1/26/2025

Payment Discrepancies on Shopify: What to Do

Payment discrepancies can be frustrating for any online store owner. If you run a store on Shopify, you might occasionally come across issues that make you question your earnings. This blog post dives deep into the various types of payment discrepancies you might face, their potential causes, and how to resolve them effectively.

Understanding Payment Discrepancies

What is a Payment Discrepancy?

A payment discrepancy generally refers to a mismatch between the sales you see recorded in your Shopify dashboard and the actual funds that are deposited into your bank account. This could arise from several reasons, such as processing fees, chargebacks, refunds, or even technical glitches in the system.

Common Sources of Payment Discrepancies

Here are a few typical sources of payment discrepancies you might encounter on Shopify:

Processing fees: Every payment gateway charges a fee for processing transactions. Depending on your payment provider, you might notice that your sales reflect differently after fees are deducted.
Chargebacks: If a customer disputes a charge, a chargeback occurs. This may lead to funds being returned to the customer, creating a discrepancy in your expected payout. You can learn more about chargebacks and their implications to understand how to potentially minimize them.
Refunds: When you process a refund, the amount refunded can lead to discrepancies. Make sure to account for every refund in your financial records.
Currency conversion: If your store operates in multiple currencies, conversion rates might cause your reports to show differences in expected payouts.
Payment method failures: Occasionally, transactions fail, and this can also lead to discrepancies because the sale may appear in your dashboard but not actually result in a payment.

What to Do When You Encounter a Payment Discrepancy

When you notice a payment discrepancy, you may start to feel a bit uneasy. Here’s how to address the issue systematically:

1. Verify Your Records

First, double-check your transaction records within Shopify:

Go to Shopify Admin > Orders and review your sales.
Check your Payouts in the Payments settings to see what has actually been processed.

By comparing totals, you’ll get a clearer sense of where the discrepancies may lay.

2. Review Fees from Payment Processors

Understanding how fees work with your payment processors is essential:

Visit your payment processor’s site (e.g., Stripe or PayPal) and look at their fees structure.
Compare the fees with the charges being deducted from your totals in Shopify. This will help ensure you aren’t being overcharged or missing calculations.

3. Investigate Chargebacks and Refunds

If chargebacks or refunds have occurred, verify that you’ve documented each properly:

You can find chargeback information by going to the Store Settings > Payments and looking for chargeback notifications.
When a refund is issued, it should be reflected as a deduction in your payout, so confirm this is being accurately tracked.

4. Contact Your Payment Provider

If discrepancies persist, it may be time to reach out to your payment gateway’s support team. They can help identify issues that might not be visible from your side. Be sure to:

Provide them with specific transaction details and amounts.
Ask for clarification on any confusing fees or discrepancies they might see from their end.

5. Keep Records Organized

Maintain a detailed financial log of all transactions, chargebacks, refunds, and communications with customers or payment processors. Having a well-structured financial overview can help:

Track discrepancies easier.
Provide evidence for disputes with payment processors or Shopify’s support team.

Tools to Help Manage Payment Discrepancies

Shopify offers various tools that can help manage your finances effectively:

Shopify Reports: These can provide insights into sales, refunds, and more, allowing you to assess discrepancies more accurately.
Accounting Integrations: Tools like Xero and QuickBooks can sync with your Shopify store to give better oversight over your entire financial landscape. You can find tools that integrate with Shopify here.
Automated Reconciliation Apps: Use integrated apps like Reconcilely which can automate the reconciliation process between your Shopify transactions and bank deposits.

Prevention is Better Than Cure

Now that you know how to handle discrepancies, here are some tips to prevent them from happening in the first place:

Always test your payment gateway before going live. By using test orders, you can identify potential issues.
Enable notifications for disputes or chargebacks so you are alerted early on, allowing you greater control in addressing the issue promptly.
Keep your inventory updated to avoid overselling, and ensure that all your stock levels reflect in Shopify accurately to prevent fraud.

Leveraging AI for Customer Support

Consider enhancing your store’s customer support using AI chatbots like those provided by Arsturn. Implementing a conversational AI chatbot can help streamline customer queries regarding payments, refunds, chargebacks, and ensure your customers have a seamless shopping experience. Creating a customized chatbot using Arsturn is easy and doesn't require coding. You can instantly create one by following a few simple steps on their platform, enhancing user engagement while reducing the load on your support team.

Here are some benefits of using Arsturn for your payment resolutions:

Instant Responses: Give immediate support to customers regarding payment-related queries.
Customizable: Tailor the chatbot to reflect your brand's voice and guidelines.
Data Insights: Analyze conversations to improve your payment processes and troubleshoot common issues based on customer feedback.

Final Thoughts

Payment discrepancies can be a daunting part of managing an online store, but with the right strategies and tools, you can tackle them head-on. Remember to stay organized, communicate effectively with your payment providers, and leverage tools like Arsturn to provide the best support and ensure smoother transactions.

With these insights, you’re better equipped to handle potential discrepancies proactively and keep your business thriving. Happy Selling!