Shopify NDRP: What It Means and How to Exit
Shopify's Network Dispute Resolution Program (NDRP) refunds new disputes for enrolled Shopify Payments stores. Shopify sends the funds back to the buyer. It also adds a fee. You can't send evidence or appeal.
Shopify can auto-enroll a store when its 90-day rate is 1.5% or higher. The separate exit test lasts 30 straight days. The store must keep using Shopify Payments during that time.
I've handled disputes on Shopify stores I ran. First, check whether the order became a normal chargeback. An NDRP order calls for prevention and exit work.
Since evidence can't change its result, plan for after Shopify releases enrollment too.
Use our ROI calculator to compare prevention costs with the NDRP cases in your log.
Key takeaways
What is Shopify NDRP?
Shopify NDRP is a program for Shopify Payments accounts. It settles new customer disputes before they become formal chargebacks. Shopify refunds the buyer from your account. It also adds a dispute resolution fee. You get no evidence or appeal step.
This differs from a normal Shopify chargeback. A formal chargeback opens a response period. NDRP ends the case before that step.
No evidence form opens. The result is final.
Shopify reviews each account for higher dispute risk. Its published rate can cause auto-enrollment. Shopify excludes stores below a set order volume. It doesn't publish that minimum.
Rate-based enrollment also brings a 10% payout reserve. The notice gives its terms. Shopify can lift the reserve early after NDRP exit.
The notice explains the account action. Each affected order shows one case. Keep both records.
Your team needs the notice to track the account. It needs the order timeline to review each case.
NDRP applies to the Shopify Payments account named in the notice. It doesn't cover orders run through a third-party payment provider. Those orders follow that provider's own dispute process.
This means one store can have two dispute paths. A Shopify Payments order may go through NDRP. Another order may open a normal case with a different provider.
Give staff one rule for sorting them. Start with the payment provider on the order. Then check the first dispute event in that provider's records.
What happens to an NDRP dispute?
A completed NDRP dispute is refunded automatically and can't be contested, appealed, or reversed through Shopify.
Use this three-part NDRP Order Check before closing the evidence task,
- Order timeline: Check for a customer-favor resolution.
- Event sequence: Confirm the result appears before a chargeback or evidence-submission event.
- Resolution fee: Find the dispute-resolution fee on the affected order.
1. Check the order timeline
An NDRP order shows a result in the customer's favor. Open the order in Shopify admin. Read its timeline from oldest to newest.
Don't use the payout total to name the case. Staff refunds and reserves can reduce it. Chargebacks and NDRP cases can do the same.
The timeline shows which event came first. It also shows who began the refund.
Copy the first dispute event into your case log. Add its date and exact label. This creates a record that another staff member can check.
Don't use a later payout entry as the first event. Payouts group several balance changes. They can hide the order in which the case moved.
2. Check for the missing normal dispute event
Shopify's normal chargeback response workflow opens a response period. NDRP has no earlier chargeback event. Use our Shopify chargeback process only for an open case. It must show an evidence deadline.
If the status is unclear, send Shopify Support the order ID. Include the exact timeline text. Ask whether Shopify logged NDRP or a formal chargeback.
The answer sets your next task. That task will be prevention or evidence.
For a formal chargeback, note the evidence due date. Assign the case to the person who handles responses. Keep that work out of the NDRP exit queue.
For NDRP, close any planned evidence task. Assign a cause review instead. This stops staff from building a file Shopify won't accept.
3. Check the dispute-resolution fee
An NDRP order includes a dispute resolution fee. Find it in the order details. The amount varies by region. Payout currency can also change it.
Use Shopify's network dispute fee table for the current amount. Log the fee apart from the refund. This shows the full cost of NDRP.
A fee alone doesn't prove the case type. Check the timeline result too. Then confirm that no formal chargeback came first.
Finance should log three costs on separate lines,
- Refunded order value
- NDRP dispute resolution fee
- Lost goods or fulfillment cost
These costs answer different questions. The refund shows the sale reversed. The fee shows the program cost. The goods line shows what the business can't recover.
Once all three signals match, close the evidence task and classify the reason behind the dispute.
Use the same reason names across all cases. Good starting groups include unknown charge, fraud, delivery, product, and refund. Stable names make the weekly trend useful.
Keep the order link beside the group. A total without source orders is hard to audit. It also makes a wrong label hard to fix.
Why was my store enrolled in Shopify NDRP?
Shopify enrolls stores because its review finds higher dispute risk. It can auto-enroll at the rate shown above. The review uses dispute history and business practices.
Shopify uses an NDRP-inclusive rate from the last 90 days. It counts normal chargebacks and NDRP cases. It also counts disputes you win. Winning a case won't remove it from this rate.
The rate uses chargeback-eligible Shopify Payments sales. Orders paid through another provider don't enter this Shopify figure. Review those disputes in the other provider's dashboard.
The 90-day period rolls forward each day. It isn't a fixed calendar quarter. An older dispute leaves only when it ages past the lookback.
Use the enrollment notice and Shopify admin for different parts of the diagnosis,
- Enrollment notice: Record the action date, reserve terms, and account requirements.
- Chargeback rate report: Track the rolling 90-day rate and new disputes.
- Affected orders: Group disputes by reason and the events before bank contact.
- Shopify Support: Clarify any account term you can't map to an admin report.
The rate explains why the account is at risk. The order groups show what you can change.
Read both before choosing a fix. The rate shows the size of the account problem. The groups show where the new cases come from.
A high rate doesn't prove fraud is the cause. The order review may show late delivery instead. That result calls for better shipping updates. Stricter fraud rules won't solve it.
How does Shopify NDRP exit work?
To exit NDRP, keep the 90-day rate below 1.00%. Hold it there for 30 straight days. Keep using Shopify Payments during that time.
The rate looks back 90 days. One fixed order won't reset it. Old disputes must age out of the window. New disputes must stay low enough to keep the rate below the limit.
The exit test measures a full period. A new dispute can push the rate above the limit. That can restart the count of straight days.
Keep processing real customer orders through Shopify Payments. Lower sales volume isn't an exit plan. A few new disputes carry more weight when eligible sales are low.
The exit plan has four parts,
- Track the exact exit test.
- Reduce the disputes feeding the rate.
- Compare Ethoca and Verifi coverage.
- Prepare the alert handoff.
1. Track the exact exit test
Use Shopify's Chargeback rate report as the exit scorecard. Open Analytics > Reports in Shopify admin. Search for Chargeback rate. Set the range to the last 90 days. You can also check Settings > Payments for the account status.
Record these items on the same day each week,
- NDRP-inclusive chargeback rate
- New standard chargebacks
- New NDRP resolutions
- Dispute reason for each new case
- Shopify Payments account status
Don't rely on dispute wins for exit. Shopify still counts those cases. Keep tracking until the account status changes. Direct word from Shopify also proves exit.
Keep the source report with each weekly entry. A screenshot or export shows what staff saw that day. Remove customer data before sharing it outside the payment team.
The weekly view also shows whether a fix worked. Compare each reason group with prior weeks. Review the matching control when one group stays flat.
2. Reduce the disputes feeding the rate
Start with the reason that creates the most new cases. Look for unknown charges and high-risk orders. Check missing deliveries, product complaints, and late cancellations too.
Match each pattern to one operational change,
- Unrecognized charge: Use a billing descriptor customers can connect to the store.
- High-risk order: Review the fraud signals before fulfillment.
- Delivery problem: Send tracking and delay updates before the customer asks.
- Product complaint: Make the description and condition clear before purchase.
- Refund or cancellation: Publish the steps and answer requests quickly.
These fixes can reduce future disputes. They can't reopen a finished NDRP case.
Start with the largest group instead of changing everything. One clear change is easier to track. It also shows whether that cause responds.
For unknown charges, compare a settled order with the statement text. Customers should connect the name to the store. Update the descriptor if they can't.
For delivery cases, send tracking when the carrier has the parcel. Send a new date when the shipment slips. Use a support address checked each day.
For refund cases, place the policy near the order confirmation. State how to ask and when you'll reply. A fast answer can stop a bank call.
Fraud and product complaints need different controls. Review high-risk orders before shipping. Make product details and delivery promises match the actual order.
3. Compare Ethoca and Verifi coverage
Chargeback.io can run your alert coverage after Shopify releases any conflicting enrollment. We sell alerts from Ethoca by Mastercard. We also sell Verifi alerts from Visa. Verifi runs RDR and CDRN.
Our Shopify Payments integration matches each alert to an order. Ethoca Alerts and CDRN support manual review. The integration can also refund them based on your settings.
This gives you more control than a forced NDRP refund. You can see the alert source and matched order. You can also set how covered alerts should be handled.
The three products don't work in the same way. Ethoca Alerts is Mastercard-first. RDR is Visa-only and uses automatic decisions. CDRN is Visa-first and routes cases for a response.
For most Shopify stores, the useful coverage split is,
- Ethoca Alerts: Mastercard-first coverage, with limited coverage on other networks.
- Verifi RDR: Automated Visa dispute resolution with worldwide coverage.
- Verifi CDRN: Pre-chargeback alerts for eligible transactions through participating issuers. Use alongside Ethoca Alerts where coverage is available.
RDR-resolved disputes are excluded from Shopify’s standard chargeback rate, but included in the NDRP-inclusive rate used for account monitoring and NDRP exit. RDR can reduce dispute-handling work, but those resolutions still count toward that monitoring rate.
For Visa chargeback prevention, we recommend a combination of CDRN and Ethoca Alerts. The downside of CDRN is that it's beneficial for merchants who sell for the US, because the alerts have no coverage outside the States. However, Ethoca alerts offers some Visa coverage.
Chargeback.io is an official partner of both companies. Our alerts use pay-per-use pricing. There is no monthly minimum or contract.
Check the card brands behind your recent disputes. A mixed Visa and Mastercard base usually needs both networks. A one-sided card mix can start with its main network.
For most Shopify Store, use CDRN and Ethoca, since those will work to reduce your chargeback rate with Shopify.
4. Prepare the alert handoff
Gather the enrollment details before Shopify confirms your NDRP exit. This shortens the gap between Shopify's release and your own alert coverage.
Setup needs the payment details that identify your account. Ethoca and CDRN use the exact billing descriptor.
Shopify Support can provide payment details you don't have. Don't guess the descriptor. It must match the text on the customer's statement.
One setup limit matters here. Shopify NDRP can clash with a separate RDR enrollment, if you decide to use RDR for purposes other than lowering chargeback rates. Verifi may return an Enrolled Elsewhere status.
Ask Shopify Support if it must release the enrollment after exit. Our team can then check which alert products your account can use.
Plan this check before exit so the handoff can move faster. Gather the descriptor and processor details. Keep Shopify's release message with the setup record.
Alerts still have coverage limits. Not every bank sends them. Wallet payments can be harder to match. PayPal and Klarna disputes stay in their own systems.
Those gaps make alerts an added prevention layer. Keep the service and fraud fixes above. They address cases that no alert network can catch.
Alerts only protect future cases. They resolve covered disputes before a formal chargeback. This helps guard against the same rate problem later.
FAQ
Can I submit evidence or appeal an NDRP dispute?
A completed NDRP result is final, with no evidence or appeal step. Use the formal process only when an open case has a due date.
How do I know an order was resolved through NDRP?
Confirm a customer-favor result and resolution fee on the order. Check that no formal chargeback appears earlier.
What is the Shopify NDRP fee?
Shopify charges a fee for each NDRP case. The amount varies by region and payout currency, so use Shopify's official table.
Does an NDRP dispute count as a chargeback?
An NDRP dispute ends before a formal chargeback opens. Shopify still includes it in the dispute rate used for program tracking.
Does Shopify publish the NDRP enrollment threshold?
Yes. Shopify publishes the trigger stated above but keeps its order-volume floor private.
Can Ethoca or Verifi alerts get my store out of NDRP?
Alerts support future prevention after the network enrollment is released. Shopify's separate rate test still controls exit.
