So I got a hold the other month that’s still pending. After 6 weeks I got a review where they still wanted to have a 10% hold on the revenue. I asked “Hey I only have one chargeback out of 1000+ orders, can’t you just release the hold?”.
I get the answer that “You have a 1.3% chargeback ratio, so no”.
And I’m like “Whaaat?”. I’ve done everything in my POWER to avoid chargebacks since the hold. Pleased customers. Issued refunds. In my eyes, literally only one chargeback went through, which is visible in the dashboard as well.
What is going on here? Did all that effort I put in to avoid chargebacks just… disappear because Shopify counts “all chargeback ATTEMPTS as chargebacks, regardless of how you handled them”??
Feeling tricked here. I lost hundreds of dollars issuing refunds to every customer who prematurely pressed the “I don’t want to pay” button for something they got upset about. I do use Klarna though, so it might be a programming quirk where Klarna reports all attempts at chargebacks as actual chargebacks where they took the customer’s side. That has only happened once for me so far, and that’s a fact.
Just… sigh someone help. Actual help.
HI @Red1981
Jason here with Beacon Fraud protection.
Are you you referring to Klarna or Shopify Pay? These are two different payment gateway and have two different policies regarding how chargeback percent ratio are calculated.
In the case of Klarna, the ratio/percentage is calculated over the last 3 months of the total order count and disputes opened against your business.
This information can be found directly here. https://docs.klarna.com/disputes/merchant-disputes-fee/
For Shopify Pay, they use Stripe as the payment processor. so their dispute calculation can be found here. https://stripe.com/docs/disputes/measuring
Here is a snippet on this information.
"The two calculations are best understood with an example. Let’s say you processed 1,000 payments in a given week. In that same week, you also received 10 disputes.
Only 3 of those disputes were from the 1,000 payments processed that week. The other 7 disputes were from payments that were processed at an earlier date. (Because disputes take a while to come in, this delay is very common.)
The dispute activity for this week would be 1% (10 disputes on 1,000 payments). The dispute rate for this week would be 0.3% (3 disputes on 1,000 payments)."
So in essence, disputes are broken down on the amount of orders and disputes (win or lost) opened up in a period of time, and not by dispute/order ratio. Since you had a total of 6 disputes, this percentage is added into the period of time.
Yeah, I don’t want companies replying to my, or any one elses, posts. You’re not even helping since you’re answering a completely different question.
Bump. I still have NO idea what Shopify’s systems count as a “chargeback”. The worker I’m talking to has a habit of only replying once per day, regardless of if I reply to her within minutes.
Is it “all disputes opened with a payment processor/card company”?
Is it “all actual chargebacks, where a payment processor/card company took the customer’s side and actually made a chargeback”?
I still have no idea.
The plot thickens. Klarna now says “Only actual chargebacks count as chargebacks from our end”.
This means that if they encourage their customers to open disputes for any old random issue they might have, this will possibly count as a “chargeback” in Shopify’s system.
Still waiting for a reply here, Shopify.
