Shopify chargebacks refer to the bank’s decision to reverse a credit card payment, taking the money out of your account and transferring it back to the cardholder’s account. Customers can use this method to dispute a charge on their credit card bill.
Keep in mind that any business accepting credit cards might face the risk of Shopify chargeback which can affect your bottom line.
Thus, we’ve created this guide on how to avoid chargeback on Shopify with useful tips and tools that enhance the customer experience, combat fraud, and support you in winning disputes.
Any company that accepts credit cards runs the risk of getting a chargeback, and Shopify sellers are no exception.
Shopify Chargeback can be started for a number of reasons, including:
Fraud also occurs when a person claims they are a victim of identity theft.
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You can take precautions to prevent chargebacks, but the risk cannot be entirely eliminated.
But how can you prevent chargebacks from happening in the first place?
To avoid chargebacks and time-consuming questions, follow the following tips:
As you can see, enhancing customer satisfaction can significantly reduce the risk of chargebacks.
No matter how diligently you adhere to the tips above, you will ultimately experience at least a few chargebacks on Shopify. What then should you do when they do occur?
At this time, making sure you have a solid collection of data proving the disputed transactions were valid is the best way to go about it.
Additionally, Shopify Payments’ Automatic Dispute Resolution will also help you win more disputes more frequently by compiling a detailed picture of any transaction.
Shopify Chargeback Protection, a beta solution created to combat fraud and offer chargeback protection, is only available to certain Shop Pay sellers.
The Shopify Protect algorithm leverages information gathered from all around the Shopify network to spot and stop fraudulent transactions.
You now may wonder that “can I get my money back from Shopify?”
The short answer is Yes.
If a customer files a chargeback for fraud or because they didn’t recognize the order, and the order qualifies for Shopify Protect coverage, you will be compensated for the full cost of the order plus the chargeback fee.
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Whether you succeed or fail in fighting a Shopify chargeback, doing so might show you where your process needs work.
But managing Shopify chargebacks may be expensive and time-consuming. A failure to prevent chargebacks or combat fraudulent claims might deprive your company of the funding it needs to develop and expand.
A solution like Synctrack PayPal can give you information to fight fraud or support you in avoiding chargebacks from dissatisfied customers.
You can now focus your attention on managing your business, which is what you do best.