I’ve just been disqualified from Shop channel because of 1 charge back in over 10 years of selling with Shopify. I’ll not go into the details of why this chargeback should never have been upheld by the bank in the first place but, now, aside from the financial hit, I’m also booted from the Shop sales channel based on their policy of a merchant needing to have less than 1% chargeback rate over a 6 month period. Not only do chargebacks hurt small businesses most to begin with but then Shopify slams us again by applying the same rate across the board for high volume and low volume sellers without any appeal process enabled to make exceptions. Yes, I have reached out to support and was told the rule is a system wide policy and not something that can be assessed on a case by case basis. This is a total blow and truly disappointing. Especially since it will likely mean I’ll be disqualified through Christmas. It is a policy that hobbles small businesses and should be reassessed by Shopify as it unfairly penalizes low volume sellers for whom a single chargeback can mean disqualification.
Topic summary
A merchant was disqualified from Shopify’s Shop sales channel due to a single chargeback over 10 years of operation.
Shopify’s policy requires merchants to maintain a chargeback rate below 1% over a 6-month period, with no exceptions or case-by-case appeals available.
The merchant argues this policy disproportionately harms low-volume sellers, where one chargeback can trigger disqualification regardless of their long-term track record.
Support confirmed the rule is system-wide and cannot be overridden, leaving the merchant likely disqualified through the Christmas season.
The merchant is calling for Shopify to revise this policy to account for business size and transaction volume rather than applying a uniform percentage threshold.