A few weeks ago we received 5 orders from the same customer within 30 minutes.
The first 2 orders were considered normal by Shopify but the next 3 was high risk of fraud.
We didn’t ship anything.
We couldn’t contact the customer because the email and phone number provided were incorrect.
We were not sure if refunding all 5 orders was the right thing to do as it’s giving the money back to the thief and he can continue to make fraudulent purchases.
So we decided to wait.
Yesterday there was 5 chargebacks for the 5 orders. Fair enough.
But we are also charged 15$ fee for each orders!! So 75$ total.
Is there anyway to dispute the 15$ fees?
I don’t want to dispute the actual chargebacks but only the 15$ fees X 5.
Well, apart from the blinding obvious, by not refunding the orders knowing they could be fraud, you kept the funds which were not your to keep either. They will not refund you the fees and risk dept will see you have 5 chargebacks in one day, not good either way.
Always refund if you suspect something iffy, esp if you never shipped and don’t have signed delivery.
There is a chargeback fee of $15, which is stated in our terms of service agreement which is charged by the bank. If the issuer finds in favor you, the merchant, the transaction amount is returned and Shopify refunds the chargeback fee.
Please let me know if you have any further questions!
In cases where you’re faced with chargeback fees after receiving multiple high-risk orders from the same customer, disputing just the fees is challenging but possible. Here’s what you can do:
Document everything: Keep records of the orders, risk alerts from Shopify, attempts to contact the customer, and your decision process.
Contact your payment processor: Explain that the orders were flagged as high risk, you didn’t fulfill them, and your contact attempts were unsuccessful.
Use Chargeflow: Chargeflow specializes in managing and disputing chargebacks for Shopify merchants. They might offer assistance or advice for handling the fees.
For more information on how Chargeflow can help you manage such situations and possibly dispute the fees, visit https://apps.shopify.com/chargeflow.
Just jumping into Shopify Community looking for specific advice.
We received an order with a flag that stated HIGH RISK OF FRAUD DETECTED.
A chargeback was created by the customer which shows up in our Shopify admin as the total amount + the chargeback fee.
At the same time we cancelled the order when it was being batch processed and before it was fulfilled - Shopify admin gave CANCEL as an option.
Can you advise on what the process is now as its showing both as a refund + chargeback, or point me to specific info in relation to what happens from here. Also in this case does Shopify refund us the chargeback fee? I have had a look in the Shopify Help Center but see nothing.
When there’s a high-risk order, we’d generally recommend cancelling and refunding the order as soon as possible so that you don’t receive a chargeback. Once a chargeback has been filed, you wouldn’t want to refund the order as the decision will be made by the bank regarding the chargeback dispute. The chargeback fee will only be returned to you if you win the chargeback dispute. If you’d like to learn more about handling chargebacks, then we’ve got a guide on that here: Chargebacks and inquiries.
If you have any other questions on this topic, then don’t hesitate to let us know.