Quote Shay: You also have the ability to refund a customer less processing fees at any time. When processing a refund you can change the refund amount to reflect that before processing.
Ummm, So we have a fraudulent transaction, which we cancel… (Sometimes within seconds of them coming in).. And you expect us to deduct refund fees from this transaction, to a person whom is using a fake credit card normally.. So an innocent person, gets not the full amount back, of which they will then dispute with their bank. meaning more work and more loss for us… Sorry you answer is massively flawed! and almost hypocritical!!
@ByeShop-ify Because they are scamming you! Charging the fees to the client will no doubt end in chargeback or dispute on the customer’s behalf, which will cost you more money in the long run.. This is in no way an industry standard. Credit card processing companies make millions, billions, even trillions a year in fees. Refunding canceled orders is a cost of doing business for them. Not something passed on to Small Business Owners that pay fees for every sale already! Shopify has its own payment gateway…and its corrupt af.
I was also charged a fee by Shopify on an order a customer cancelled, amounting to $18.
I believe we have a right to pass on this fee to the customer, right? So when they ask for a refund, we refund the amount they paid, minus the fee Shopify will charge.
Just imagine Amazon keeping a fee if you cancel an order or Walmart keeping a fee if you return something. Never gonna happen… Besides never having the customer return to your Shopify site, if we tried to screw our customers for Shopify’s theft, we would get hit with so many chargebacks the account would probably get closed.
We’re a Canadian small business, I just found out Shopify stopped to refund transaction fee on a cancelled order around Jun.2021, no any notice at all. It is not true, if customer paid with PayPal and they cancelled the order, PayPal will refund the transaction fee for sure
So this sounds like you have confirmed that Shopify indeed does not refund transaction fees for transactions that were canceled and refunded to customers. I had this issue as well and this must be addressed. Even a bank often refunds transactions fees if the order gets returned or canceled. Why would Shopify retain 100% of the transaction fee from a payout that got reversed / chargedback, when the request to cancel an order came from the customer?
I got my first order and guess what…Fraud. So, I cancelled the order of course. Two days later I find out that I’m getting charged $6 for the cancellation. What a crock of sh!t. I have another site on BigCommerce with Stripe set up as payment processor. I’ve never seen them charge for cancelling transcations.
Because it isnt Stripe. Shopify Payments makes their own rules and acts as
their own processor. They might say they partnered with Stripe, but I think
Stripe just provided the processing tech. Your charges aren’t actually ran
through Stripe. Shopify Payments is it’s own entity and setting these fees
and charges as they see fit and/or for profit.
Just to let folks know. Sadly this is normal practice. You are technically being credited back the credit card transaction fees when you cancel an order, but you are being charged them again on the refund transaction as an interchange fee from the banking system. This is essentially a policy laid down by the banking institutions which the credit card companies utilize and unless the merchant gateway processing the transactions has some kind of special contract agreement with Visa/Mastercard/etc, those fees are charged right from the source. As much as I hate Shopify and their horrific mismanagement of many things and their absolutely laughable support, I will attest that it’s not actually them pocketing the fees in this instance. If you do a little more research on Google, you will find several articles relating to this (which are not Shopify sourced), which do lay out this practice in detail.
It is a completely rotten practice to keep fees on a transaction that essentially didn’t happen, which is shielded by a paper thin excuse of “paying for the infrastructure” which is BS. It’s just another banking system cash grab, just like charging $15 for charge backs. The only solution is to band together and bug the hell out of our government reps to revise these systems. Banks like to claim that they are “partners in our business” but as soon as it comes down to it, they run away with the bag at the first sign of loss. The banks should be required to actually act as partners and shoulder the same setbacks.