We urgently need to address a serious issue. It’s concerning how customers are exploiting the system: they receive the products, initiate a chargeback claiming non-delivery, and promptly receive a refund. This unjustly burdens merchants. This situation is fundamentally unfair and demands immediate attention.
We urge you to take decisive action to rectify this problem. Merchants should not bear the brunt of such deceptive practices. This issue jeopardizes the integrity of the platform and undermines trust between merchants and customers.
We implore you to implement effective measures to safeguard merchants against fraudulent chargebacks. Swift action is imperative to protect the interests of all parties involved.
Your prompt attention to this matter is greatly appreciated.
Sorry to be the messenger here but this has been a serious problem for many years, I don’t believe a request like this will cause any change.
The banks decide who wins chargebacks, not Shopify, so you’d have to convince banks to be fair and employ people to investigate the cases, instead of just auto grant the customer the win.
I ran a store for 7 years and we were able to mitigate it by cancelling high risk orders, but every once in awhile we would get a dishonest customer scamming like you mentioned. There are a lot of dishonest people these days that are happy to steal from a business. The majority are good, to be clear, but those small % that steal really sting.
Unfortunately, this is a normal part of doing business online, every store deals with it. I think the only way this would change is through legislation - laws to penalize people for stealing. Other than that, requiring banks to actually investigate the chargebacks would be amazing. I don’t know how you’d go about starting that movement, maybe start by contacting lawyers.
Knowing that it’s common may help you to at least chalk it up to a business expense, and not expend energy being angry or trying to fight it, instead just keep focusing on creating, growing, and marketing your brand. Stuff like this I used make games out of it, for example every time you get scammed, double down focus on “how can I level up my business so these scams don’t even phase our business at all.”
Sorry for the non-solution, I feel your pain 1st-hand so felt obliged to comment and share what helped me cope with it.
Thank you for your response. Indeed, Shopify acts as the intermediary in this scenario. Given its stature as a prominent marketplace partner for these companies, Shopify could potentially play a pivotal role in communicating with credit card providers such as Visa. They could issue a statement urging heightened attention to chargeback responses. This proactive step could streamline the process and ensure fair resolution for all parties involved.
Additionally, I want to highlight that I consistently cancel high- and medium-risk orders as a precautionary measure. Surprisingly, this chargeback stemmed from a seemingly low-risk order, which underscores the unpredictability of such occurrences.
Given the size and power of the company now that it’s a publicly traded corporation, I would think they could create a team to investigate and lobby for this type of thing. I don’t know, just thinking about what would be really cool and help millions of people (Shopify users + their staff + their families).