Fraud Protect and chargebacks
With Fraud Protect activated, the chargeback process varies depending on whether the order is protected or not, and the reason for the chargeback. Since a majority of orders are protected, you'll have to worry about chargebacks less often.
The types of chargebacks you might encounter are fraudulent chargebacks on protected orders, fraudulent chargebacks on unprotected orders, and other types of chargebacks on protected or unprotected orders.
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Fraudulent chargebacks on protected orders
Fraudulent chargebacks are the most common type of chargeback, and occur when the cardholder claims that they didn’t authorize the charge (for example, because their card was stolen).
If a fraudulent chargeback is made on a protected order, then Shopify reimburses the full disputed amount and the chargeback fee to you, and handles the chargeback process on your behalf. You don't need to do anything.
Fraudulent chargebacks on unprotected orders
If a fraudulent chargeback is made on an order that isn't protected, then the chargeback process is the same as the typical process. The disputed amount and the chargeback fee aren't reimbursed to you unless the credit card company resolves the dispute in your favor.
For more information on responding to chargebacks on unprotected orders, refer to Managing chargebacks and inquiries.
Other types of chargebacks on protected or unprotected orders
While fraudulent chargebacks are the most common type of chargeback, customers can also dispute a payment on their credit card if they claim they didn’t receive the product, or if they believe the product was defective, damaged, or not as described. Fraud Protect doesn't protect against these types of chargebacks.
For more information on responding to chargebacks that aren't covered by Fraud Protect, refer to Managing chargebacks and inquiries.