Refunded and Chargeback Issue (~$5000) – "Chargeback Hold Release"?

Payments + Shipping & Fulfilment
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Topic summary

A merchant refunded an order (~$5000) on April 25, then the customer opened a chargeback the same day—suspected friendly fraud. The chargeback closed quickly with a loss, despite the portal showing a May 4 deadline with no evidence submitted yet.

Main concern: Whether there will be duplicate deductions from their account, since both a refund and lost chargeback occurred.

Payout confusion: Screenshots show the original order charge, chargeback hold, and a “Chargeback hold release” adjustment. The merchant is unsure if additional deductions are pending.

Resolution provided: The “Chargeback hold release” prevents double-charging since the refund was issued before the chargeback opened. The only actual loss is the $173.14 chargeback fee.

Recommendation: Enable manual payment capture in Shopify payment settings to avoid future chargeback fees in similar situations.

Summarized with AI on October 29. AI used: claude-sonnet-4-5-20250929.
1

I have an instance where I canceled and refunded an order. Later that day (April 25), customer opened a chargeback too (likely friendly fraud tactics).

Also that same day, the chargeback closed and we found out we lost, despite the Shopify portal saying we had longer until May 4 2025 and no evidence submitted yet.

Now I’m confused when viewing our Payouts—I’m unsure whether there will be a double/duplicate payment from our account to the customer. Very concerned!

Although the payouts seem to even things out, we “lost” the chargeback, so will it end up deducting still? It’s only April 27, meaning I’m not sure if there will be more adjustments made in Payouts. Does anyone have experience with next steps, or if this has come to a resolution yet, based on the Payouts so far?

Orignial order:

Screenshot 2025-04-27 at 1.14.25 PM copy.png
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Chargeback opened (we refunded earlier this day before the chargeback opened but doesn’t show in payouts yet):

Screenshot 2025-04-27 at 1.14.47 PM.png
Screenshot 2025-04-27 at 1.14.47 PM.png1946×356 24.6 KB

Not sure if these are the final adjustments, or because we “lost” the chargeback if it’ll charge again!?:

Screenshot 2025-04-27 at 1.14.56 PM.png
Screenshot 2025-04-27 at 1.14.56 PM.png1932×412 36.2 KB

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HI @fresh00

The “Chargeback hold release” is simply because you have already refunded the customer before the chargeback was opened, so that you are not dinged twice on the charges and do not have a negative balance on this order!

Correction: you the only thing you lost is the $173.14 Fee. It’s recommended you use manual payment capture within the Shopify payment settings in the future to avoid this fee.