We received what we thought was a highly fraudulent order. The billing address didn’t match the card holder’s address so we never fulfilled the order. We called the mobile number of the customer but the number doesn’t work. We also emailed them to ask them to contact us - we never heard back. Shortly after, a chargeback was issued. We’re not sure if this was done by the actual cardholder (if the card was stolen). So, the question is, do we issue a refund now, or should we wait for the result of the chargeback? We have already submitted our evidence for it but do not wish to be liable for any charges.
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Hi, @MichelleGrace !
Ash here from the Shopify team. Welcome to the Shopify Community!
Chargebacks are not an ideal situation, and I appreciate you wanting to make sure this is managed properly. You’ve asked a great question, and I’m happy to provide some insights on how to proceed. When a chargeback is issued, it’s best to not refund the actual order until the chargeback is resolved. This is because if you were to refund the order, and the cardholders bank still sides with them in their investigation, the cardholder will end up getting their money back from the chargeback, and from the refund.
Refunding an order in full can prevent chargebacks, but if the chargeback has already been started, then it is best to follow through the process of submitting evidence, and allowing the bank to complete their review. If you’re able to contact the customer, and they agree to drop the chargeback- be sure to obtain evidence from their bank that the chargeback has indeed been cancelled before deciding how to proceed.
I suggest reading over our help documents on chargebacks and inquiries, as this will help you fully understand the chargeback process, and determine how to proceed in different situations. We also have a great document here I suggest checking out, which covers strategies to prevent chargebacks on your store.
Let me know if you have any further questions by replying to this post. I’ll be happy to offer any additional information, and provide clarification on any points if needed.
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Thanks so much for your help Ash, we will wait for a resolution.
I also need help on this:
I got an order that presumably look fraudulent. I did not fulfill the order and Shopify never credited me instead held the funds due to the fraudulent nature of transaction.
I contacted the buyer to send more information (details) and never got a response.
I received an email of a charge back with fees of $15. What should I do.
Do i accept the charge back or just ignore the email as I never got any payment from shopify… kindly help out?
As s customer of a shopify store. A charge back is because sm order is not in stock, or cancelled and shopify fast charges the customer and they are mad.
They should have contacted you right away. You should do a refund if valufld right away. But shopify takes their time, they claim they sent a refund for you but in reality 8 to 20 days later clients are out of tje money and will never use you ate any shopify store again.
After 8 days a bank will do a charge back if a refund was promised unless the refund shows up in their system which in reality is 24 hours within refund transmission. If they know its and issue they clear it that am.
Make sure your stores are up to date. A customer out of money for items not even in stock like myself for over 1738.00, wont return while money is held hostage for something not available.
Very poor company and ecommerce.
Hello,
We are also having an issue with Chargebacks. A customer overreacted due to a shipping issue and put a chargeback on us, once we talked to the customer and his bank, their bank dropped the chargeback. The customer still wants his money refunded though, but we are completely unable to refund him. Shopify still thinks that there is a pending chargeback and has the money tied meanwhile the customer is still waiting for his refund because he has been told by his bank that the chargeback has been dropped.