About a 20% hold and the payment alternatives

Payments + Shipping & Fulfilment
1

So I started dropshipping last year and started succeeding towards the end of December.

I have literally one charge-back, which I can argue isn’t really my fault but a customer who simply filed one as soon as he could, Klarna more or less automatically taking his side with little interest in what I had to say, despite trying to communicate with both them and the customer (and failing).

Something triggers a hold on my store two days ago and I get a review. I provide all the necessary info and such, and I still get a 20% hold because apparently all “dropshippers are an increased risk” and “we’ve seen a risk of charge-backs in your account”.

This… is an overreaction to say the least, but I’ve appealed to reason and asked to provide context about the single charge-back, so we’ll see what happens. Hopefully they’ll listen to reason.

Now, my question is actually about the payment options. I had Klarna… I think “Klarna Merchant” enabled for a short while, and a Shopify support worker (Sven) informed me that it was unwise to have that and Shopify’s own payment processor enabled at the same time, since both take out a percentage of the revenue. He said I paid an extra 2% or so because of this.

Anyway, in the latest e-mail I got from the Shopify “risk department” (legal department?), there was something about payment options.

Am I understanding this correct and I can enable “Klarna Merchant”, Klarna’s own payment option, and run that exclusively, and disable “Shopify Payments”? The e-mail said that this option would allow the store to ‘get around’ the 20% hold, which implies it’s permitted, possibly even encouraged. That’s somewhat acceptable if that’s the case.

Any answers appreciated. Hoping to resolve this soon. Regards, JM

2

Update: It seems enabling another payment processor (Klarna) and disabling Shopify Payments works. But now I have to get another payment processor if I decide to sell outside of Sweden (and other Klarna-positive countries).

I still don’t understand how it’s permitted to force people off Shopify Payments for, yes, a single charge-back. The reasoning from the e-mail I got was clear. “You’re a dropshipper, therefore we don’t trust you. You have a history of charge-backs so we’re holding 20% of your revenue for 90 days”.

Someone please tell me if it’s supposed to be this way?

3

Yes, I agree to the Shopify about having 2 payment processors at the same time, but getting 20% on hold just because of a single chargeback is heartbreaking.

It’s always smart to use precaution by dealing with chargebacks as soon as they occur, and even to prevent the occurrence as well whenever possible. Chargeflow can help do all of this with automation to save you time, money, and peace of mind.

Ultimately, the ‘bad image’ of Dropshipping is also a player in this situation.