Module 24

Payments, fraud and chargebacks

5 lessons, 31 stepsOne instruction at a time, each with the result to expect. Tick steps as you go; Helix remembers.

Outcome: you know what each way of paying really costs you, and you keep payouts flowing during big sales. You stop card-testing bots and risky orders before they ship. You answer chargebacks with the right proof on time.

In plain words

Stage: Grow (keep more of every sale, then scale). Every lesson below is tagged with its stage; see Attract, Convert, Grow.

What it is: What each way to pay costs you. And how to keep your money safe from holds, fraud and disputes.

Why it matters: A payout hold or a wave of chargebacks can leave you unable to pay suppliers. That can happen even in a record month.

Do this:

Work out your real payment fee rate and put it in Helix.

Check the fraud risk on every order before you ship, and refund anything suspicious.

Answer every chargeback before the deadline with the right evidence.

Words to know:

Chargeback: When a customer asks their bank to reverse a card payment. The money is taken back, and you can send evidence to dispute it.

Card testing: When fraudsters use your checkout to try many stolen card numbers with small orders.

Payout: The money your payment provider sends to your bank. It takes out its fees, refunds and any held amounts first.

Payment reserve: Part of your sales that a payment provider holds back for a while. It covers refunds or chargebacks.

3D Secure: An extra check where the shopper's bank asks them to confirm a card payment. It often happens in their banking app.

All words are explained in the glossary.

Lesson 24.1: Your payment mix and what it really costsGrow

In short

Each way to pay has its own fee, payout speed and risk.

Do this now

Step 1: Download last month's payout reports from each provider (Shopify Payments, any wallet or buy now pay later provider).

Why this matters

Each way to pay has its own fee, payout speed and risk. The fee on the price page is rarely the whole cost.

Step 1 of 60 of 6 done

Download last month's payout reports from each provider (Shopify Payments, any wallet or buy now pay later provider).

Expected result

You have one report per provider.

Tips

Payout: The money your payment provider sends to your bank, after taking its fees, refunds and any held amounts.
Buy now pay later: Payment options that let shoppers split the cost into smaller payments.

Lesson 24.2: Holds, reserves and frozen payoutsGrow

In short

A payment provider can hold part of your money if it sees risk.

Do this now

Step 1: Read each provider's rules on holds and reserves once (see Shopify: reserves ).

Why this matters

A payment provider can hold part of your money if it sees risk. For example: a new account, a sudden jump in sales, slow delivery or many disputes. A hold in peak season can leave you unable to pay suppliers.

Step 1 of 60 of 6 done

Read each provider's rules on holds and reserves once (see Shopify: reserves). A reserve is money held back for a while in case of refunds.

Expected result

You know what triggers a hold.

Tips

Open: Shopify: reserves

Lesson 24.3: Chargebacks: how they work and how to answerGrow

In short

A chargeback is when a customer asks their bank to reverse a card payment.

Do this now

Step 1: Open the chargeback in Shopify and note the deadline to reply.

Why this matters

A chargeback is when a customer asks their bank to reverse a card payment. The money and a chargeback fee are taken straight away. On Shopify Payments, the fee comes back if you win. You have a short time to prove the sale was fine.

Step 1 of 80 of 8 done

Open the chargeback in Shopify and note the deadline to reply. It is usually 7 to 21 days on Shopify Payments (see Shopify: responding to chargebacks).

Expected result

You know your deadline. Customers usually have about 120 days to dispute, often counted from the expected delivery date.

Tips

Open: Shopify: responding to chargebacks

Chargeback: When a customer asks their bank to reverse a card payment. The money is taken back, and you can send evidence to dispute it.

Lesson 24.4: Stopping fraud and card testingGrow

In short

Card testing is when crooks use your checkout to try stolen card numbers.

Do this now

Step 1: Learn the signs. Look for bursts of small orders, the same cheap item, or odd names or emails.

Why this matters

Card testing is when crooks use your checkout to try stolen card numbers. They usually place many tiny orders on your cheapest product. Each one can turn into a chargeback and fees.

Step 1 of 60 of 6 done

Learn the signs. Look for bursts of small orders, the same cheap item, or odd names or emails. Also many failed payments, or different addresses on one card.

Expected result

You can spot card testing.

Tips

Card testing: When fraudsters use your checkout to try many stolen card numbers with small orders.

Lesson 24.5: Refunds, partial refunds and goodwillGrow

In short

A fast, fair refund is cheaper than a dispute .

Do this now

Step 1: Write a one-page refund rule.

Why this matters

A fast, fair refund is cheaper than a dispute. A clear rule saves you deciding each case from scratch.

Step 1 of 50 of 5 done

Write a one-page refund rule. Say when you refund in full, when you offer part refunds or credit, and who says yes.

Expected result

Your team can handle any refund the way you would.

Words to know in this module

Chargeback: When a customer asks their bank to reverse a card payment. The money is taken back, and you can send evidence to dispute it.
Payout: The money your payment provider sends to your bank, after taking its fees, refunds and any held amounts.
Payment reserve: Part of your sales that a payment provider holds back for a while in case of refunds or chargebacks.
Card testing: When fraudsters use your checkout to try many stolen card numbers with small orders.
3D Secure: An extra check where the shopper's bank asks them to confirm a card payment, often in their banking app.
Profit: Usually means contribution profit: what is left from sales after product cost, shipping, payment fees, discounts, refunds and ads. Net profit also takes off fixed costs.
Buy now pay later: Payment options that let shoppers split the cost into smaller payments.
Margin: The share of each sale you keep after product cost. A $100 sale with $40 product cost is a 60% margin.

All words to know