Shopify Stealing Transaction Fees On Refunds Costing Small Business's Millions A Year

Shopify Discussion
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Like many small business owners, refunds and returns are part of the landscape of selling online. Since March of 2020 Shopify has been stealing the 2.9% + .30 transaction fee on ALL refunded orders.

Is this illegal?

Let’s break this down a little…

Using some of our numbers, for example…

Our average customer order value is $1,837.00 per.

Which is $53.58 in transaction fees on average per order.

We average 400 orders a year.

5% of those orders are refunds per year. (5% of 400 is 20)

$53.58 in fees multiplied by 20 refunds = $1,071.60 a year lost to refunds. (stolen by Shopify 2.9% + .30 transaction fee)

Multiply that $1,071.60 loss total by 10,000 websites with similar numbers…

$10,716,000.00 A YEAR STOLEN FROM 10,000 SMALL BUSINESS’S.

Shopify just made $10.7M in profit on products and services that were never moved, shipped, completed or payed for.

(Currently, 427,676+ websites use Shopify)

2 Likes
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Hello, there’s actually a way around this. If you set up payment capture to manual, you will not get charged a fee until you capture payment. You have 10 days to capture payment, but this will allow you to cancel unfulfilled or fraudulent orders without losing out on the fees, as long as you haven’t captured payment yet. I usually only capture payment as I start to process the order.

Hope this helps.

Vandal’s Games