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Topic summary
Merchants are expressing frustration over chargebacks they consider fraudulent, where customers receive products (confirmed via tracking) but successfully dispute charges through their banks. Multiple sellers report losing disputes despite providing delivery proof, customer admissions of receipt, and even in-person sales documentation.
Key grievances include:
- Banks ruling in favor of customers despite clear evidence of delivery
- Chargeback fees ($15+) added to lost revenue
- Shopify Protect failing to cover claims when buyers select incorrect chargeback reason codes
- No merchant representation during bank dispute processes
- Fraud detection fees charged even when merchants cancel suspicious orders
Financial impact:
- Individual losses range from $600 to $4,891 per incident
- One merchant reports a $3,500 in-store purchase reversed despite video evidence and police report
- High-ticket item sellers particularly affected, with some now suing customers (reportedly winning in court)
Proposed actions:
- Multiple participants express interest in organizing a class action lawsuit
- Targets mentioned: Shopify, payment processors (Visa, Amex), and banks
- Some considering FTC complaints for deceptive advertising of Shopify Protect
- Merchants questioning the value of transaction fees without fraud protection
The discussion remains open with participants sharing contact information to coordinate potential legal action.
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