were late delivering a product to a customer (production/fabrication issues). The customer requested a refund, we gladly agreed and issued a full Refund of $7,555.50 for the late and undelivered product. Customer was notified by email. 3 hours later we received a Chargeback for $7,555.51 plus the $15 Chargeback fee. The 1 cent we did not refund was the shipping cost (which is another total frustration with Shopify not allowing this line to be $0). Shopify Support stated that because it was not a FULL refund, there could be a Chargeback. Support said that I have to wait for the full process of the customers bank to decide the status of the Chargeback. I am totally OK refunding the customer's $7555.51. However, we are currently out an additional $7,555.50. Shopify Support is of no help whatsoever - just saying that if the Chargeback rules in customer's favor we can I can submit a "Good Faith Collections Request that is time consuming and not always successful" to get my $7,555.50 back. Any Advice? Thanks!
I am so sorry to hear about this happening. I can absolutely relate and understand how frustrating a situation like this is.
I just want to reassure you that when you respond to the chargeback, if you can provide very solid and clear proof of you refunding the customer, this can work in your favour and doing so will be helpful to your case.
It's very possible that the customer also got ahead of themselves and called their bank without realizing that you'd quickly and gladly agree to issue a refund.
Have you tried contacting the customer about this?. The fastest resolution is going to be through the customer calling their bank back and cancelling the chargeback.
I would advise trying this first, if you can't get them to agree to do this or aren't able to reach the customer, then you'll need to respond to the chargeback with all of the evidence of your communication and refund to the customer.
Moving forward, I recommend looking into chargeback protection with Shop Pay and/or considering fraud protection apps that can help you avoid this in the future.
If there is anything else I can help with or clarify any of the above, please let me know! Best of luck.
Ren (Shopify Staff),
Your last sentence ......"If there is anything else I can help with" is a blatant and arrogant assumption that your response was helpful. It was not. Followed by a "Best of Luck"! Really? Shopify is withholding $7,555.50 of my money and your response is Oh, good luck with that! C'mon Shopify step up and do the right thing!
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