How to Respond to a Shopify Chargeback

What is a Shopify chargeback?

A chargeback is when a cardholder disputes a transaction with their bank. The bank reverses the charge and the merchant must respond with evidence to reclaim the funds. Shopify Payments processes chargebacks through Stripe. If you use a third-party payment gateway, the process goes through that gateway instead.

Chargebacks are separate from refunds. A refund is voluntary: you choose to return the customer's money. A chargeback is forced by the bank, regardless of whether you agree with the dispute. Once the bank initiates a chargeback, the funds are held or reversed immediately.

Chargebacks carry a dispute fee, typically around $15 USD, regardless of outcome. Losing a chargeback means losing both the sale amount and the fee. Winning the dispute means the funds are returned to you, though the fee may or may not be refunded depending on your processor.

How long do you have to respond?

Shopify notifies you by email when a chargeback is filed. The response window is typically 7 to 10 calendar days, though this varies by card network and payment processor. Visa and Mastercard have slightly different timelines.

Missing the deadline means automatic loss. The bank rules in the cardholder's favour by default. Act the day you receive the chargeback notification.

1. Read the chargeback reason code carefully.
2. Log the response deadline in your calendar immediately.
3. Begin collecting evidence the same day.
4. Write and submit your response before the deadline.

Understand the chargeback reason code first

Every chargeback has a reason code assigned by the card network. Your evidence must directly address the specific reason code. A strong response for item not received looks very different from a response for an unauthorised transaction.

Common reason codes in ecommerce:

• Unauthorised transaction: the customer denies making the purchase or claims their card was used without permission.
• Item not received: the customer claims the package never arrived.
• Item not as described: the customer claims the product was different from your listing or significantly different from what was advertised.
• Subscription cancelled: a recurring charge processed after the customer claims to have cancelled.
• Credit not processed: the customer claims a refund was promised but never issued.
• Duplicate transaction: the customer claims they were charged twice for the same order.

Find the reason code in your Shopify Payments dashboard or in the email notification. Read it carefully before gathering evidence. Submitting evidence that does not address the reason code is one of the most common mistakes merchants make.

What evidence to gather before writing your response

The strength of your response depends entirely on the quality and completeness of your evidence. Gather everything before you start writing.

Core evidence for all chargebacks:

• Order confirmation showing customer name, email, delivery address, items ordered, and order total.
• Payment confirmation showing the charge matched the order.
• Shipping confirmation and tracking number.
• Carrier tracking history showing the delivery scan with date, time, and delivery address.
• Proof of delivery: carrier confirmation, delivery photo, or signature if applicable.
• Your shipping policy and return policy (URL and full text).
• Customer communication history: order confirmation email, shipping notification email, any support tickets or chat logs.

Additional evidence for unauthorised transaction disputes:

• IP address of the order at the time of purchase (available from your Shopify order details).
• Device fingerprint if your platform captures it.
• AVS (address verification) and CVV match results from your payment processor.
• Previous order history if the same customer has ordered from you before using the same card or email.

Additional evidence for item not as described disputes:

• Product photos showing the item as it was listed.
• Screenshots of your product listing description at the time of purchase.
• Any customer messages about the item before the dispute was filed.

How to write your chargeback response

Be factual, not emotional. Banks review hundreds of disputes. A clear, professional response with organised evidence is more effective than a lengthy personal appeal.

Structure your response in this order:

1. Restate the facts: order date, amount, product, customer details.
2. Address the reason code directly. Explain specifically why the dispute does not apply.
3. Present your evidence in order, referencing each piece clearly.
4. Reference your policies (shipping and returns).
5. Close with a clear request for the dispute to be resolved in your favour.

Keep the response under two pages. Use headings or numbered sections so the reviewer can navigate it quickly. Attach evidence as clearly labelled files.

Common mistakes that cost merchants

Most chargeback losses are avoidable. These are the mistakes that come up again and again:

• Missing the response deadline. There is no extension. Set the deadline in your calendar the moment you receive the notification.
• Not addressing the specific reason code. Submitting generic evidence that does not address the dispute type is a fast path to losing.
• Submitting disorganised or unlabelled evidence. A reviewer who cannot follow your evidence pack will default to the cardholder.
• Responding emotionally or attacking the customer. Keep the tone professional and factual throughout.
• Omitting your shipping and return policies. Always include these, even if they seem obvious.
• Relying on the carrier delivery scan alone without showing it matches the order address. You must connect the delivery scan to the specific order.
• Not including customer communication history. Your emails and support tickets show you fulfilled your obligations as a merchant.

Chargeback response checklist