Chargeback Failure = Shopify Failure!!

Shopify Discussion

Topic summary

Merchants report repeated losses in payment chargebacks despite providing delivery proof and buyer communications. A chargeback is a cardholder-initiated reversal of a transaction; when merchants lose, the customer is refunded, the merchant may lose the product, and a fee (reported as $15) is charged.

Case 1: Product shipped with UPS delivery confirmation. Buyer later emailed they found the package, but did not close the chargeback. Merchant submitted UPS proof and the buyer’s email; the chargeback was still lost. Shopify refunded the buyer, the merchant lost the item, and a $15 fee applied. Shopify support stated they could not help. Merchants urge Shopify to take control of chargeback handling rather than outsourcing.

Case 2: Merchant provided order details and a USPS delivery screenshot against an “unauthorized order” claim, but lost. Another ongoing case: buyer unreachable, chargeback opened the next day; order never shipped; refund attempt failed due to canceled card; order canceled; merchant expects a $15 fee. Merchant reports not winning a chargeback since 2020, including an in-store purchase.

Status: Unresolved, with calls for stronger merchant protections and clearer intervention by Shopify.

Summarized with AI on February 7. AI used: gpt-5.
1

I sure hope someone in authority reads this because this is an on-going problem and our last incident with chargebacks was the worst.

We shipped the product and got a delivery confirmation from UPS. Customer said they never received it and opened a chargeback. The customer wrote us an email a week later saying they found it under some leaves. We asked them to close the chargeback twice, they never replied.

We send in our chargeback argument and attach UPS confirmation AND the email the customer sent us saying they received it.

We lost the chargeback. Shopify refunds their money, they keep our product, and we get charged $15.00 for losing the chargeback.

We contact Shopify to tell them our story and they say there is nothing they can do end of phone call.

Seriously?!?! We have overwhelming evidence and we still lose and Shopify says “So sad, too bad, can’t help ya, bye.”

Let’s get this fixed Shopify! There is nothing that pisses a customer off more than being 100% totally right and getting the door slammed in your face by a company that refuses to fix a known problem. The forums are filled with people talking about how Shopify sucks at handling chargebacks. Stop outsourcing your chargeback process! Take control of this situation and fix it!!

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I also have been getting chargebacks, provide all of the supporting information that the customer did place the order, the order shipped within 24 hours and provided the USPS delivered screenshot. Customer tells their credit card company they didn’t authorize the order yet the information was all there in Shopify that was submitted. I lost the chargeback and Shopify is not able to help in anyway to protect us the merchant from people scamming. I have another chargeback that I called to verify, no answer, left message to contact us, no reply and the next day a chargeback was opened. The order never shipped, tried to refund the money but the card was cancelled and I cancelled the order. I can guarantee you that I will still be charged the $15.00 after sending in all of the information so that I will not be charged $15.00.

This system is broken when it comes to protecting the merchants, so you are not alone. I have yet to win a chargeback since 2020 and was was a person that physically came into our pro shop to make the purchase and tells the credit card company he didn’t make the purchase.

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