How can I combat internet shoplifting on my e-commerce site?

Shopify Discussion

Topic summary

Main issue: A merchant reports escalating chargeback fraud (“item not received”) despite providing tracking numbers and delivery confirmations showing successful delivery.

  • Process concerns: Banks allegedly side with cardholders even when merchant evidence is marked “compelling.” The merchant cannot communicate directly with banks and says Shopify offers only template responses and no advocacy.
  • Definition: Chargeback = a bank-initiated reversal of a card payment after a customer dispute; “item not received” is a common dispute reason.

Impact: The merchant claims these losses occur almost daily, making operations unsustainable and equating the behavior to shoplifting without enforcement.

Requests/questions: Seeks practical ways to stop or reduce such fraud; asks why Shopify isn’t defending merchants or scrutinizing bank decisions.

Latest update: No response from Shopify in the thread; the merchant expresses continued frustration (“Crickets”).

Outcome/status: No solutions, actions, or commitments emerged. The issue remains open and unresolved with unanswered questions about dispute handling and merchant recourse.

Summarized with AI on January 3. AI used: gpt-5.
1

My store is having major issues with what I call internet shoplifting, that being people placing orders with legitimate credit cards, receiving the orders, then submitting a chargeback saying they didn’t receive item. Invariably we get a response that the “bank” (credit card company) has sided with the customer. This is despite the fact that we provided indisputable evidence, such as tracking numbers and delivery confirmations, that we shipped the item and it was delivered to the given address. Contacting Shopify is useless, they just throw their hands up and say tough luck. They will not let us defend ourselves and communicate with these banks. This is unacceptable, we can no longer do business here in these conditions. Word has gotten out and people are taking advantage of using this process almost daily now. It’s ironic that the justification we receive after the process is over is:

“What follows is compelling evidence, and a valid remedy for this chargeback.”

Then you follow the “Evidence” and it shows compelling evidence that the chargeback should have been declined! It seems that these banks are not even looking at the evidence and automatically side with the lying customer. It’s infuriating that if you are lucky enough to talk to anyone they could care less and just pass on useless irrelevant documents. Has anyone found any ways to solve this issue?

2

Why is Shopify not defending their customers or letting us defend ourselves? This is obvious fraud, isn’t Shopify concerned? Aren’t they at least curious how a bank could come to these conclusions despite the evidence? If I walk into a store and steal an expensive suit the police will stop me and arrest me. No one seems to be stopping this form of shoplifting.

3

Well, this the response I expected from Shopify. Crickets. Let the money grab resume.