Cancelled an order then customer did a chargeback

[Meredithdavey]

I cancelled and order at 8am. And Shopify stated that the refund was processing. They then filed a chargeback even though I issued a refund.

What do I do?

[Howie10]

Chargeback on Cancelled Order??

Chargeback timing – Banks don’t care that you canceled; they only look at the fact that the authorization was attempted and captured. If Shopify had already captured the payment (even briefly), it can trigger a dispute. The $15 fee – Unfortunately, that fee is standard and applied per chargeback, regardless of outcome. Outcome – Since you canceled quickly and didn’t ship anything, you’ll have a much stronger case when Shopify submits evidence on your behalf. Typically, you’d provide proof that…

[tim_1]

Depending on the number of orders, you may want to switch to “authorize only” instead of “capture”.
This way, if you cancel order there may be no grounds for chargeback.