Topic summary
Merchant canceled an order and initiated a refund in Shopify (status shown as “processing”), but the customer filed a chargeback anyway.
Key context:
- A screenshot (image) shows the refund marked as processing, indicating the refund hadn’t fully settled yet when the chargeback was submitted.
- A community link was shared pointing to a related thread for additional guidance.
Suggestions offered:
- Consider changing payment settings from immediate “capture” to “authorize only.” With authorization (a temporary hold) you can cancel without capturing funds, which may reduce grounds for chargebacks on canceled orders.
Notes/definitions:
- Chargeback: A cardholder disputes a transaction with their bank, potentially reversing the payment.
- Authorize vs. capture: “Authorize only” places a hold; “capture” completes the charge. Canceling before capture can help prevent disputes.
Status:
- No definitive resolution or step-by-step action for contesting the current chargeback was provided. Discussion remains open.