Understanding Shopify Balance disputes

When managing transactions in your Shopify Balance account, you might need to understand the difference between a dispute and a refund. Learn more about when you're eligible to dispute a transaction.

Understanding the difference between disputes and refunds

A dispute arises when you identify an error or issue with a specific charge on your account, declaring that either the billing was incorrect, or the vendor failed to meet the agreed terms of service. This can involve cases of incorrect billing amounts, dissatisfaction with the quality of goods or services, or non-delivery of goods or services. The dispute process involves formally disputing the charge through Shopify Balance (card issuer), who then investigates and mediates with the vendor to resolve the issue. Learn more about the different types of Shopify Balance card disputes, and Shopify Balance Automated Clearing House (ACH) disputes.

A refund is a request made directly to the vendor for the return of money on a purchase, typically due to your change of plans, dissatisfaction with the purchase, or a decision to return the goods based on the return policy. Unlike disputes, refunds don't involve the card issuer in the initial stages and are handled directly between you and the seller.

Understanding different types of card disputes

Different card dispute types require specific documentation and are suitable for various situations. If your dispute is in relation to an ACH debit transaction, then you can learn more about eligible ACH dispute types.

Review the following table to learn more about common Shopify Balance card dispute types, required documentation, and examples of acceptable and unacceptable disputes.

Types of Shopify Balance card disputes
Dispute typeDescriptionRequired documentationAcceptable dispute examplesUnacceptable dispute examples
FraudulentCharges made without the cardholder's consent.
  • Explanation (Required): Description of the transaction and why it is disputed.
  • Additional documentation: Relevant documents, such as card statements and return shipping tracking, in PDF or JPEG format.
Unrecognized transaction appearing on statement.Dispute on a transaction you forgot about.
Not receivedGoods or services paid for but not delivered as agreed.
  • Product type (Required)
  • Product description (Required)
  • Expected at (Required)
  • Explanation: Specify if the product arrived late.
  • Additional documentation: Screenshots of emails or text messages.
Paid for a product that was never delivered.Dispute for a delay when the delivery has occurred.
DuplicateSame transaction charged more than one time.
  • Submit exactly one of the following:
    • Cash receipt: Receipt of the cash transaction.
    • Check image: Image of both sides of the check.
    • Original transaction: Token showing the first transaction.
Two identical charges appearing on a statement.Charges for two similar transactions made on purpose.
Merchandise not as describedItems received are different from what was described at the time of purchase.
  • Received at (Required)
  • Return status (Required): Outcome of return attempt.
  • Returned at (Required)
  • Return description (Required): Details of the return process.
  • Explanation (Required)
  • Additional documentation: Screenshots of correspondence.
Item received is a different color, model, or size than what was ordered.Dispute due to buyer's remorse or change of mind after receiving item as described.
Service not as describedService provided is different from what was purchased.
  • Received at (Required)
  • Canceled at (Required)
  • Cancellation reason (Required)
  • Explanation (Required)
  • Additional documentation: Screenshots of correspondence.
Service significantly deviates from advertised quality or content.Service complaints based on subjective experiences not promised by merchant.
CanceledCharges for services or goods canceled according to merchant policies.
  • Product type (Required)
  • Product description (Required)
  • Expected at (Required)
  • Cancellation policy compliance (Required)
  • Canceled at (Required)
  • Cancellation reason (Required)
  • Returned at
  • Return status
  • Explanation
  • Additional documentation: Screenshots of correspondence
Charged after order was canceled in accordance with the cancellation policy.Dispute after canceling the service or product outside the cancellation policy window.
OtherDisputes that don't fit into the standard categories.
  • Product type (Required)
  • Product description (Required)
  • Explanation (Required)
  • Additional documentation: Screenshots of correspondence
Unexpected charges without a clear description or category.Not applicable as the other dispute category covers a broad spectrum, each case needs specific review.
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