Network dispute resolution programs
If you use Shopify Payments, then you might be enrolled in a network dispute resolution program (NDRP) to help prevent chargebacks. This program automatically manages customer disputes and aims to reduce the number of chargebacks that your business incurs.
Card networks, not Shopify, impose chargeback monitoring requirements on payment processors and merchants to help avoid network fines or additional restrictions. NDRP enrollment is an account action that can be used when your chargeback activity is above those requirements.
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Reasons for being enrolled in an NDRP
Your Shopify account is reviewed regularly. If a regular review determines that your account presents an elevated risk of chargebacks and disputes, then you might be enrolled in an NDRP. This can be based on several factors including, but not limited to, your customer dispute history and general business practices. Merchants with an NDRP-inclusive chargeback rate of 1.5% or higher over the last 90 days can be automatically enrolled in an NDRP. You receive a notification when you're enrolled in an NDRP.
Merchants below a minimum order volume are excluded to help protect newer and smaller businesses from being unfairly penalized.
If you're enrolled in an NDRP because of a high chargeback rate, then disputes can be resolved automatically with funds reimbursed to customers, and you're charged a fee for each dispute that's resolved through the program. A 10% reserve is also applied to your Shopify Payments payouts which can be lifted early if you exit the program. The reserve terms are communicated to you by email. Learn more about reserves in Shopify Payments.
If your 90 day chargeback rate remains above 1% after the initial reserve expiration date, then additional consequences may be applied, including further reserves or payout holds.
How chargebacks are handled during an NDRP
After your store is enrolled, all new customer disputes are resolved automatically through the NDRP using the following process:
- The dispute is resolved automatically, with the full order amount reimbursed to the customer.
- You're charged a fee for each dispute that's resolved through the program.
Disputes resolved through an NDRP are handled before they become formal chargebacks, so there's no evidence-submission window and no option to contest the dispute or submit evidence. After a dispute is resolved through an NDRP, the outcome is final and can't be appealed or reversed through Shopify.
Recognizing an automatically resolved dispute
A dispute that's resolved automatically has a status of Resolved in your Shopify admin. You can access a list of all the orders that have a dispute with this status.
Steps:
From your Shopify admin, go to Orders.
Click the Search and filter button.
Click Add filter.
From the Add filter drop-down menu, select Chargeback and inquiry status.
From the Select a value drop-down menu, select Resolved.
Exiting an NDRP
To exit an NDRP, your NDRP-inclusive chargeback rate over the last 90 days must drop below 1.00% and stay below 1.00% for 30 consecutive days while you continue to process on Shopify Payments. If you've been suspended or terminated from Shopify Payments, then you might not be eligible to exit the NDRP.
Your NDRP-inclusive chargeback rate includes standard chargebacks, disputes that are resolved automatically through an NDRP, and disputes that you win. You can track your chargeback rate in the chargeback rate report and review your current chargeback monitoring status from your Shopify Payments settings. Learn more about chargeback monitoring.
View your chargeback rate
The default chargeback rate displayed in your Shopify admin includes disputes that are resolved automatically through an NDRP.
Steps:
From your Shopify admin, go to Analytics > Reports.
In the Search reports field, search for
Chargeback rate.Click Chargeback rate.
Use the date range selector to review the last 90 days.
If you're terminated from Shopify Payments
If your store is terminated from Shopify Payments, then you might still be enrolled in an NDRP after a review of your past transactions. After you're enrolled, any customer disputes on orders that are processed through Shopify Payments before the termination get resolved automatically through the NDRP, with a dispute resolution fee for each case. Refer to the Network dispute fees for your country or region.
Disputes related to orders created after your Shopify Payments termination aren't processed by Shopify Payments, aren't eligible for the NDRP, and they follow the regular chargeback process.
Network dispute fees
If your store is enrolled in an NDRP, then the following dispute resolution fee applies for each dispute that's resolved automatically. The fee depends on your store's country or region. If you're based in a country where multiple payout currencies are available, then the dispute currency is based on the currency of the payout the order is added to.
| Country or region | Dispute resolution fee |
|---|---|
| Australia | $25 AUD |
| Austria | €15 EUR |
| Belgium | €15 EUR |
| Bulgaria | €15 EUR |
| Canada | $15 CAD or $15 USD |
| Croatia | €15 EUR |
| Cyprus | €15 EUR |
| Czechia | €15 EUR or 400 CZK |
| Denmark | €15 EUR or 115 DKK |
| Estonia | €15 EUR |
| Finland | €15 EUR |
| France | €15 EUR |
| Germany | €15 EUR |
| Gibraltar | £15 GBP |
| Greece | €15 EUR |
| Hong Kong SAR | $85 HKD |
| Hungary | €15 EUR or 7000 HUF |
| Ireland | €15 EUR + 23% Value added tax (VAT) |
| Italy | €15 EUR |
| Japan | ¥1,300 JPY |
| Latvia | €15 EUR |
| Liechtenstein | €15 EUR or 15 CHF |
| Lithuania | €15 EUR |
| Luxembourg | €15 EUR |
| Malta | €15 EUR |
| Mexico | $200 MXN |
| Netherlands | €15 EUR |
| New Zealand | $20 NZD |
| Norway | €15 EUR or 200 NOK |
| Poland | €15 EUR or 75 PLN |
| Portugal | €15 EUR |
| Romania | €15 EUR or 75 RON |
| Singapore | $16.35 SGD |
| Slovenia | €15 EUR |
| Spain | €15 EUR |
| Sweden | €15 EUR or 150 SEK |
| Switzerland | €15 EUR or 15 CHF |
| United Kingdom | £10 GBP |
| United States | $15 USD |
If you have questions, then contact Shopify Support.