I lost a chargeback, but can't cancel the order without refunding it again?

Shopify Discussion

Topic summary

A merchant lost a chargeback dispute for $382.05 after a customer’s mother reported the transaction as fraud (the customer had borrowed the card with permission, but the mother forgot). The chargeback amount was already deducted from the merchant’s payout.

Current Problem:

  • The order remains open in the system
  • Attempting to cancel it requires issuing another refund of $382.05
  • This would result in losing nearly $400 twice for the same transaction

Technical Issue:

  • Shopify’s cancellation process doesn’t recognize that funds were already returned via chargeback
  • The merchant cannot remove the order from unfulfilled status without triggering a duplicate refund

The merchant is seeking guidance on how to close/cancel the order without being charged twice for the same loss.

Summarized with AI on November 12. AI used: claude-sonnet-4-5-20250929.
1

Basically, a customer had to borrow their mom’s card for a purchase. The mom forgot she let her borrow the card and when she saw the transaction she had it flagged as fraud with her bank and a chargeback was issued, which I lost. The money from the order, which was $382.05 was deducted from my payout and I assume returned back to the customer’s mom’s bank. Now I have the order still sitting open in my order list, and I want to cancel it to get it out of my unfulfilled list, but when I go to do that it doesn’t let me without refunding $382.05 which was already taken from my payout due to the chargeback. What do I do in this situation? I can’t afford to lose another almost $400 I shouldn’t have to pay because it was already deducted from me.

Also, sorry if I chose the wrong label for this. It wouldn’t let me select other labels like fulfillment. This was the best option it gave me out of the only 5 options it allowed.