Interesting, so are you suggesting to not have auto capture on? And just
manually capture every order?
Yes, thatās what Iām doing now.
@shopify As a new store, we have received only 2 orders which are not personally contacted to the store owners in some way, both of these order have been fraudulent orders! With $199 order values Shopify is able to flag these as āHigh risk of fraud detectedā but still takes the order and a $7.07 processing fee in the process. There is no way for us to set Shopify to not accept payment for orders it flags as āHigh risk of fraud detectedā and yet the strong advice issued by Shopify support online is to cancel and refund the order to prevent losses from future chargebacks. However, in doing so, we must refund the order in full amount to the card used at checkout via Shopify Pay (value $199 including the payment processing fee of $7.07) and Shopify profits in the process because it does not refund the payment processing fees. Whats to say Shopify doesnāt hire people in the Philippines to place fraudulent orders for their own profit?
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I spoke with another Shopify tech and found out that if an order is
authorized but not captured, and it gets ācancelledā, there are no Shopify
fees charged to the seller because weāre simply cancelling an authorization.
I did this recently with an order and after cancelling it, I also āvoidedā
the transaction.
If the order has already been ācapturedā, thatās when the fees get charged,
even if you refund.
Since I was given contrary information at an earlier date, I asked the tech
to double check it and he did (with upper management.)
So thereās a way to avoid the problem you have: set your shop to NOT
automatically ācaptureā orders. Manually ācaptureā them.
So you know that now Shopify is charging a 1% or 2% per transaction because you are using a different merchant service?
I will cancel my 3 accounts with Shopify if this policy continue. This is not acceptable!
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I call them twice already.
I spoke with a guru yesterday and itās correct. 
I asked him to create a message and send it up to the managers on how unfair this is to us, what happen to their ethics!
Iām thinking the same, who will you go to? I have poured tons of money into each of my Shopify websites, now isnāt the time to change as the funds are not available.
I think we need to make sure the media knows that shopify is actively hurting small businesses by continuing to not refund credit card fees given the COVID-19 situationā¦especially for small businesses or nonprofits under a certain gross amount.
If anyone is interested, I could draft a press release. Email me to tell me your story and I can start gathering info: megan.deleeuw@macd.org. We are a local government entity but function as a small nonprofit since our funding comes from an annual tree sale. I think we could get some press from a list of small businesses and nonprofits hurting from Shopifyās decision and refusal to help.
Alternatively, what a great marketing plug for them if they were to refund and retract their March 1st change and delay it until 2021 to help small business!
I think it is more of a Stripe issue and even more so, a credit card charge
issue. Shopify uses Stripe and Stripe just started not refunding Stripe
fee on refunds. Here is the explanation from Stripeā¦
Stripe info on their site about refunds
There are no fees to refund a payment, but Stripeās fees on the original
payment will not be returned in case of a refund.
A large portion of the underlying cost of payment processing is driven by
fees assessed by banks and payment networks (like Visa and Mastercard).
These networks set rules about which fees apply for refunded payments, and
in many cases banks and card networks keep the entire upfront cost of a
refunded transaction. For some regions and payment types, refunded payments
also incur additional fees.
We aim to make our pricing simple and transparent, and our standard fees
include access to a variety of features like fraud protection, reporting,
and other tools for managing your payments. To address these underlying
payment processing costs and continue providing these services as part of
our standard pricing, Stripe does not return our fees when a payment is
refunded.
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This clarification is good and necessary however, I would still put the responsibility on Shopify.
As a customer using Shopify, I see under payment providers a list of credit cards or payment options I can select to allow my customers to use or not. I do not see Stripe or any breakdown of details beyond the range that each payment provider uses. More transparency is definitely needed.
For the short term though, Shopify is the business that I am directly interacting with as a customer and I have no contact with Stripe so doesnāt make sense for me to directly target them.
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Thatās correct! I had an order for $520, due to the pandemic, the shipment date was too late for the costumer. I cancel the order within 24hours and still was charge $19.80,
I am just finding out about this change this week, and I am severely disappointed. We use Shopify to process e-com orders which are infrequent but individually significant. We already pay a ton for Shopify Plus yet now weāll incur thousands in extra fees per year for refunds.
Whatās really disgusting is the way they framed this as ātheir mistakeā and that they should have been doing this all along ā that is complete garbage. I have been emailing with Support over the course of two days. They provide the same canned repose and point me to the Indemnification and Chargeback sections of their TOS, which happens to have a generic sentence at the end about not refunding fees, however, the preceding paragraphs (and topic as a whole) are all related Claims resulting from Chargebacks and disputes, not refunds issued through the normal course of business.
I plan to file a claim with the FTC, thatās probably the best thing any of us can do. I think the fact that this isnāt actually stated in the terms, yet they are representing that it is, is false and misleading.
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I would not mind the federal government getting involved to make this
practice illegal. I just had someone, on another platform but with PayPal,
make a $3,000 purchase on eBay and then return it claiming it was purchased
by a family member with dementia. So i will lose $50 in shipping costs,
$100 in PayPal fees, plus probably get back an opened product.
However the end result of making this practice illegal will be higher
processing fees. Thatās what this is really all about, everyone wants to
advertise the lowest rate
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As far as I can see there are two different fees here - the credit card or
payment gateway fees, and Shopify fees. The issue being discussed is the
Shopify fees so Stripeās policies are not relevant.
Credit Card Fees are normal. Doing business is not a game. When refunds happen a company has to eat the fees. Shopify gives you a completely risk free merchant account, they have the overhead. Give them a break, eat the fees and act like a normal business.. Your goal is to make the customer happy or just fold up and go sell something that is not refundable
āGive them a break, eat the fees and act like a normal business.ā
Oh OK, soā¦ Company worth 3 billion dollars = āGive them a breakā. Companies owned by many people who barely make enough to live = āWhen refunds happen a company has to eat the fees.ā
Got it. Any other brilliance you want to bestow on us today?
"just fold up and go sell something that is not refundable "
That single sentence alone has to be one of the dumbest things Iāve ever seen said on here, and proves you have absolutely no idea what youāre talking about.
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No matter what, Companies like shopify take advantage of the little people..
We eat the fees and the big company gets breaks.. so yes, eat the fees or
fold up or offer no refunds, thatās the only way .. That $3 Billion company
(Shopify) is just laugh at us and they will not change their policy because
guess what, every 1 shop owner that leaves shopify, they get 3 new in so
they donāt give a bleep..
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One minute you say make the customer happy, then you say donāt offer refunds, which is one of the best ways to chase away customers in the first place. Youāre clueless. Just stop talking.
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