Shopify Chargeback Reports to Identify Transaction Disputes

Shopify merchants know the fun of scaling a store and the stress of handling chargebacks. One moment, you're celebrating a sale. And then you realise your funds are frozen because of a customer dispute. Whether you’re new to Shopify or already running a high-volume store, understanding your Shopify chargeback report is crucial. Let’s break it down in simple language and see how you can turn chargeback data into a better report.

What is Shopify Chargeback?

A chargeback happens when a customer disputes a credit card transaction and asks their bank for a refund. Unlike a return, the bank initiates this process, and the funds are automatically fetched from your merchant account.

Shopify automatically flags chargebacks, and the platform has built-in chargeback protection features to help you navigate the situation. But here’s the thing- those funds are held until the issue is resolved. If the bank sides with the customer, you lose both the money and potentially the product.

Reasons for Chargeback

Understanding why chargebacks happen is your first step to reducing them. Here are the most common reasons:-
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• Fraud: Unauthorized purchases made using stolen credit card information.
• Quality Issues: The product didn’t meet customer expectations or was damaged.
• Clerical Errors: Duplicate charges or incorrect amounts billed.
• Technical Glitches: Failed transactions that still processed payments.

These are not just data points, they’re clues. They tell you what needs fixing in your store, whether improving product quality, tightening order fulfillment, or refining your payment gateway.

Breaking Down Shopify Chargeback Data for Further Analysis

Shopify provides basic chargeback details, dedicated apps provide deeper insights that allow you to track dispute statuses, analyze chargeback reasons by product, compare chargeback trends against order volume, and monitor your chargeback rate to avoid being flagged as high-risk. They also help manage fees and organize evidence to improve win rates.

A good chargeback report provides more than numbers; it provides data. It reveals what’s working, what’s not, and what needs immediate attention.

Does Shopify Protect Against Chargebacks?

Shopify doesn’t cover chargebacks by default, but if you use Shop Pay, some U.S. merchants can enable Shopify Protect - a feature that covers certain fraud-related chargebacks.

If an eligible order gets a chargeback for fraud or unrecognized transactions, Shopify will refund you the full amount and the chargeback fee, and they’ll handle the dispute for you.

To qualify, your order must:

• Be a physical item that needs shipping

• Be paid via Shop Pay

• Be shipped within 7 days and in transit within 10 days

• Include a valid tracking number from supported carriers like USPS, UPS, FedEx, or Shopify’s network

• Be sold by a U.S. store using Shopify Payments

With Shopify Protect active, you can rely easily when dealing with fraudulent orders.

Shopify Chargeback Reports by Report Pundit

Once you've gathered and organized your Shopify chargeback data, the real value comes from how you analyze and act on it. Understanding trends over time helps you spot patterns and address issues before they become costly.

Here's how analyzing chargeback data can make a real difference:

Spot product-specific problems: If you notice that a specific product keeps showing up in chargebacks, that’s a red flag. It might be due to quality issues, unclear descriptions, or even shipping problems. With the report, you can filter chargebacks by product to see which items are often involved.

Understand payment-related risks: Sometimes, certain payment methods are more prone to fraud. With chargeback reports, you can break down disputes by payment type to see if there’s a pattern. For example, if fraud is mostly happening with credit card payments from specific regions, you can adjust your fraud settings accordingly.

Compare chargebacks to order volume: Is your chargeback count increasing because your sales are going up, or is it growing faster than your business? Reports let you track chargebacks alongside your total order volume, helping you see whether you're keeping things under control or if it's becoming a bigger issue.

Track status and outcomes: Reports can show chargebacks by status, like pending, won, lost, so you know where things stand. You can also see win/loss rates to measure how effective your evidence submissions are. If your win rate is low, it may be time to revisit how you respond to disputes.

Filter by reason codes: Whether it's “Item Not Received,” “Fraudulent Transaction,” or “Product Not as Described,” you can filter chargebacks by reason. This lets you address the root cause. For example, if “Item Not Received” is the top reason, you may need to improve fulfillment and shipping communication.

Use past evidence to improve future wins: Review past chargeback evidence files to see which ones succeeded and why. This will help you refine your approach and submit stronger responses moving forward.

A Case Study By Shopify Seller

You can’t completely avoid chargebacks, but you can reduce the chances of getting them by taking a few smart steps.

Start by making sure your store follows the rules from card companies and payment platforms like Shopify Payments. Also, check if your products and descriptions match what the customer expects. Clear photos, honest reviews, and accurate info go a long way.

To avoid “item not received” or “wrong item” claims, ship orders quickly with reliable carriers that offer tracking. Make sure your billing name is clear so customers recognize your charge on their statement. And most importantly, offering good customer service, helpful policies, and quick support can prevent issues from turning into chargebacks.

Beyond customer experience, stop chargebacks before they happen:

• Order Validation (like Order Insight): Helps customers see exactly what they bought.‍
• Prevention Alerts: Pause disputes and give you time to refund the order instead of facing a chargeback.

Third-party apps can be a good option if chargebacks are affecting your business. A pre-created Chargebacks report is also available instantly after installing the app, with no extra setup needed.

Conclusion

Chargebacks can be a headache, but they don’t have to be a mystery. With a clear understanding of your Shopify chargeback report, you can take control of disputes, protect your revenue, and improve customer experience.

Chargeback data is your secret weapon, whether you're trying to track trends, measure performance, or win more cases. Use it wisely.

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FAQs‍

Q: What are Shopify chargebacks?

A: These are disputes initiated by customers that result in payment reversals, often involving fees and evidence submission.

Q: What is the Shopify chargeback rate?

A: It’s the percentage of chargebacks compared to your total number of orders. A high rate can affect your store’s credibility with payment providers.

Q: Can I see an example of a Shopify chargeback report?

A: Yes! Report Pundit lets you create sample reports filtering by chargeback status, product, and outcome.

Q: What is the most common chargeback type?

A: Fraud-related disputes are the most common, often due to unauthorized card use.

Q: Where can I find the chargeback report in Shopify?

A: Go to Orders in your Shopify admin, then click Search and filter > Add filter. Choose Chargeback and inquiry status, and then select Open. This will show all orders with active chargebacks or inquiries that haven’t been sent to the credit card company yet

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