How to Manage Chargebacks in Shopify

chargebacks shopify

Chargebacks shopify are a frustrating part of running an online store, and it’s important to know how to manage them. The problem is that customers and fraudsters often file chargebacks without a valid reason, which means you lose money and get hit with additional fees.

Protected Chargebacks

There are certain chargeback categories that Shopify offers protection for through the Fraud Protect feature. This is an important tool to implement because it enables you to classify disputed charges as protected or not, which helps you avoid chargebacks that you’d otherwise have to pay to resolve.

Shopify Fraud Protection: Essential Tips and Tricks for E-Commerce Business Owners

If you sell expensive products, you’ll need to watch out for chargebacks from customers who are looking to dispute their payments. It’s important to review every payment before you fulfill it, so you can catch a customer who may be trying to abuse the system.

Product Not Delivered

Getting a product to a customer on time and in good condition is a crucial part of your business. If your shipping and delivery policy doesn’t take unplanned delays into account, you could end up losing a lot of sales and chargebacks.

Product Not as Described

Another common Shopify chargeback category is when customers claim their product was not exactly what they ordered. Having a thorough description of each product is critical.

Notify Me of Chargebacks

Shopify automatically sends evidence to the credit card company on the due date for every chargeback. This evidence consists of basic transactional information and can include receipts, shipping, and package tracking. If you’d like to add more evidence, you can do so through the Shopify Admin section of your Shopify dashboard.