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, you keep payouts flowing during big sales, you stop card-testing bots and risky orders before they ship, and you answer chargebacks with the right evidence on time.

Related: Module 22 Shopify store setup, Module 23 Fulfilment, shipping and returns, Module 25 Account safety, ad accounts and agencies, Module 27 Accounting, bookkeeping and tax 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, even in a record month.

Do this:

  1. Work out your real payment fee rate and put it in Helix.
  2. Check the fraud risk on every order before you ship, and refund anything suspicious.
  3. 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 bank takes the money back until you prove the sale.
  • 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, 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.
  • 3D Secure: An extra check where the shopper's bank asks them to confirm a card payment, often in their banking app.

All words are explained in the glossary.

Lesson 24.1: Your payment mix and what it really costsGrow

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.

0 of 6 steps done

Step 1 of 6

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

Expected result

You have one report per provider.

Lesson 24.2: Holds, reserves and frozen payoutsGrow

Why this matters

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

0 of 6 steps done

Step 1 of 6

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

Expected result

You know what triggers a hold.

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

Why this matters

A chargeback is when a customer asks their bank to reverse a card payment. The bank takes the money and a fee straight away, and you have a short window to prove the sale was fine.

0 of 8 steps done

Step 1 of 8

Open the chargeback in Shopify and note the response deadline, 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.

Lesson 24.4: Stopping fraud and card testingGrow

Why this matters

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

0 of 6 steps done

Step 1 of 6

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

Expected result

You can spot card testing.

Lesson 24.5: Refunds, partial refunds and goodwillGrow

Why this matters

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

0 of 5 steps done

Step 1 of 5

Write a one-page refund rule: when you refund in full, when you offer a partial refund or credit, and who approves it.

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 bank takes the money back until you prove the sale.
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
What is left from sales after product cost, shipping, payment fees, discounts, refunds and ads. This is the number Helix cares about most.
Buy now pay later
Payment options like Afterpay or Klarna that let shoppers split the cost.
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