Oh that’s great to hear. Many thanks for the response - it was a long shot that you would, but glad you did! If I could ask a further follow-up: when you get a “chargeback”, there is a fee and an additional cost (e.g. $50 + $10). Is that money immediately withheld from your current payments, or does everything function as normal until it is resolved one way or another? Thanks again 
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You’re welcome, happy to help
I believe everything functions as normal and no money is taken while the chargeback is under review, but I haven’t investigated that in detail.
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Unfortunately we have seen an increased amount of disputes being sided with the customer. Just today a customer said to have returned the items, the bank sided with them.
Worst part, the customer only returned part of their order, but the bank refunded the full order + chargeback.
Shopify is obliged to provide us with arbitration process, but their support does not know how to help with this. Basicly if you use Shopify Payments with Klarna, any customer can order and say they have returned the items without any checks and receive a full refund.
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We’re having the same problem and using the following solution:
Switch off Klarna through Shopify Payments and install the standalone gateway. This way we also have access to the Klarna merchant portal.
When we contacted Shopify support the support agent somehow didn’t have a clue about this and just gave me the standard chargeback documentation. I even asked the support agent if there was another way the chargeback could have been initiated (if not by the customer) and was told… nope, the only way is if the customer contacts the bank. The second chargeback and the second time the customer seemed clueless about the chargeback led me to investigate further and find this thread.
It’s extremely disappointing that Shopify have completely ignored this huge issue costing it’s customers who knows how much money. You have to ask the question, who is profiting from this? Does Shopify keep the $15/£10 fee for chargebacks, or is this to cover a cost to them? Either way, it’s eating into Shopify store owner profits and the end user/customer is completely oblivious to what’s going on behind the scenes. When the customer doesn’t receive the refund in a timely manner, this also affects the stores customer LTV by an unquantifiable amount.
Hey,
So yes I agree this problem is frustrating, and Shopify need to sort it out so that chargebacks don’t get triggered when Klarna customers report that they are returning something.
However what we have noticed on our store is that when these chargebacks are triggered by Klarna, no chargeback fee is charged because the chargeback always gets decided in our favour (even when we submit no evidence)
Here’s what happens for us now that we have learnt about this issue:
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Customer pays by Klarna, decides to return, for some reason when they report to Klarna that they are returning an item, a chargeback gets raised (even though there is no dispute or problem, it is simply a return)
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We ignore the chargeback and do not submit any evidence
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Customer returns the item and we refund as per our normal returns process
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Eventually chargeback gets decided in our favour and no chargeback fee is charged to us
So my advice is, simply ignore them. It is a bit annoying and alarming seeing chargebacks come in, but as soon as we spot it’s on an order paid by Klarna, we just ignore them and it is no extra work or hassle for us and they get decided in our favour (as there is no issue and the order has already been refunded)
Hope that helps.
As you describe it, works in most cases,
But what if the customer reports the return, but then doesnt return within the timeframe?
Because last week we lost a klarna inquiry, we did not submit any evidence and somehow it got escalated to a chargeback, even 1 day before the ‘submit evidence due date’.
That customer did have a return tracking number, but that package never arrived back at us and was stuck in Germany for a couple of weeks.
So after the chargeback we payed an additional 15 euro fee.. and no way to settle it anymore.
Have you also tried not submitting any evidence to the inquiry when the customer never actually returned the product? and see how the inquiry ends then?
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I have not experienced that situation, sorry I can’t help.
This drives me f-ing crazy. We used Klarna with Mollie and it works perfect. However, because of the additional fee on external PSP’s we moved to Klarna / Shopify. What a headache. Every time you get bullbleep claims. We disabled it. Too bad.