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Shopify chargebacks: how to respond and how to prevent them
A chargeback is when a customer disputes a charge with their bank instead of asking you for a refund. With Shopify Payments, the bank takes the disputed amount and a chargeback fee straight away (Shopify lists A$25 in Australia and NZ$20 in New Zealand), and you usually have 7 to 21 days to send evidence. The card company decides, which can take up to 75 days, and its decision is final. An inquiry is the lighter version: no money is taken while the bank investigates, but it can turn into a chargeback. The evidence that wins is mostly customer service: tracking and delivery confirmation, your policies, and your messages with the customer. Below is how the process works, what to send for each type of dispute, and how to stop chargebacks before they start.
Updated 4 November 2026
Chargeback vs inquiry
| Chargeback | Inquiry | |
|---|---|---|
| What happens to your money | The disputed amount and the chargeback fee are taken straight away | Nothing is taken while the bank investigates |
| If it goes your way | The amount and the fee are returned | The inquiry is closed |
| If it goes the customer's way | You lose the amount and the fee | It can escalate to a full chargeback |
| How long the review takes | Up to 75 days after you respond | Usually 65 to 75 days |
Chargeback vs refund
A refund is money you choose to send back after the customer asks you. A chargeback is the customer's bank taking the money back, plus a fee, sometimes because the customer couldn't get an answer or didn't know they could simply ask. Card networks expect customers to contact the business first, which makes a quick, helpful reply to 'where's my order?' or 'this arrived broken' one of the cheapest ways to prevent a chargeback.
How a Shopify Payments chargeback works
- The customer disputes the charge with their bank.
- The bank opens a chargeback and takes the disputed amount and a chargeback fee. With Shopify Payments, it comes out of your next available payout.
- Shopify notifies you with a deadline to respond. If the bank's claim is available, read it to see why the dispute was opened.
- You gather and submit evidence, usually within 7 to 21 days.
- The credit card company reviews it, which can take up to 75 days.
- You win (the amount and fee come back), partly win (some of the amount comes back) or lose (you keep nothing).
Good to know
- Shopify doesn't decide chargebacks; the customer's bank and card company do, and there's no appeal once they rule.
- With Shopify Payments, order details are added to your response automatically, including products, addresses, IP address, tracking and refunds. Your response is submitted on the due date even if you add nothing, but adding your own evidence makes it much stronger.
- Shopify lists the chargeback fee as A$25 in Australia and NZ$20 in New Zealand, returned if you win. Check Shopify's current table, as fees can change.
- Your chargeback rate matters. A high rate can affect your Shopify Payments account and features like the Shop app, and card networks such as Visa and Mastercard run monitoring programs that can bring fines or restrictions.
- Some stores are in network dispute resolution programs, which refund the customer automatically before a dispute becomes a formal chargeback, with no evidence window.
- If Shopify's fraud analysis marks an order high risk, review it before you fulfil it. Cancelling a fraudulent order is better than fighting the chargeback later.
What evidence to send for each dispute type
| Dispute type | What the customer says | Strongest evidence |
|---|---|---|
| Product not received | It never arrived | Tracking showing delivery to their address, the carrier's delivery photo or signature, and your messages about the delivery |
| Product unacceptable | It's damaged, faulty or not as described | Your product listing at the time of purchase, photos before shipping, and messages offering a fix |
| Credit not processed | They're owed a refund that never came | The refund record, your refund policy, return tracking, and messages about the refund |
| Fraudulent | They didn't make the purchase | Matching billing address and security code checks, 3D Secure, earlier orders from the same customer, and delivery to the billing address |
| Duplicate | They were charged twice | Transaction records showing separate orders, or proof you already refunded the duplicate |
| Subscription canceled | They were charged after cancelling | Your subscription terms, cancellation records and renewal reminders |
| General | The amount was wrong | An itemised receipt, the checkout total they saw, and your pricing policy |
How to write a response that wins
- Put your strongest proof first. Bank reviewers handle many disputes a day and may spend only a few minutes on yours.
- Order it: direct proof (delivery confirmation, refund record), then the customer's own messages, then your policies, then supporting context.
- Label every piece clearly, for example 'Order confirmation email sent to the customer on 15 March showing the itemised total', not 'attached screenshot'.
- Add what only you have: emails, DMs and chat messages with the customer, the policy they agreed to at checkout, and the delivery photo if it's not already included.
- If the customer went straight to their bank without contacting you, say so, show that no support request came in, and show your contact details and returns process.
- If you genuinely owe the customer a refund, Shopify suggests refunding it. You might lose the chargeback, but it's good service and can prevent future disputes.
How to prevent chargebacks
- Make your contact details easy to find, and reply quickly when customers raise a problem.
- Set your billing statement text to your store name or domain so customers recognise the charge, and send receipts.
- Ship promptly, give realistic delivery estimates, and contact customers when an order is delayed. See what to do when a parcel is lost.
- Use clear, accurate photos and descriptions, and pack items so they arrive undamaged.
- Replace damaged or faulty items quickly, and refund promptly when you owe it. See Australian Consumer Law refunds.
- Show a clear return policy that's easy to find. See our refund policy template.
- If a double charge happens, refund it straight away and tell the customer before they call their bank.
Many chargebacks start as an unanswered message
Shopify lists responding to customers quickly as one of the best ways to keep your chargeback rate low. Paperflower puts your Instagram and Facebook comments and DMs, TikTok and support email in one list with the customer's Shopify order. On Standard, delivery problems, damaged items and complaints are sorted into what needs a person, with a reply drafted from the order and tracking, so 'where's my parcel?' doesn't sit long enough to become a dispute. Having every conversation in one place also makes it easier to find what a customer said, and when, if you need it as evidence. See how it works with Shopify.
How Paperflower is different
Buying Intent and Opportunity Score
Every conversation gets a score so the people ready to buy come first. You see who to reply to now, and who can wait.
Shopify context in every draft
Order status, shipping and product details are pulled in automatically, so drafts are right the first time and private order details never go out in public.
You stay in control
AI drafts are on and auto-send is off by default. Complaints are escalated to you. Refunds and cancellations always need a human.
Simple pricing
Paperflower starts free with 100 customer interactions a month, no card needed: every message in one list, and you write the replies. AI sorting, reply drafts and spam hiding come with Standard, which is A$47 a month for 3,000 customer interactions, with a 7-day free trial. Human replies are always free. See all plans.
Built for AU and NZ brands
Local time zones, local shipping questions, and support from people who know the market.
Frequently asked questions
A chargeback is when a customer disputes a card payment with their bank and the bank takes the money back from the business, usually with a fee. The business can send evidence, and the card company decides who wins.
You choose to give a refund when a customer asks you. A chargeback is the customer's bank taking the money back, plus a fee, and it counts towards your chargeback rate.
Usually 7 to 21 days; Shopify shows the exact deadline on the chargeback. The card company can then take up to 75 days to decide.
Shopify lists A$25 in Australia and NZ$20 in New Zealand for Shopify Payments. The fee is returned if you win the chargeback.
No. Once the bank or card company rules, the decision is final, and Shopify can't overturn it.
Not unless you turn that on. By default it drafts a reply and you approve it. You can switch on auto-send for simple, safe questions once you trust the drafts.
Instagram, Facebook and TikTok comments and DMs, support email through Gmail or Google Workspace, and Shopify for order details.
Yes. The Free plan is the basics: 100 customer interactions a month in one list, no card needed, and you write each reply. Standard adds AI sorting, reply drafts and spam hiding, and comes with a 7-day free trial. You can cancel any time. Compare plans.
Start Paperflower free
Connect Instagram, Facebook, email and Shopify in a few minutes. On Standard, AI sorts every message and drafts every reply, you stay in control, and nothing is sent without your say-so unless you switch that on. Free puts every message in one list for you to answer.