Reasons for a chargeback or inquiry

The type of evidence that you should send to the credit card company to resolve a chargeback or inquiry depends on the reason that the customer gives for the chargeback or inquiry. A customer might dispute a charge for one of the following reasons:

Learn more about adding additional evidence when resolving chargebacks.

Fraudulent

The chargeback is marked as Fraudulent if the cardholder didn’t authorize the charge. This is the most common reason for a chargeback and can happen if the card was stolen.

To deal with a fraudulent charge, you can try to contact the customer who placed the order. The customer might have forgotten about the purchase, or the purchase might have been made by a spouse, friend, or family member. If the customer agrees that the charge was justified, then you should tell them to contact their bank and say that they want to drop the chargeback. You should still submit evidence to the credit card company, including the statement where the customer said they would drop the charge.

If you think that the customer is mistaken or not telling the truth, then you should submit the following evidence to the credit card company:

The date and time that the order was fulfilled
The billing information that the customer used
The IP address and country used for the order
Shipping and tracking information for the order

Credit card companies can reverse funds for stolen cards after orders are fulfilled. Shopify helps you to gather evidence for any disputed charges. However, the decision to reverse funds is made by the bank that issued the credit card, not by Shopify. Shopify doesn't cover charge reversals from banks.

Unrecognized

The chargeback is marked as Unrecognized when the customer doesn’t recognize the merchant name or location on their credit card statement.

To deal with an unrecognized charge, you should try to contact the customer. Sometimes the customer might have forgotten about the purchase, or the purchase might have been made by a spouse, friend, or family member. If the customer agrees that the charge was justified, then you should tell them to contact their bank and say that they want to drop the chargeback.

You should still submit evidence to the credit card company, including the statement where the customer said they would drop the charge. You could include some of the following pieces of evidence:

The date and time that you fulfilled the order
The billing information that the customer used
The IP address and country used for the order
Shipping and tracking information for the order

Duplicate

The chargeback is marked as Duplicate when the customer believes that you charged them twice for the same product or service.

If you didn't charge your customer twice, then you should try to get in touch with them. You can explain to them that the two charges were for separate products or services. If the customer agrees that the charge was justified, then you should tell them to contact their bank and say that they want to drop the chargeback.

If the customer doesn't drop the chargeback or inquiry after you talk to them, then you need to submit evidence that the two charges were for separate products or services. You could include some of the following pieces of evidence:

An explanation of the reason for the two charges
Receipts that prove that the two charges were for different products or services
Any communication with the customer where you let them know about the two charges

If you did charge your customer twice for the same product or service, then you have to accept the chargeback.

Subscription canceled

The chargeback is marked as Subscription canceled if the customer believes that you charged them for a subscription after it should have been canceled. It can also mean that the customer expected a reminder before each recurring charge but didn’t receive one.

To resolve the chargeback, you should get in touch with your customer. It's possible that you can explain the misunderstanding, or come to an agreement with the customer. If you come to an agreement, then you should tell the customer to contact their bank and say that they want to drop the chargeback. You should also send evidence of this conversation to the credit card company. Refer to Resolve a chargeback canceled by the customer.

If you think the that customer didn't cancel the subscription before the charge, then you should submit evidence to the credit card company that proves that the customer canceled their subscription after the last charge. You could include some of the following pieces of evidence:

Your subscription cancellation policy
Any emails or notifications sent to the customer about their cancellation
An explanation of when and where the customer was informed of the cancellation policy
For a digital product or service: an activity log that proves that the customer accessed the product or service after the date when they said they canceled their subscription

If you did charge your customer after they canceled their subscription, then you have to accept the chargeback.

Product not received

The chargeback is marked as Product not received if the customer believes that they did not receive the goods or services they purchased.

You should try to get in touch with the customer first to figure out the problem. If you can resolve the problem with your customer, then you should tell the customer to contact their bank and say that they want to drop the chargeback. You should also include evidence that the customer agreed to drop the chargeback in the response you send to the credit card company. Refer to Resolve a chargeback canceled by the customer.

If you can't resolve the issue with your customer, then you should submit evidence to the credit card company that proves that the customer received the product or service before the chargeback was made. You could include some of the following pieces of evidence:

The date and time that you fulfilled the order
The billing information that the customer used
Shipping and tracking information for the order
For a digital product or service: an activity log that proves that the customer accessed the product or service

Product unacceptable

The chargeback is marked as Product unacceptable if the customer feels that the product was received but was defective, damaged, or not as described.

Contact your customer. If you can resolve the problem with the customer, then you should tell the customer to contact their bank and say that they want to drop the chargeback. You should also send evidence to the credit card company that the customer agreed to drop the charge. Refer to Resolve a chargeback canceled by the customer.

If the customer didn't try to return the product or cancel the service before the chargeback was made, or if you provided the customer with a replacement product or service, then send evidence of that as well.

Whether you resolve the issue with the customer or not, you should still send any relevant evidence to the credit card company. You could include some of the following pieces of evidence:

The date and time that you fulfilled the order
The billing information that the customer used
Shipping and tracking information for the order
Descriptions or pictures of the products from your store that prove that they were as described

Credit not processed

The chargeback is marked as Credit not processed if the customer informed you that the purchased product was returned or that the transaction with you was canceled, but you have not yet refunded or credited the customer.

Contact your customer. You can't issue a refund after a chargeback has been made, but you might be able to explain the situation or figure out another way to solve the problem. If the customer asked for an inquiry, then you can issue a refund. If you can resolve the problem with the customer, then you should tell the customer to contact their bank and say that they want to drop the chargeback or inquiry. You should also send evidence to the credit card company that the customer agreed to drop the chargeback. Refer to Resolve a chargeback canceled by the customer.

If you can't resolve the issue, and you think that the chargeback isn't valid, then you should send evidence to the credit card company that you either gave the customer a refund before the chargeback or inquiry was made, or that the customer was not entitled to a refund. You could include some of the following pieces of evidence:

Your refund and return policies
An explanation of when and where the customer was informed of the refund policy
Any emails or notifications you sent to the customer about the refund
An explanation of why the customer was not entitled to a refund

General

A chargeback is marked as General if it doesn't fit into one of the other categories.

To resolve a general chargeback, you should start by trying to contact the customer so you can figure out what the problem is. If you can solve the problem for the customer, then you should tell the customer to contact their bank and say that they want to cancel the chargeback. You should then request that they provide you with a copy of the chargeback withdrawal letter from their bank. After you have evidence of the customer requesting to cancel the chargeback, you will need to submit this letter as evidence in the Chargeback response form on the order. Refer to Resolve a chargeback canceled by the customer.

If the customer doesn't want to drop the chargeback, then you should send evidence to the credit card company that the charge was valid. You could include some of the following pieces of evidence:

Details about the products that were ordered
The date and time that the order was fulfilled
The customer's billing information
The customer's IP address and country
Emails or other communication you had with the customer
USPS/FedEx/UPS or other online tracking or shipping confirmations
Proof of prior refunds or replacement shipments