Addressing chargebacks with Shopify Protect

On this page, you can learn how to address chargebacks and protect yourself against fraudulent and unrecognized chargeback reasons in transactions that use Shop Pay. If you receive a chargeback, then the process to respond to the chargeback varies depending on whether the order was protected by Shopify Protect and the reason for the chargeback.

Learn more about preventing chargebacks and inquiries.

Fraudulent or unrecognized chargebacks on protected orders

A chargeback is considered fraudulent when the cardholder claims that they didn't authorize the charge. This is a common reason for chargebacks and can occur if the card was stolen. An unrecognized chargeback happens when a customer doesn't recognize the merchant name or location on their credit card statement.

If a fraudulent or unrecognized chargeback is made on a protected order, you don't need to take any action. Here's what happens in your account:

• The disputed amount and the chargeback fee are debited from your account.
• The disputed amount and the chargeback fee are immediately reimbursed to you as a credit.
• If the cardholder's bank resolves the chargeback in your favor, then the disputed amount and fee are returned to you, and Shopify reverses the credit from Shopify Protect.

You can review the debits and credits by going to your Shopify admin, navigating to the Payouts page, and then clicking Transactions.

Fraudulent or unrecognized chargebacks on unprotected orders

If a fraudulent chargeback is made on an order that isn't protected, then the process to resolve the chargeback is the same as the typical process. In this case, the disputed amount and the chargeback fee aren't reimbursed to you unless the credit card company resolves the dispute in your favor.

Learn more about managing chargebacks and inquiries for chargebacks on unprotected orders.

Other types of chargebacks on protected or unprotected orders

While fraudulent and unrecognized chargebacks are the most common types, customers can dispute a payment on their credit card for various reasons. This can include claims of not receiving the product or believing the product was defective, damaged, or not as described. It's important to note that Shopify Protect doesn't protect against these types of chargebacks.

To learn more about managing chargebacks and inquiries for other types of chargebacks, refer to the managing chargebacks and inquiries documentation.