Why Most Shopify Merchants Lose Chargebacks and How to Win More with Safe App

Shopify merchants are navigating a challenging landscape when it comes to chargebacks. You might notice that nearly 80% of disputes stem from friendly fraud—think unrecognized transactions or claims of non-delivery—which alone accounts for a staggering 26% of all cases. When disputes are handled manually, the win rate hovers around a mere 12%. This not only results in lost sales but also incurs fees, like Shopify's $15 chargeback fee, alongside an average loss of $4.60 for every dollar disputed. To step back for a moment, consider that chargeback rates averaging between 0.56% and 0.8% can push many merchants close to or above Shopify’s informal thresholds. This situation risks account penalties and tighter card network rules, which are set to tighten even further in 2026.

Recently, Shopify's dashboard updates have begun reporting all disputes, including those resolved through Visa's Rapid Dispute Resolution. This change can inflate the visible risk and pressure on merchants. While Shopify Protect does offer some fraud coverage, it’s important to note that it still counts toward your chargeback rate and doesn’t guarantee successful outcomes.

So, what’s the solution? Enter automation powered by AI, like the Safe App. This tool can deliver up to 4x higher recovery rates and prevent up to 90% of chargebacks by detecting risks early, automating evidence submission, and leveraging a global merchant network to fight back effectively. On the practical side, this drastically reduces your operational burden and helps keep your chargeback rate below 1%—the critical threshold to avoid penalties. Regularly tracking your chargebacks in Shopify Analytics under Reports > Chargebacks, and segmenting by fraud and delivery issues can help you tailor your prevention strategy.

With Safe App, you gain access to a mobile-first, self-serve platform that sets up in under a minute—no complex integrations or costly consultants required. This empowers you to win more disputes and keep your revenue where it belongs: in your business.

Start your free trial with Safe App today and turn chargebacks from a costly headache into a manageable part of your business.