Dear Shopify, credit card/banking partners, and Tobias Lütke: STOP STEALING OUR PAYOUTS

Dear Shopify, credit card/banking partners, and Tobias Lütke: STOP STEALING OUR PAYOUTS



Foremost, we are extremely disappointed in you for stealing our payouts to pay for a customer’s mistake.
Second, your chargeback policies are ridiculous, discriminatory, and counterproductive for small vendors on your platform.
If a customer independently and willfully chose to place an order and then later flags it as fraudulent so that they can extort $10,000 worth of products from us then it is certainly not our responsibility to foot a transaction fee of $620.42.
How can the customer’s bank despite all the proofs that we provided, choose to “side” with their customer while providing us with no explanation at all, nor the possibility to appeal their ill, dictatorial conclusion.
Is it simply because the bank does not want to lose a customer, that our small business is bullied into cleaning up financially after them?

Need we remind you again what happened?

- Harrison Jay, a scammer, who also goes by the name Harry Jay, approached us via an email on the 1st of November 2021, in which he inquired about placing an order for wrapping paper and masks, totaling $10,000 for his “business” Zeprox Trading Comp, operating in the Caribbean
- We subsequently created a Draft Order for him and processed his payment through a credit card (with a US address) on the 2nd of November 2021 for order #1008
- The total amount came down to $17,289.15, which included $5,989.15 for shipping and $1,300 in taxes
- As we have not received such a large online order before, the payment was put on hold at your own discretion and we were advised to “review the fraud analysis and determine if this order is fraudulent”. Which we did, yet the payment was still held by you, Shopify
- During that time Harry Jay kept insisting that we deduct the shipping fee of $5,989.15 from that payment to provide to a local family shipping business by the name “Easy Shipping” to deliver his order to 25 Broad St, Bridgetown, in Barbados, where he operates a chain of gift shops, as per the email exchanges and phone conversation we had with him
- At first, we were concerned that the shipping fee was a bit too expensive and suggested that there could be other economical options. Harry Jay insisted that we go ahead with his hand-picked shipping company. And while the funds were being held by Shopify, Harry Jay insisted that we pay his shipping company upfront from our own pocket. We refused to do so and advised him that the shipping amount will be transferred to the shipping company as soon as we received full payment from Shopify
- We were lucky that we did not make any payment to the shipping company as soon later we figured out that Harry Jay is a scammer, and his goal was to place an order, have us pay his shipping company (upfront with our own money), the products will be picked up from our office by this fake shipping company (leaving no trail or address), and then he would go to his bank and claim that the order was fraudulent order (which he did), and the entire transaction was canceled
- We not only were manipulated by this malicious customer named Harry Jay, but also wasted our time and energy in working to fulfill an order that was not real!
- Clearly, this was an elaborate plan that Harry Jay certainly is familiar with and may have used in the past to extort money and products from online businesses
- We would have lost $10,000 worth of products in addition to the payment of $5,989.15 that we would have provided to the shipping company as we waited for our payout to be cleared by Shopify
- Now, despite all the email exchanges with the customer that we provided to Shopify and its credit card/banking to assert that Harry Jay attempted to scam our business, we were shocked to discover last Friday that the chargeback was resolved in the customer’s favor!

This is unprecedented for us and we are not satisfied with the outcome. It is not our responsibility to foot a credit card transaction fee worth, $620.42. So, Shopify kindly STOP confiscating our sales to make up for a scandal that WE ARE NOT RESPONSIBLE for!

We are very disappointed in Harry Jay’s bank for shutting the door on us. It is cruel for a bank to ask us to submit evidence, while then siding with their customer without providing us with no explanation at all, nor the possibility to dispute their irresponsible decision to inflict that fee upon our business. In our view, the only reason the bank will side with their customer is simply that they do not want to lose business, while aware that we had no way of contacting them. If this is not theft then what is it?

Whether we retrieve our money or not, only one thing matters now moving on: we have zero respect for Shopify and its credit card/banking partners. And as a saying goes, karma is a bitch.

Armel
Cofounder
www.pentagon.ltd
Woodbridge, ON, Canada