Shopify Chargeback: How To Fight And Win

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.

Why does chargeback on Shopify occur?

Any company that accepts credit cards runs the risk of getting a chargeback, and Shopify sellers are no exception.

Shopify chargeback – how to fight and win

Shopify Chargeback can be started for a number of reasons, including:

1. Unreceived item: Customers who expect their orders to arrive at a specific time may request a chargeback during a period of widespread supply chain and shipping delays.
2. Clerical error: Double-billing or a wrong charge.
3. An unrecognized purchase: If the business name on the card statement differs from the store name, the purchase is frequently unrecognized.
4. Customer dissatisfaction: when they get a different item than what they paid for.
5. Fraud occurs when a dishonest customer engages in so-called “friendly fraud,” using their own names, addresses, and credit cards to purchase something online with the intention of disputing the transaction with their credit card provider in order to avoid paying.

Fraud also occurs when a person claims they are a victim of identity theft.

How to Prevent a Shopify Chargeback?

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:

• Start by learning and implementing the rules defined by the card issuers and payment processors (like Shopify Payments).
• Examine your products and services critically to avoid customer dissatisfaction (and resulting chargebacks).
• Prevent chargebacks for the reason of an item not being received or receiving a wrong item by streamlining your fulfillment process.
• Make sure your billing descriptions are clear so that customers can identify the purchase on their statements.
• Put customer service first. Provide policies that explain your refund and return process in clear, user-friendly, and accessible ways. Additionally, be sure to offer supportive customer service that aims to fix problems before they result in Shopify chargeback.

As you can see, enhancing customer satisfaction can significantly reduce the risk of chargebacks.

How to prevent a Shopify chargeback?

How to Win a Shopify Chargeback once it happens?

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.

Does Shopify provide protection from chargebacks?

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.

Shopify chargeback protection – a great way to get your money back!

Final Words

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 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.

Contact us right away for any additional information about Synctrack!