Refund fees on refund

Payments + Shipping & Fulfilment

Topic summary

A merchant experienced a transaction where a customer purchased on March 13, canceled on March 14, and received a refund on March 15—before the merchant’s payout on March 17.

Key Issue:

  • Shopify did not refund the transaction fees despite the refund occurring before payout
  • The merchant questions why they must absorb these fees when the customer canceled

Comparison:

  • Other platforms (eBay, PayPal) reportedly refund fees in similar situations
  • One commenter characterizes this as “bad business practice” and notes it represents an added cost, particularly for larger businesses

Status: The discussion remains open with no resolution or official response provided.

Summarized with AI on October 28. AI used: claude-sonnet-4-5-20250929.
1

Hello,

There was sale made on March 13 and on March 14 customer cancel. Shopify refunded the customer on the 15th. We gotta pay out on the 17th. The refund was done before we got the payout and the fees were not refunded. Shopify does not refund fees after the refund was made? All other platforms like eBay and PayPal refunds fees. I don’t think consumer should pay the fees if the customer canceled the order.

1 Like
2

Yes, this is bad business practice! Say something. For larger businesses, this is an added cost of using Shopify!