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?
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.
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.
Please follow our Community Guidelines
Related Posts
Can't find what you're looking for?