Multiple merchants report being charged transaction fees on canceled orders, which they believe is unfair and potentially fraudulent.
Key Issue:
When orders are canceled (including those flagged as fraudulent), merchants are charged fees for both the original transaction and the refund
One merchant was charged a $53 transaction fee on a canceled order
Merchant Concerns:
They expected no fees for canceled/unfulfilled orders, similar to offline retail practices
Shopify support states this is company policy and “industry standard”
Merchants find it especially problematic when orders are fraudulent, out of stock, or customer-initiated cancellations
Current Status:
The issue remains unresolved
Support team has not reimbursed the fees despite complaints
Merchants express frustration with Shopify’s help center response
Some are considering switching to alternative platforms
Workaround Suggested:
One merchant recommends having customers pay directly to bank accounts for high-value items to avoid Shopify transaction fees entirely.
Summarized with AI on October 29.
AI used: claude-sonnet-4-5-20250929.
I recently received an order with some amount like $100, but unfortunately, the system flagged it as a potential fraud. As a result, I had to cancel the order.
When I got this order, the amount of $97 was added to my account. And then for the canceled order, $100 refund was deducted from the account. This means I had to pay the transaction fee for the order and I have to pay another transaction fee for refund?
After this, I reviewed all other canceled orders and found out I always have paid the double transaction fee for the canceled order.
I thought I am NOT supposed to pay any transaction fee for the canceled order.
Can anyone explain why these transactions show like this? Please help me with this issue!
I have the same issue about this one. I talked to seller support team and yet did not reimburse the fees. It seems scam to me. Since it we should not be getting fees on something that it was canceled.
Imagine receiving an order, only to be notified that the order is fraudulent. Upon canceling the order, I still get charged transaction fees. Just think, anyone can do this to you, and they might even have connections with Shopify, as they profit from canceled orders.
I used to run an offline store and never had to worry about fees for canceled orders. I assumed it would be the same for online transactions. However, Shopify Help Service informed me that there is a fee for each transaction, including canceled orders. This seems like a big scam to me!
SHOPIFY make up their own rules. I had to cancel a transaction last week and they charged a $53 transaction fee. When I challenge this through their help center (which is no help) they say it is in their policy and in line with industry standards. This is absolute fraudulent activity. Never have I been charged a transaction fee on a cancelled or unfulfilled order. I don’t care what the Shopify support people say, its morally and ethically appalling that a fee is charged for a cancelled order. What if the order was fraudulent to start with, what if the supplier doesn’t have the product in stock, what if the buyer changes their mind… no other word for it, its a scam and fraudulent behaviour!
Sorry to hear of your issues … SHOPIFY make up their own rules. I had to cancel a transaction last week and they charged a $53 transaction fee. When I challenge this through their help center (which is no help) they say it is in their policy and in line with industry standards. This is absolute fraudulent activity. Never have I been charged a transaction fee on a cancelled or unfulfilled order. I don’t care what the Shopify support people say, its morally and ethically appalling that a fee is charged for a cancelled order. What if the order was fraudulent to start with, what if the supplier doesn’t have the product in stock, what if the buyer changes their mind… no other word for it, its a scam and fraudulent behaviour!
Best thing is to get customers to contact your business directly so you don’t put the sale through Shopify. Good for larger priced items. Get the customer to send the money straight to your bank account. It does take more time but can save you a lot of money.
