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What Is a Chargeback on Shopify?

Last updated on October 1, 2022 @ 7:12 pm

When a customer initiates a chargeback with their card issuer, the card issuer contacts Shopify to request a refund on the customer’s behalf. This is called a chargeback.

If you receive a chargeback, you’ll be notified by email and asked to provide evidence that the transaction was legitimate. This evidence can include proof of delivery, invoices, or communication with the customer.

PRO TIP: A chargeback is a request for a refund from a credit card issuer. Chargebacks can be initiated by the cardholder or the merchant, and can be for any amount. If a chargeback is issued, the funds for the transaction will be returned to the cardholder’s account, and the merchant will be charged a fee.

If you’re unable to provide evidence that the transaction was legitimate, the chargeback will be processed and the customer will receive a refund. You’ll also be charged a fee by Shopify.

If you believe a chargeback is fraudulent, you can dispute it. To do this, you’ll need to provide evidence that the transaction was legitimate.

Drew Clemente

Drew Clemente

Devops & Sysadmin engineer. I basically build infrastructure online.