Overview of the chargeback and inquiry process

When a cardholder has an issue with a charge on their credit card, they can contact their bank to dispute the charge. The bank then makes a chargeback or inquiry.

Chargebacks and inquiries follow a similar process, but an inquiry doesn't take money from you during the time the inquiry is under investigation. Chargebacks, however, take the disputed amount and an additional chargeback fee immediately when the chargeback is requested. If the chargeback is resolved in your favor, then the disputed amount is returned to you.

Caution

Shopify isn't liable for chargebacks that occur when using the Shopify platform. Shopify isn't involved in the decision making of chargeback outcomes.

Chargeback process

Review the following common process for a chargeback:

1. The cardholder disputes a credit card charge with their bank.
2. The cardholder's bank sends a chargeback request to the credit card company, and takes the disputed amount and a chargeback fee from you.
3. The credit card company asks you for evidence that the charge was valid.
4. You gather evidence to figure out whether the charge was valid and add the evidence to the chargeback response. Learn more about adding additional evidence.
5. After you complete your chargeback response, you forward it to the credit card company by clicking Submit response.
6. The credit card company reviews the evidence. The review can take up to 75 days after the response is submitted.
7. The credit card company resolves the chargeback.

If you win the chargeback, then the cardholder's bank returns the disputed amount to you, and Shopify might refund you the chargeback fee depending on your country or region. If the chargeback is a partial win, then the cardholder's bank returns some of the disputed amount to you, and Shopify still might refund you the chargeback fee. If the cardholder wins the chargeback, then the disputed amount and the fee isn't returned to you.

Note

When a customer's payment method is located in a different country or region than your store, the chargeback amount is subject to exchange rates at the time of the chargeback. In these cases, you might notice small adjustments to cover any exchange rate fluctuation. These adjustments are separate from the chargeback fee, and can either be more or less than what was originally deducted.

Chargeback fee

When a bank sends you a chargeback, they also charge you a processing fee. If the chargeback is resolved in your favor, then Shopify might refund this fee depending on your country or region. The following list provides a breakdown of the processing fee by country or region, and whether the fee is refunded when the chargeback is resolved in your favor:

Table of Shopify Payments countries and regions with their associated fees and whether they're refunded when the chargeback is won.

Country or region	Chargeback Fee	Fee refunded if chargeback won?
Australia	$25 AUD	✔
Austria	€15 EUR	✔
Belgium	€15 EUR	✔
Canada	$15 CAD or $15 USD, based on payout currency	✔
Czechia	€15 EUR or 400 CZK (Czech koruna), based on payout currency	✔
Denmark	€15 EUR or 115 DKK (Danish kroner), based on payout currency	✔
Finland	€15 EUR	✔
France	€15 EUR	✔
Germany	€15 EUR	✔
Hong Kong SAR	$85 HKD (Hong Kong dollars)	✔
Ireland	€15 EUR + 23% Value added tax (VAT)	✔
Italy	€15 EUR	✔
Japan	¥1,300 JPY	✔
Netherlands	€15 EUR	✔
New Zealand	$20 NZD (New Zealand dollars)	✔
Portugal	€15 EUR	✔
Romania	€15 EUR or 75 RON (Romanian lei), based on payout currency	✔
Singapore	$15 SGD (Singaporean dollars)	✔
Spain	€15 EUR	✔
Sweden	€15 EUR or 150 SEK (Swedish kroner), based on payout currency	✔
Switzerland	€15 EUR or 15 CHF (Swiss francs), based on payout currency	✔
United Kingdom	£10 GBP	✔
United States	$15 USD	✔

Inquiry process

Review the following common process for an inquiry:

1. The cardholder disputes a charge with their bank.
2. The cardholder's bank sends an inquiry request to the credit card company. The credit card company doesn't take the disputed amount from you.
3. The credit card company asks you for evidence that the charge was valid.
4. You gather evidence to figure out whether the charge was valid and add the evidence to the inquiry response. Learn more about adding additional evidence.
5. After you complete your inquiry response, you forward it to the credit card company by clicking Submit response.
6. The credit card company reviews the evidence. The review usually takes 65 to 75 days after the transaction is made. In some cases, the review can take longer than 75 days.
7. The credit card company resolves the inquiry.

If the inquiry is closed in your favor, then no money is taken. If the cardholder's inquiry is closed in their favor, then the credit card company might proceed with a full chargeback and take the disputed amount, plus the additional chargeback fee.

Insufficient funds with Shopify Payments

If you're using Shopify Payments and you encounter a situation where your payout lacks sufficient funds for a return, then the outcome varies depending on your store's location:

• Austria, Australia, Belgium, Canada, Czechia, Denmark, Finland, Germany, Ireland, Italy, Netherlands, New Zealand, Portugal, Spain, Sweden, Switzerland, United Kingdom, United States: The balance required for the refund will be debited from your bank account. This debit will occur on a day outside your regular payout schedule.
• All other countries: The remaining amount needed for the refund will be deducted from subsequent payouts until the refunded amount is fully covered.

Failed debit attempts with Shopify Payments

If the initial debit attempt fails, then a second attempt will be made after 3 business days. If this reattempt also fails, then you will need to change your Shopify Payments bank account or repay the negative balance manually.