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Shopify not reimbursing credit card transaction fees

shopify transaction fees

         

elfreddy

4:34 pm on Jul 8, 2021 (gmt 0)



Hi. I found out today that shopify does not refund the credit card transaction fees when you have to cancel an order(since april 2021).

Is that the norm? Do you know of any other similar site that still refunds them?

Thank you

headingame

12:47 pm on Jul 9, 2021 (gmt 0)



Yup. According to their manual [help.shopify.com], they do not refund cancelled transaction fees. I don't think any other platform does so as well.

not2easy

1:27 pm on Jul 9, 2021 (gmt 0)

WebmasterWorld Administrator 10+ Year Member Top Contributors Of The Month



Hi elfreddy and headingame and welcome to WebmasterWorld [webmasterworld.com] both of you.

Transaction fees are paid regardless of whether an order is fulfilled or cancelled or returned because it is a cost related to processing the transaction. A transaction continues to exist even when an order is cancelled and refunded. It is a process and has a cost. Whatever becomes of the order, those fees are spent and should be calculated as part of your overhead for online transactions.

LifeinAsia

6:29 pm on Jul 9, 2021 (gmt 0)

WebmasterWorld Administrator 10+ Year Member Top Contributors Of The Month



In the past, I seem to remember that PayPal would refund the fees for transactions that didn't involve a credit card (i.e., transfers between PayPal accounts when funded by an existing balance). And (I think), at least in the beginning, the CC processor I used to use would also refund the transaction fees when doing refunds. But those are definitely the exceptions and most likely they don't do it any longer.

For Shopify or other platforms that add another layer on top of the processing process, it's unlikely that they're refund the transaction fees. It's probably only a matter of time before they start tacking on transaction fees to the refund side as well.