Charge back

Payments + Shipping & Fulfilment
1

Hi everyone,

I’m a Shopify merchant (5 years, no prior chargebacks) dealing with my first chargeback, and I’m looking for advice.

Here’s a quick rundown:

A client ordered a >$500 item on May 9th. My policy requires address confirmation before shipping.

May 15th: Client got an incorrect “delivered” notice from Shop App before I shipped (address wasn’t confirmed). I clarified.

After address confirmation, I shipped on May 17th via USPS overnight (paid extra due to storm warnings).

May 19th: Client became aggressive about tracking and opened a PayPal dispute.

May 21st: Package was delivered (client confirmed via email but remained hostile and won’t engage in the Shopify dispute).

Now, Shopify is handling the PayPal chargeback. They initially gave a June 7th resolution deadline but then said they’d charge back my account on May 29th (yesterday, based on current date). PayPal told me proof of delivery should resolve it, but Shopify seems to be an intermediary, adding confusion. Shopify also advised me not to correct an erroneous initial tracking number that had caused early confusion.

The buyer has the product and isn’t responding to the dispute. Shopify is taking funds from my account despite the June 7th deadline they mentioned.

My questions are:

Has anyone experienced Shopify managing PayPal chargebacks this way, with conflicting timelines and advice?

What’s the best way to proceed when the buyer has the item but is unresponsive, and Shopify is already processing the chargeback?

Why would Shopify add this layer instead of letting me resolve it directly with PayPal, especially when it doesn’t feel like it protects me (the merchant)?

This is incredibly frustrating for a small business. Any insights or similar experiences would be greatl

y appreciated!

2

Hello @RUEthlessIrons ,

Sorry to hear you’re going through this — it sounds really stressful, especially after running your store smoothly for years.

Yes, Shopify manages PayPal disputes when the payment is made through their system, which is why timelines
and control can feel confusing.

  • Submit clear proof of delivery (tracking + email confirmation) through Shopify’s dispute section.

  • Reach out to Shopify Support and ask them to confirm that your evidence has been sent to PayPal.

  • If things don’t go in your favor, and the buyer used PayPal directly, you might still be able to appeal through PayPal.

For the future, using PayPal directly (not through Shopify) can give you more control over disputes.

Wishing you the best — hope it gets resolved quickly and fairly!

3

Because the first tracking number was incorrect, make the correction impossible to miss rather than relying on the reviewer to reconcile it. Start the response with a five-line timeline: address confirmed, correct tracking issued, shipment accepted, delivery scan, buyer’s written confirmation of receipt. Label the original tracking notice as an error and place the correct carrier record immediately beside it. Include the buyer’s May 21 email as a separate exhibit and ask Shopify Support only to confirm that every exhibit was forwarded before the evidence deadline; support cannot decide the outcome. Avoid refunding while the dispute is active unless the processor specifically instructs you, because that can create a second loss. Disclosure: I work on CaseSignal, a free Shopify app that helps merchants identify missing evidence and prepare merchant-approved dispute packages. It does not submit automatically or guarantee a win.