What is a chargeback on Shopify?

whitefish

When a customer initiates a chargeback with their credit card issuer, it means that they are disputing a charge on their credit card statement. The credit card issuer will then investigate the charge and determine whether or not to refund the customer. If the credit card issuer decides in the customer's favor, the charge will be reversed and the customer will be refunded. If the credit card issuer decides against the customer, the charge will remain on the customer's credit card statement.

melanie_bryant

A chargeback is when a customer asks their credit card issuer to refund a transaction that they have made. Chargebacks can happen for a variety of reasons, but they are usually initiated because the customer is not happy with the product they received, the product was not as described, or the customer did not receive their product at all.

If a chargeback is filed, Shopify will refund the customer the full amount of the purchase, and then charge the merchant the transaction fee, plus a chargeback fee. The merchant will also have to provide Shopify with proof that the product was delivered to the customer, or that the customer received the product and was happy with it. If the merchant cannot provide this proof, the chargeback will be processed and the funds will be taken from the merchant's account.

Chargebacks can be a costly and time-consuming process for merchants, so it's important to try to avoid them whenever possible. One way to do this is to make sure that your product descriptions are clear and accurate, and that you set realistic expectations for delivery times. You should also keep good records of all your transactions, so that you can easily provide proof to Shopify if a chargeback is filed.

Gene801

In short, a chargeback is when a cardholder disputes a charge with their card issuer. The card issuer then contacts the acquirer (which in this case is Shopify Payments) to reverse the transaction. This means that the funds from the transaction are withdrawn from your bank account and given back to the cardholder.

There are a few reasons why a cardholder might file a chargeback. Some examples are if they didn’t receive their order, if the order was significantly different than advertised, if they’re questioning a recurring payment, or if they believe that a transaction was made fraudulently.

If you receive a chargeback, you’ll be notified by email and given the option to respond to it. You can do this by providing information that supports your case, such as order details, shipping information, or customer correspondence. The more information you can provide, the better your chances are of winning the chargeback.

If you win the chargeback, the funds will be returned to your shop. If you lose, the funds will be taken from your bank account, and you’ll also be charged a $15 fee.