Customer dropped chargeback, but chargeback still pending in Shopify
Long and short of it is a customer submitted a chargeback with their bank for a lost package before contacting us to report the lost package. I disputed the chargeback, because the tracking information said the customer had changed their delivery date and time. 3 weeks later the shipping company now confirms the package is lost. The customer agreed to drop the chargeback so I could refund her money and not be out the chargeback fee. However, Shopify won’t let me process a refund because the chargeback is still showing as open.
I’m assuming this is because I disputed the chargeback, but the customer sent me screenshots of emails confirming with their bank that they had rescinded the chargeback. So how on earth am I supposed to refund her money and avoid having to pay a chargeback fee?
It sounds like you’re in a tricky situation. It’s possible that the chargeback is showing as open because the process of rescinding it hasn’t been fully completed. It’s common for banks to take several business days to update their records and for that information to be then passed on to the merchant’s payment processor.
In this case, it could be helpful to reach out to your payment processor and see if they have any information about the status of the chargeback. They may be able to tell you if it has been rescinded and if there is any additional action that needs to be taken. Additionally, you may also ask for confirmation via email for the rescinded chargeback from your customer’s bank.
In parallel, It could be also helpful to communicate with your customer and explain the situation, let them know that you are working on resolving the issue, and refund their money as soon as possible. Keeping good communication with the customer regarding this issue will help the customer understand that you are taking the situation seriously and make sure that they are satisfied with the end result.
If you are able to confirm with your payment processor that the chargeback has been rescinded and receive a confirmation email of the same, then it should be possible for you to process a refund for the customer. Make sure to keep all the necessary documents and records of the communication between you, your customer, and their bank as proof of resolution.
If your customer has rescinded the chargeback, you will just need to provide an official document from the customer’s bank that confirms the cancellation. Our Shopify Payments team will then review the document and remove the chargeback from your account. This will allow you to refund the order.
We have this process in place to prevent merchants from being taken advantage of by customers. Some bad actors claim the chargeback is canceled, hoping to get a refund, when in fact it is still open. This results in the merchant losing twice the amount of money.
In order to provide us with this documentation you will need to reach out to our live advisors. Please visit our Help Center and log in to your account to create a support request through live chat, email, or callback. Once you have logged in to your account, type your request in ‘Ask about a topic’, scroll down to ‘Get Support’, and then click ‘Continue.’
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