Lately, we seem to be losing every chargeback and it seems very unfair. These are real customers and they don’t seem to be setting out to commit fraud, they just seem lazy or people who become agitated easily. Yesterday I lost a case where a customer ordered the wrong size item, they contacted us and explained the issue. We said no problem and sent them a return mail label. They were not happy with that reply so they opened a chargeback. We explained to the bank that we shipped what the customer ordered and did all we could to make them happy. The bank sided with the customer and refunded their money and we do not have the product and lost the shipping fee and other fees as well. This is one example of similar weekly occurrences.
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Hey Bont! I understand how challenging it can be to constantly lose chargeback cases. I’m sharing a few tips that may help you increase your chances of winning future disputes:
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Stick to the rules: Make sure you are familiar with the rules and guidelines set by Visa, and Mastercard, and follow them closely. This can put you in a stronger position during a dispute.
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Use compelling evidence: In a chargeback dispute, providing clear and compelling evidence can greatly increase your chances of winning. This can include transaction details, shipping information, customer communication, and any other relevant documents or information. Make sure the evidence you present is clear, concise, and directly relates to the dispute at hand. The more concrete and irrefutable your evidence is, the stronger your case will be.
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Offer great customer service: Make sure your customer service policy addresses returns and exchanges promptly and effectively. Happy customers are less likely to initiate chargebacks.
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Consider a chargeback management solution: Implementing a chargeback management solution can help you automate the dispute process and increase your win rate.
At the end of the day, the credit card issuer gets to decide on who “wins” the chargeback, and if not presented with appropriate amount of compelling evidence that’s formatted according to the card scheme rules, they tend to side with the customer.
I hope these tips will help you reduce future chargeback losses. Happy to answer any future questions.
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Hi, thanks for the reply. Yes, I believe that I am doing all of these things. As another example, last week a customer wasn’t happy with the product. They shipped it back and we refunded them but they also opened a chargeback. We showed the bank that we had issued the refund and the customer still won the chargeback. It just seems like the banks are not reading the compelling evidence and are siding with their customer because it keeps their customer happy and means nothing to the bank if they decide in the seller’s favor or not.
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It’s really all crap - you are screwed and Shopify will not lift a finger to help. Shopify has decided to outsource their chargeback process to a 3rd party. So if you call Shopify support to discuss why you lost a chargeback, they can’t help at all. It’s one of the WORST things about Shopify. As a million dollar account to them, we lose all the chargebacks that come across our way. We have like 300 5-star reviews, great customer service, all the best of everything we can do for every customer, fantastic communications, etc. We have high-dollar products and when we get a chargeback, it’s painful. For example, we have an $800 chargeback open right now with a customer that we refunded $650 to already. The chargeback amount in question is for the full $800. Shopify has already released the $800 to the credit card holder when only $150 is in dispute. Why did they allow the full $800 to be taken from my account when it’s PERFECTLY CLEAR in the customer transaction log that we already refunded $650 which THEY processed?!?!? If we lose the chargeback, we’re going to lose the full $800 + the $650 we already refunded + the $15 fee! And, of course, Robify will do nothing but shrug and say too bad, so sad. It seriously pisses me off when you do all the right things and these criminal customers game the system and take your money and the sellers platform you use SUCKS at dealing with chargebacks.
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Hello
Had a chargeback about a year ago. (Lady wanted to exchange 2 gowns for another size, someone made a mistake in the company and sent the new ones without waiting for the returns AND SHE ASKED FOR A CHARGEBACK WITH 4 GOWNS IN HAND !!) We were in our right to not pay back, but even then, were charged. Shopify did not help in any way.
Now, funny thing is that same lady tried to reorder with us. And got her to talk of the different sizing with the gowns she bought from us saying the Petite was almost the same as the Small for her and she liked her 4 gowns. So, I ask why she asked a chargeback ? She did stop wring. BUT NOW, we called the credit card company who told us they were not getting the chargeback info from Shopify. IS THIS WHY CHARGEBACKS ARE AUTOMATICALLY ACCEPTED ??
I am furious if the credit card company says the truth but why would they lie. So, I contacted the lady and told her I would report her to the credit card company and she wants to pay back part of it.
I wasted so much time with Shopify on this to find out that the system is not even connected to send info to credit card companies ?
It makes sense, because our answer was that she simplya wanted to exchange, this was a Friday and I even answered that day to ship back to us and we would return once we get the gowns, but 2 days later, there was a chargeback. But why ask for money of you still have the gowns in hand. We offer refunds and she did not ask for a refund but an exchange for another sizing.
Thanks Shopify !!
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I agree completely with Bont and all the others here. We are 5-star merchants, with impeccable customer service, follow-up, and communication with our customers.. then criminal customers fully take advantage of this broken system and we are the ones left paying the price. Only thing I’ve found helpful to do is to block those customers when it has occurred using IP blocks and fraud filters, so that it makes it at least difficult for the same criminal to strike twice.
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I submitted a letter from the customer indicating the charge was legitimate, and I still lost the chargeback. Are the credit card companies not even looking at the response? Do the credit card companies automatically side with the customer?
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I’ve had the same issue twice. The customer agreed the charge was legitimate and that they received their order, but the card processor seems to ignore any evidence you provide.
Actually, we called the credit card company after going through a nonsense chargeback and they told us that Shopify does not give them the message we put in the shop for the customer and the bank. So, no wonder we get charged, it is like we never answered.
I contacted Shopify about this but they go in circles with their answers and do not want to hera this. But one thing helped. We called the credit card company with the date of the transaction, name, and last 4 digits and told them they played a game on us and they were going to have a bad ‘‘note’’ on this customer for the next time they try
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Actually, we called the credit card company after going through a nonsense chargeback and they told us that Shopify does not give them the message we put in the shop for the customer and the bank. So, no wonder we get charged, it is like we never answered.
I contacted Shopify about this but they go in circles with their answers and do not want to hear this. They answer politely (like we read above) but no connection with the problem, like they answer anything to get rid of us. Polite, but meaningless… But one thing helped. We called the credit card company with the date of the transaction, name, and last 4 digits and told them they played a game on us and they were going to have a bad ‘‘note’’ on this customer for the next time they try.
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After a few attempts I’ve been able to get the bank to review it (again) as they initiated the chargeback, not the customer. Shopify keeps telling me they’re “transactional” and don’t get any information etc, but it’s them making the deductions from our accounts.
It is the customer who ask for a chargeback, not the credit card company. Twice it happened to us, and both customers admitted to it. It is time consuming to make a chargeback as they must call the credit card company, be on hold, explain why, etc, etc. And it has to sound serious for them to accept. But a crooked customer will say things like’’ I never received my item, etc’’ But the thing is that these people cannot make too many chargebacks otherwise thye look suspicious so when you call the credit card company to report their lie, it messes up their game.
The one company the office called told us they did not get the answers (to defend ourselves, the proofs) we provide on shopify’s chargeback conversation, so, of course we will not get refunded.
We changed our ways since then, we check every adress and names and new customers (below 4 orders) are not allowed to order more than one garment if we feel they are suspicious.
Shopify is a nice platform and pleasant customer service but they could not help in the past on this subject and as they grew, even less.
This now all make sense. While we are busting our asses, dealing with multiple situations. Shopify is not doing their job. Although the evidence is clear as day, if they don’t pass that information to the banks, then we are just circling around and being caused to waste our time and effort. I guess that’s what they want from us: To give up!
They solicit us for Shopify Plus a few times. It’s not for me, and it never will be if they don’t fix this issue and guard our interests.
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We have had two chargebacks recently, one was initiated by the bank as suspicious, even though the customer had previously ordered from us. The other was the customer not recognizing the transaction and reporting it. In both cases, our chargeback submissions were rejected. I have to wonder where it’s going wrong: with Shopify, or with the banks keeping the money from merchants because they can. I agree that Shopify are getting harder to deal with. Sometimes it seems I have more experience with the back end than the person dealing with a support issue.
Well, they might be fake orders. There was a video few months ago made by Shopify who mentionned about people who had ordered before. This is one of their trick, so you feel safe
There is an app Fraus Filter that helps checking of the adress matches the billing adress. I need to set it up for the name but it checks the adress and the CVV . So, you check the Fraus analysis and even is all good, check every line if all matches. Then google these people, name and adresses. Also, google the location. I had people shipping to post office which UPS does not accept or adresses that were filming location where many companies are and the package could end up showing as delivered and you never can prove otherwise. We had a customer who ordered once then now wants to place large orders but always with an adress that does not match the billing adress with the credit card. She claims she moved to Columbia and wants the stuff shipped to a friend. Recently, she tried with an adress matching but another delivery adress (shipping location and this is a big NO for us). So, we cancelled the order because again, the package could show as delivered but it disapears in that location. She said the lady owning that place was her best friend, she trusted her. I said, if she is your bext friend, then, ask her to buy for you and you refund her then..She never did.
But when a bank cancels a transaction, not the customer it is because someone stole somebody’s credit card and the person who own the card saw the transaction and called it. It happens of course. We take 2-3 weeks also before we sip because it gives time to the person that has been robbed to notice and call the bank. But of you have not shipped, then, no loss for you.
Every buyer has to be checked, and every transaction. I check their past delivery adresses to see if the same. I just had one who bought 5 times and this time was in a long term stay hotel. I called and I could not speak to her for a month and would not ship until I reached her to find out their house had been destroyed by a tornado and it was a fact. So, it takes time, but it gets faster over time and anyone you do not feel safe (like they ship elsewhere than the billing, or the ip is 3000 miles away from he city they live in) , cancel the order.
I had an order cancelled for ordering 300 miles away from my place (I was visiting a friend who liked my hat and wanted to order one while visiting. It did not work even if I called and had ordered before. They refused because of the IP and also getting it shipped elsewhere)
Have you looked into using a tool like IPQS to help flag the high risk orders so you can avoid them? Pretty sure they have a shopify plugin as well.
What is the connection with the chargeback ?? Have you read our messages or simply trying to push an app
A bit insulting to have someone pop up and suggest an app when it has nothing to do with the problem`The porblem is NOT about finding who id honest, who buys here and there , NO’ it is about the fact that if you did everything right, shows up a customer that decides to ask for a chargeback and even if you are right, the answer you provide to defend yourself does not reach the credit card company
Unless your app enters the backstores from shopify and can pick up these answers and pass them on to Visa, Amex, etc, then your app is of no interest in the conversation.
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This feels like we should all come together and file a class action lawsuit. I lost a charge back for $3200. I spoke to customer before he bought numerous times, sent him an email with our return policy which states once opened and used cant be returned, it’s health product and there is sanitary issues so no returns. He got buyers remorse because he wanted bigger size and told him I can’t accept but I would sell the larger at my cost and he could sell other one on marketplace or something. Wasnt good enough open charge back and never returned product, I had all the evidence tracking number, email to him, he was so happy his son bought one etc. So now he bascially is getting it for free. I might take him to small claims court. I just wonder now if Shopify even sent info to his bank.
That is awful. The thing you should do is contact the credit card company yourself and give them the date of purchase, name and last digits of the card. If anything, thye get the other version and put a bad note to that customer. We had a customer who dicede to refund us when we told her we were about to do this. But we had called Amex and they told us that they never received our reply from Shopify (the proof we had submitted to defend ourselves). I cannot know if this is true but our chargebacks were so ridiculous, it was impossible for a credit card company to accept the chargeback.
We got more difficult, we cancel orders if we have red flags, and if they have large orders, cut the quantities & we ship to billing adresses only.
We had a customer in Canada who, every year, would order three items and claim she got only two so we ship a third one. Every year, the same story and the dumb employee at the office would simply ship without telling us until I looked into this and decided to ship only one item and cancel the other two items from the order; she never ordered again after this.
So, do not take large orders, ship to billing adresses, check who they are, linkedin, whites pages, etc, etc. Had a lady claiming she was Moon Shine (her name) ?
And do take them to court, call the credit card company to report them and tell them what is coming up. This chargeback story is a joke
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I did check all their info, he’s an accountant. I think he’s just an old grumpy man.