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.

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're enrolled in an NDRP. This can be based on several factors including, but not limited to, your customer dispute history and general business practices. You receive a notification when you're enrolled in an NDRP.

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 full order amount is refunded 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

You can identify a dispute that was resolved automatically through an NDRP by reviewing the affected order in your Shopify admin. Review the following signals:

• The order timeline records that the dispute was resolved in the customer's favor, without an earlier event that a chargeback was opened.
• A dispute resolution fee is applied to the affected order.
• Across your store, you might notice fewer formal chargeback notifications and more automatic refunds on disputed orders. This is expected behavior for a store that's enrolled in an NDRP.

Exiting an NDRP

To exit an NDRP, you must meet specific requirements, such as achieving a certain dispute rate. These requirements are shared with you when you're enrolled in the NDRP. Your dispute rate includes both chargeback volume and disputes managed through the NDRP program. You can track your dispute rate in the chargeback rate report and review your current chargeback monitoring status from your Shopify Payments settings. Learn more about chargeback monitoring. If you've been suspended or terminated from Shopify Payments, then you might not be eligible to exit the NDRP.

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.

If you have questions, then contact Shopify Support.