How to stop refund abuse and return fraud on Shopify
- Write the policy downA return window, final-sale items and refund timing, shown to the customer at checkout.
- Limit returns per customerA maximum per 90 days, stated in the policy and applied to everyone.
- Require tracked returnsCheck the return tracking number isn't the outbound label or one already used on another return.
- Weigh what comes backCompare the carrier-scanned or inspected weight with the expected weight of the items.
- Review before refundingHigh-value returns, short keep times, high return rates and customers with earlier chargebacks.
- Refund what's owed promptlyAnd keep the record: it is the strongest evidence if a chargeback follows.
What you're up against
- False "not received" claims on parcels the carrier scanned as delivered.
- Wardrobing: an item used once, then returned as new.
- Empty box or swapped item: a return lighter than the goods, or holding something else (see what is return fraud).
- Serial returning: a few customers returning most of what they buy.
- Double dipping: a refund on a return, then a chargeback on the same order.
Example: a lighter-than-expected return
A customer returns a $220 jacket ten days after delivery. The return tracking number matches one already used on an earlier return, and the carrier-scanned weight is 0.3 kg against an expected 1.2 kg. The store holds the refund, inspects the parcel when it arrives, finds no jacket inside and declines the refund under its published policy, keeping the inspection record in case a chargeback follows.
Where Verdikx fits
On Growth and Pro, every Shopify or Loop (beta) return request gets an Approve, Review or Decline suggested recommendation with its reasons, including return rate, keep time, tracking and weight checks and chargeback history, and each customer gets a refund-abuse score from their refund and dispute history that also feeds order screening. Verdikx never approves, declines or refunds a return on its own, and it isn't a returns portal: it works alongside Shopify returns and Loop. See return fraud detection.
Reason codes this answer covers
- Visa 13.6: Credit Not Processed: often winnable
- Visa 13.7: Cancelled Merchandise/Services: sometimes winnable
More questions
Can I refuse a refund on Shopify if I suspect return fraud?
You can apply the policy you published: a return outside the window, a final-sale item or a parcel that arrives empty can be declined, with the reason recorded. Apply it consistently, because a refused refund can turn into a chargeback, and the policy shown at checkout and your inspection record are then your evidence.
Does store credit instead of refunds reduce return abuse?
On the categories most prone to wardrobing, offering store credit or an exchange by default reduces it without refusing anyone. State it in the policy and at checkout, so the customer saw it before paying, and keep the record of what they accepted.
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Sources
- Visa Business News AI10681: Updates and clarifications to dispute rule language (14 January 2021) (checked October 5, 2026)
- Visa Core Rules and Visa Product and Service Rules (18 April 2026), Chapter 11 Dispute Resolution (checked October 5, 2026)
Last reviewed by Verdikx Research.