Shopify Pay
Has anyone else had a fraudulent charge back from Shopify Pay and told it is in the hands of the customers credit card company?
We have had a charge back that is fraudulent. We have proven it is fraudulent and are told it is in the hands of the customers CC- Mastercard. We have contacted fraud at Mastercard who says it is in total control of Shopify Pay to credit us back for product we sold in good faith.
Hi @TurkishT
Thank you for sharing that information here and I can understand, based on what Mastercard may have shared with you, that you have some questions.
Shopify Payments is a payment gateway powered by a range of banking institutes (depending on your country) that many of our merchants use to power their checkout. The payment gateway itself does not provide insurance or recovery in the case of chargebacks. Generally, a chargeback situation is between the merchant and customer’s bank. If you are using a third party service for chargeback insurance, then that might be a slightly different situation.
If the transaction was processed using Shopify Payments as the gateway, Shopify is not involved in the chargeback process at all. We do not have the ability to credit merchants regarding chargebacks and trust in the banking institutes that investigate these situations to make a fair and equitable decision.
During the process of a chargeback you have the ability to submit all your evidence for the order and fulfillment of the order to the customers bank, and they will investigate from there. The banks decision on this is generally final, and cannot be reinvestigated.
You can learn more about managing and handling chargebacks in our Help Center here: Chargebacks and inquiries · Shopify Help Center.
This is a huge issue that Shopify needs to fix ASAP. As you may have noticed, customers that pay using shop pay are almost always shown as “low risk”, even if there’s major risk factors that come from stolen credit cards.
Unfortunately, Shopify won’t want to credit you for this transaction because they refuse to take responsibility for chargebacks/fraud that occurs due to their incomplete payments system. Your best bet is fighting and ideally winning the chargeback. I would recommend pointing out all the “non risk factors” with the transaction, like if the customer’s billing address matches the one on file for the card. Whatever you do, don’t acknowledge anything that’s wrong/risky with the transaction, and don’t expect to get your money back just because you sold the product in “good faith”
I would recommend using an AI-powered fraud scanning app in order to prevent this from happening again and I would also recommend using a chargeback responder app that can use a response that’s proven to recover revenue and win the majority of cases. It’s pretty hard to come up with these responses on your own and expect them to convert, so your best bet is going with a company like Disputifier that guarantees a 10X ROI because their win rate is so good.
Sorry about your chargeback, they do happen if you’re running at any type of volume, but with some planning (and good software), you should be able to prevent the vast majority from happening in the future, and hopefully win the ones that you do get!