We have lost 5 chargebacks totaling about $3k which is very unfair. We supplied goods and customer must have used fraudulent credit card. We called customer the first time to ensure the order was legitimate. Now we are out of pocket and have lost the goods as well. Can we escalate this further with Shopify? The chargebacks always seem to go in the customers favor? Would love any help
HI @BOX-IE
Jason here with Beacon fraud protection.
I’m sorry to hear that you’ve lost 3K due to fraud and the payment was reversed. To answer your question whether or not you can appeal the decision once a decision has been made and finalized, you can’t since the chargeback was labeled under “unauthorized transaction”.
How this works is when the original CC account holder finds out that there is an unknown charge, they will report this to their CC issuer. The CC issuer will then investigate this with their banking partners. Once a “unauthorized transaction” has been found, the banks has to return the funds back to the original account holder.
Winning a “unauthorized transaction” chargeback is very difficult unless you can prove that the original CC holder is falsifying their claim. This is why when you submit your evidence to Shopify, you should prove that you did everything to deliver your product in a very clear and concise manner.
To better protect yourself in the future, you should arm yourself with some fraud detection knowledge so that you can quickly identify repeat pattern and stop and refund orders before a chargeback can be opened.