How to deal with chargeback complaints on Shopify?

Asked 4 years ago

What is the best way to handle chargeback complaints on Shopify?
For example, the average order value on my store is about $50, so when I had an order for almost $400, Shopify flagged the order as suspicious and potentially fraudulent chargeback activity. I then emailed the customer to request confirmation of the order and the customer responded stating that they had purposefully placed the order, so I then shipped the order to the customer. 
Shortly after shipping the order, I received a chargeback claim from the bank, stating that the order was a fraudulent transaction. I submitted the emails to the bank as proof of order confirmation by the customer, however, the bank has sided with the customer, leaving me at a loss of $400, loss of products and an extra $20 charge from Shopify. 
How should this situation be dealt with? What is the best way to prevent this? 

Chargeback Fraud Complaints Order confirmation

Abeeha Qasmi

Monday, July 05, 2021

Chargeback complaints are a potential risk to your profit ratios. To prevent such fraudulent cases in future, make sure you never fulfil a suspicious order without proper investigation. Try using different tools such as fraud protection app, IP address verification app and shipping destination verification app for this purpose.

Katie Heenan

Wednesday, July 07, 2021

In the future, you can download third-party fraud prevention apps on the Shopify store. If your store is on the Shopify plan or higher, fraud analysis gives you a fraud recommendation on all online credit card orders to see what level of chargeback risk the order has (low, medium or high).

David Hay

Thursday, July 08, 2021

I would advise you to download a trusted third-party fraud prevention app on the shopify store.  This will give you the software to check all credit and debit card transactions for level of chargeback risk the customer has.  You could also download a IP address verification tool to help with suspicious orders.

David Hay

Thursday, July 08, 2021

Firstly, you need to install a trusted third party fraud prevention app from Shopify itself. Complaints of any kind are going to have a negative impact on your business and a possible negative impact on your gross profit.  Try using verification software for shipping and IP addresses for extra protection against fraud. 

Avik Das

Saturday, October 23, 2021

Such chargeback complaints could have negative effect on your business, so it is important to resolve the issue as soon as possible. The best step would be to take the help of a well-trusted and reputed third party fraud prevention app. Some best fraud prevention apps are FraudLabs Pro Fraud Prevention, Extra Verification, Conekta Antifraud, and  Signifyd.