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Monitoring your store's chargebacks

If you use Shopify Payments, then you can monitor your store's chargeback rate in the Shopify admin. Your chargeback rate helps you understand how often customers dispute payments on your store.

A high chargeback rate can affect your Shopify Payments account health. Monitoring your chargeback rate can help you identify dispute patterns, respond to chargebacks, and take steps to reduce future chargebacks.

Chargeback monitoring helps you track your overall chargeback rate for orders that are processed through Shopify Payments. Your chargeback rate is based on all disputes that customers open with their banks, not just for disputes that you lose. Winning a chargeback doesn't remove it from your chargeback rate.

Card networks and payment processors use chargeback activity to evaluate account health, regardless of the dispute outcome. Learn more about understanding your chargeback rate.

If your chargeback rate becomes high, then you might receive a notification about your Shopify Payments account health. The notification can include account-specific details and a link to review chargeback monitoring in your Shopify admin.

After you receive a notification, review your recent chargebacks for any patterns in the dispute reasons. For example, repeated disputes about products not being received, fraudulent transactions, or canceled subscriptions can indicate where to focus your chargeback prevention efforts.

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Account actions related to chargeback monitoring

A high chargeback rate can lead to account actions that help reduce risk from future disputes. Depending on your account activity, these actions can include a reserve on Shopify Payments payouts, or enrollment in a network dispute resolution program.

If a reserve is applied to your account, then the reserve terms are communicated to you by email. Learn more about reserves in Shopify Payments.

If you're enrolled in a network dispute resolution program, then eligible disputes are resolved automatically. You can track your dispute rate and program status in the Shopify admin.

Account actions related to chargeback monitoring, such as reserves or enrollment in a network dispute resolution program, are released when your account meets both of the following criteria:

  • Your chargeback rate over the last 90 days falls below 1.00%.
  • Your 90-day chargeback rate stays below 1.00% for 30 days, and you have at least 1 eligible successful transaction during that period.

Viewing your chargeback rate

You can view chargeback monitoring from your Shopify Payments settings. You can also open the chargeback rate report for more details about your chargeback activity.

View chargeback monitoring in Payments settings

You can review your current chargeback monitoring status from your Shopify Payments settings.

Steps:

Desktop

  1. From your Shopify admin, go to Settings > Payments.

  2. If the Shopify Payments accounts page is displayed, then click the account that you want to review.

  3. Review Chargeback monitoring.

  4. Optional: Click Chargeback monitoring to open more information about your chargeback rate.

Mobile

  1. From the Shopify app, tap Menu, and then tap Settings Settings.

  2. In the Store settings section, tap Payments.

  3. If the Shopify Payments accounts page is displayed, then tap the account that you want to review.

  4. Review Chargeback monitoring.

  5. Optional: Tap Chargeback monitoring to open more information about your chargeback rate.

View the chargeback rate report

You can use the chargeback rate report to review more details about your chargeback activity.

Steps:

  1. From your Shopify admin, go to Analytics > Reports.

  2. In the Search reports field, search for Chargeback rate.

  3. Click Chargeback rate.

Reviewing your chargeback sources

After you view your chargeback rate, review your recent chargebacks to understand why customers are disputing payments. Grouping your chargebacks by reason can help you decide which prevention steps to prioritize.

Review whether your chargebacks share any of the following patterns:

  • Customers don't recognize your business name on their card statement.
  • Orders are marked as fraudulent or high risk before fulfillment.
  • Customers report that products weren't received.
  • Customers report that products were damaged or not as described.
  • Customers dispute subscription charges or cancelation timing.

Learn more about reasons for a chargeback or inquiry and responding by dispute type.

Reducing your chargeback rate

To reduce your chargeback rate, focus on the dispute patterns that appear most often in your recent chargebacks. You can take the following actions to reduce your chargeback rate:

  • Review suspicious or high-risk orders before fulfillment.
  • Use tracking and delivery confirmation when possible.
  • Keep customers updated about shipping delays or fulfillment issues.
  • Make your refund, return, subscription, and cancelation policies clear.
  • Use billing statement text that customers can recognize.
  • Respond quickly when customers contact you about an order issue.
  • Submit strong evidence for open chargebacks before the evidence deadline.

Learn more about preventing chargebacks and inquiries, fraud prevention, and providing strong chargeback evidence.