How can I appeal an unfair chargeback as a merchant?

Shopify Discussion

Topic summary

Merchants are expressing frustration over losing chargebacks they believe are fraudulent, with no ability to appeal decisions through Shopify.

Common complaints include:

  • Customers filing chargebacks without contacting merchants first, despite warranty/return policies being available
  • Banks siding with customers even when merchants provide extensive evidence (tracking, delivery photos, signatures, customer communications)
  • One merchant lost a chargeback despite the customer admitting the charge was legitimate and offering to pay again
  • Losses ranging from small amounts to €1,500

Key issues identified:

  • Shopify does not provide an appeal process, though Visa and Mastercard do allow appeals
  • Funds are immediately withdrawn when chargebacks are filed, before merchants can respond
  • Merchants report winning only ~20% of disputes despite evidence of “friendly fraud”
  • Some merchants suspect their rebuttal evidence isn’t being properly submitted to banks

Shopify’s position:

  • Chargeback decisions are made by customer banks, not Shopify
  • Merchants can submit evidence through order details during a set timeframe
  • For reversals, customers must provide official bank statements
  • Shopify recommends legal support for disputes or third-party fraud prevention apps

Merchants feel unprotected and are considering alternative payment processors like Authorize.net, which historically offered appeal options.

Summarized with AI on October 29. AI used: claude-sonnet-4-5-20250929.
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Shopify needs to offer some sort of appeal process for merchants to have a second review opportunity to further investigate false chargeback claims and/or losses. I’ve provided shipping labels, photos of where exactly a package was left by the carrier at the residence, delivery signatures, packaging slips, proof of tracking, detailed timed package movement, customer communications confirming delivery, and still lost chargebacks. Customers can dispute a charge and the funds are taken immediately before the merchant can prove otherwise, then takes a month or more for decision to be made. Customers usually dispute right after a tracking # is given to them. They know the package is on the way and can’t be re-routed so they file a false claim with a chance of getting their merchandise for FREE.

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