A chargeback happens when a customer disputes a charge with their bank instead of asking you for a refund. For example, when they claim they didn't recognize the purchase. If you lose that dispute, it costs you in two separate ways: Chargeback Loss and Chargeback Fee.
TrueProfit tracks both automatically and deducts them from your Net Profit, so your dashboard reflects what a lost chargeback really costs you, not just what you see in Shopify Payouts.
What is Chargeback Loss
Chargeback Loss is the order money the bank forcibly pulls back out of your account when you lose the dispute. You lose the sale, and the money is taken from you directly.
Example: A customer pays $200 for an order. Months later they dispute it with their bank. The bank sides with them, so it pulls the $200 back out of your account. That $200 is the Chargeback Loss.
What is Chargeback Fee
Chargeback Fee is a flat penalty your payment provider (Shopify Payments) charges for handling the dispute. You pay it on top of losing the order money.
Example: For that same disputed order, Shopify Payments also charges you a $15 dispute fee. So your total hit is $200 (loss) plus $15 (fee) = $215.
Where this data comes from
TrueProfit automatically syncs chargeback and dispute data from your Shopify Payments account. You don't need to enter anything manually.
If you haven't granted access yet, you'll see a banner asking you to connect. Click it and approve the request so TrueProfit can start pulling in your dispute data.
Note: This currently supports Shopify Payments only. If you use a different payment gateway (e.g. Stripe, PayPal), chargebacks from those won't be tracked yet.
When a chargeback gets counted
TrueProfit only records a chargeback once Shopify has finalized the outcome, meaning the dispute has a confirmed finalize date and has ended in one of these two states:
Lost: the bank ruled in the customer's favor
Accepted: you (or your team) accepted the chargeback instead of fighting it
While a dispute is still under review (no finalize date yet), it has zero impact on your Net Profit. Nothing changes until Shopify confirms the final outcome.
Impact on Net Profit
Both Chargeback Loss and Chargeback Fee are deducted directly from Net Profit:
Net Profit = Revenue + Tips + Gift Card Sales − Total Costs - Chargeback Loss - Chargeback Fee
By default app uses:
Net Profit = Revenue + Tips + Gift Card Sales − Total Costs − Taxes Collected - Chargeback Loss - Chargeback Fee
If you check "Exclude Taxes Collected" in Calculation Preferences, the Taxes Collected metric is removed from the default formula (Net Profit = Revenue + Tips + Gift Card Sales − Taxes Collected − Total Costs - Chargeback Loss - Chargeback Fee), and Net Profit becomes: Net Profit = Revenue + Tips + Gift Card Sales − Total Costs - Chargeback Loss - Chargeback Fee
Importantly:
Your Revenue, Gross Profit, and Total Costs stay exactly the same.
Only Net Profit and Net Profit Margin go down to reflect the loss.
This means COGS and shipping you already spent on a disputed order stay counted as a cost. Losing a dispute doesn't undo that spend, it just adds the loss and fee on top.
Choosing which date it's recorded on
Go to Calculation Preferences → Chargeback Loss and Fee: Resolution date or Order date to control when these two deductions show up in your reports.
Resolution date (default): the loss and fee count on the day the dispute was finalized. Your past reports stay unchanged.
Order date: both are moved back to the original order's date instead, and that past period gets restated.
Note: If your shop sells in one currency but you view your dashboard in another (for example, your shop charges in EUR but you view reports in USD), Chargeback Loss and Chargeback Fee are converted using the exchange rate from the day the dispute was finalized, not the order date, even if you choose Order date above. Switching this setting only changes which date the amounts are recorded on, not which exchange rate is used to convert them.
If you choose Order date, this will happen:
1. The value of these Dashboard metrics changes: Chargeback Loss, Chargeback Fee, Net Profit, and Net Profit Margin. Your Revenue, Gross Profit, and unit counts do not change.
Of these, Chargeback Loss and Chargeback Fee can be checked against your Shopify Payments payouts, and their timing will no longer match, because Shopify Payments records them on the resolution date while TrueProfit now records them on the order date.
2. Your past reports get recalculated: moving the loss and fee into an earlier month restates that month.
Example: An order is placed in March. The dispute is lost and finalized in June, with a $100 loss plus a $15 fee ($115 total).
Resolution date (default): the −$115 is deducted in June.
Order date: the −$115 moves to March, so March restates to absorb the loss and June becomes $0 for this order.
What's not included yet
Gateways other than Shopify Payments (Stripe, PayPal, etc.)
Chargebacks covered by Shopify Protect: Shopify Protect is a program that automatically covers certain fraud-related chargebacks on eligible orders. If a chargeback is confirmed as covered, it's not counted as a Chargeback Loss.
Disputes still pending or already won: No deduction until finalized as Lost/Accepted
Tax on the disputed amount: not separately reversed, may cause a small mismatch vs. Shopify Payouts
Partial chargebacks: correct total amount deducted, but no item-level cost breakdown
Indirect costs: card network fines, higher processing rates, payout reserves
A view for open/at-risk disputes: only finalized disputes show up
Order-level detail: shown as a store total, not tied to a specific order
Reversed decisions: if a Lost dispute later gets overturned, it won't auto-correct yet