AFCA complaints and chargebacks: what sellers should expect

You win the chargeback, and the customer complains to AFCA anyway. Or you lose, and the customer says their bank let them down. Either way, an ombudsman is now looking at a dispute that started on your store. Here is what that means for you.

AFCA complaints and chargebacks involve the customer and their bank, not you. AFCA checks whether the bank made reasonable efforts to claim a chargeback, and it cannot review the card scheme's decision. For sellers the effect is indirect: expect information requests, possible re-disputes and a long timeline, and keep your records.

This guide to AFCA complaints and chargebacks is for you if:

A customer has told you they will complain to AFCA about a chargeback.
You have won or lost a dispute and want to know what could happen next.
You want to know whether, and how, a seller can use AFCA too.

Last updated: 10 October 2026. Written by the ChargeFix team. Reviewed against sources on 10 October 2026.

The 30-second answer (TL;DR)

AFCA, the Australian Financial Complaints Authority, handles complaints from customers about their bank or credit union. Its chargebacks factsheet is written for cardholders, and the complaint is against the bank, not the merchant.

AFCA says it checks whether the bank made reasonable efforts to submit and follow up the chargeback, used the most appropriate reason and properly challenged the merchant's response.

AFCA says it cannot review the card scheme's decision, because the schemes are not AFCA members. The scheme's decision is final.

AFCA says a final chargeback decision can take up to eight weeks after the chargeback is raised. That sits alongside Shopify's bank decision window of up to 75 days after you submit.

If the bank complied with its obligations, AFCA will not require a refund. If it did not, AFCA may require the bank to compensate the customer. The factsheet does not say what, if anything, flows back to a merchant.

Your best protection is a clear, labelled response and complete records, kept for at least 12 months.

Quick note: AFCA's chargebacks factsheet is aimed at consumers. It does not describe any process for merchants, and we found no source on whether or how AFCA contacts a merchant. Where this guide goes beyond the factsheet, it says so, and it gives you practical steps instead of guesses.

AFCA complaints and chargebacks at a glance

Question	Short answer	Source
Who complains to AFCA?	The customer, about their bank or credit union	AFCA factsheet
Is the merchant the target?	No, the complaint is about the bank	AFCA factsheet
What does AFCA check?	Reasonable efforts, appropriate reason, and whether the merchant's response was properly challenged	AFCA factsheet
Can AFCA overturn the scheme decision?	No	AFCA factsheet
How long can a chargeback decision take?	Up to eight weeks after it is raised	AFCA factsheet
Does AFCA cover merchant complaints?	Not described on the factsheet	AFCA factsheet

What is AFCA, and why does it matter to a seller?

AFCA is the independent complaints body for Australian financial services. It matters to sellers because customers can take a rejected chargeback to AFCA, and the way a bank handled your response can come up. AFCA describes its service as fair, free and independent dispute resolution for financial complaints.

AFCA's chargebacks factsheet explains that a chargeback is a request by the customer's bank to the card scheme to reverse a charge, usually where the customer paid for goods or services they did not receive. It says chargebacks are not always available, and that each scheme has its own rules. Our post on how chargebacks work in Australia puts that in the context of the Shopify process, and Consumer Affairs Victoria says claims that were wrongly rejected can go to AFCA.

Is the seller part of an AFCA complaint?

Not as the respondent in an AFCA complaint. The factsheet says the complaint is about the customer's bank or credit union and whether it met its chargeback obligations. The merchant's bank is part of the chargeback chain, since it can accept or reject the claim, but the page does not describe AFCA contacting merchants. We found no source that says AFCA can order a merchant to pay. If a customer tells you they have made an AFCA complaint, that is information, not a summons.

What does AFCA not do?

It does not give financial or legal advice, as its own chat terms say. It does not review the card scheme's decision. And it does not require a refund where the bank complied with its obligations, where no chargeback right existed or where the dispute was raised after the deadline. That last point matters to you, because a customer who is out of time usually gets nowhere with AFCA.

What do customers have to do before AFCA gets involved?

AFCA says customers should contact the merchant first and ask for a refund or a reasonable alternative, such as a voucher or rescheduled booking. Their bank may ask how they tried to resolve the matter, and not doing so may affect their ability to request a chargeback. Your replies to complaints are therefore part of the story if an AFCA chargeback review follows.

The factsheet says working with the merchant is often the quickest way to resolve an issue. It also says that if the merchant offers an alternative the customer does not want, they may still be able to raise a chargeback, depending on their purchase terms, scheme rules and government regulations. So an offer is not a shield, but it is part of the record. Save every message. Our post on what to say when a customer threatens a chargeback gives you the wording.

Customer step	What AFCA says	What it means for you
Contact the merchant first	Ask for a refund or reasonable alternative	Your reply is on the record
Tell the bank how they tried	The bank may ask	Your messages may be requested
Raise it with the bank in time	Do not wait too long or you could miss the deadline	Old disputes can be out of time
Give the bank full details	What they bought, attempts to contact the merchant	They may describe your replies

What about change of mind and other weak claims?

The factsheet says there is no valid chargeback right if the customer simply decides not to use the goods or services, and that they should check the merchant's cancellation policy. It says there may be a right if the merchant cancels or cannot provide the service, or if a refundable booking is not refunded. A clear policy shown at checkout helps here. Our post on change of mind refunds in Australia explains how to write one.

What does AFCA check in AFCA complaints and chargebacks?

AFCA considers whether the bank made reasonable efforts to submit and follow up the chargeback, whether it used the most appropriate reason, and whether the merchant's response was properly challenged. It looks at the bank's conduct, not the merchant's. It cannot review the scheme's decision.

The factsheet also sets out what the bank must do. A bank must claim a chargeback on the customer's behalf if a right exists under the scheme rules and the customer has shown they paid for goods or services they did not receive. It must identify the appropriate reason, such as goods or services not provided or credit not processed, and take reasonable steps to pursue the claim. Banks that are scheme members must pursue chargebacks under contract law, and banks that subscribe to the Banking Code of Practice must pursue them where a right exists and the dispute was raised within the scheme timeframes.

AFCA looks at	Why it matters to a seller
Whether the bank claimed a chargeback where a right existed	A claim can reach you even when you think the customer is wrong
Whether it used the most appropriate reason	The reason shapes the evidence you need
Whether the bank challenged your response properly	Your response may be tested, so make it clear
Whether it followed up reasonably	The case can be pushed back to you

What happens if the bank failed in an AFCA chargeback complaint?

AFCA says that if the bank failed its obligations, it may require the bank to compensate the customer, possibly by paying the refund amount the customer should have received. The factsheet frames this as the bank's obligation to the customer. It does not say whether the bank can recover that money from the merchant, and we could not find a source that does. Treat that as an open question and talk to your acquirer or processor if it arises.

What should a seller expect from AFCA complaints and chargebacks?

For AFCA complaints and chargebacks, expect indirect effects only: a longer timeline, a possible request for more information through your processor, and a chance that a won dispute is re-opened. Nothing on AFCA's factsheet says it contacts merchants or orders them to pay. Treat any AFCA complaint as a reason to tighten your records and your replies.

The chain runs from the customer to their bank to the card scheme and back. Shopify's resolution page says that if you win a chargeback, the customer's bank can dispute the same transaction again, and that winning the first one does not guarantee you keep the amount. Shopify's overview says you then get a new deadline to respond. AFCA's factsheet adds that the merchant's bank can accept or reject a chargeback, that the scheme decides if the banks disagree, and that the decision is final. So the places where a complaint can touch you are the re-dispute and the information requests that come before it.

Stage	Who acts	What a seller may see
Customer contacts you	Customer	A complaint to answer; keep the thread
Customer contacts their bank	Customer	Nothing yet
Bank checks for a chargeback right	Customer's bank	Nothing yet
Chargeback raised	Banks and scheme	A dispute notice in Shopify, usually 7 to 21 days to respond
Banks disagree	Card scheme	The scheme's decision, which is final
Customer complains to AFCA	AFCA and the bank	Possibly a request for records; the factsheet does not say
Bank re-disputes a win	Customer's bank	A new deadline in Shopify

Illustration: a re-dispute on an A$260 order

An A$260 order costs you A$105 in goods and A$12 in postage. Processing at 1.7% plus 30 cents, per Shopify's Australian pricing page checked on 10 October 2026, is A$4.72 (1.7% of A$260 is A$4.42, plus 30 cents). You win the first chargeback, then the bank disputes again. The fee used is the reported A$25, which we could not find on Shopify's Australian pages. We assume one fee applies, though we could not confirm whether a second fee would be charged on a re-dispute.

Outcome	Calculation	Net result
Win the first dispute and the re-dispute, fee returned	A$260 less A$105, A$12 and A$4.72	plus A$138.28
Win the first, lose the re-dispute	minus A$105, A$12, A$4.72 and A$25	minus A$146.72

The gap between winning both and losing the re-dispute is A$285.00, the A$260 sale plus the A$25 fee. A seller who deleted the evidence after the first win has nothing to send the second time. Shopify's overview and resolution pages describe the new deadline, so keep the files until you are sure the matter is closed.

Why does a won dispute not always end the story?

Because the customer's route does not end with the first decision. A customer who is unhappy can ask their bank to look again, the bank can dispute the transaction again under the scheme rules, or the customer can lodge an AFCA complaint about the bank's handling. None of these automatically changes your Shopify result, but each can mean more requests for your records. Treat a win as a pause and not as a finish line, and keep your files until the retention date you have set.

Illustration: a dated chain from order to a complaint

An A$380 order is placed on Tuesday 2 February 2027 with delivery expected on Tuesday 9 February. It does not arrive. The customer writes to you on Friday 19 February 2027 and gets no reply. They go to their bank on Monday 1 March 2027. The dispute reaches you on Monday 8 March 2027.

Date	Event
Tuesday 2 February 2027	Order placed
Tuesday 9 February 2027	Expected delivery
Friday 19 February 2027	Customer contacts you; no reply
Monday 1 March 2027	Customer raises it with their bank
Monday 8 March 2027	Dispute notice reaches you
Friday 12 March 2027	You submit evidence
Monday 15 to Monday 29 March 2027	Response window, 7 to 21 days
Monday 26 April 2027	Up to eight weeks after 1 March, AFCA's stated outer limit for a final chargeback decision
Wednesday 26 May 2027	Latest bank decision on Shopify's timetable, 75 days after 12 March

The goods cost A$150, postage was A$15 and processing was A$6.76 (1.7% of A$380 is A$6.46, plus 30 cents). Win with the fee returned and you are plus A$208.24. Lose and you are minus A$196.76, including the reported A$25 fee. Notice the second row: the customer wrote to you on 19 February and nobody replied. AFCA says a customer should contact the merchant first and that the bank may ask how they tried to resolve it. A reply on 19 February would have been the cheapest step in this timeline.

The eight-week and 75-day figures come from two different sources and describe different clocks, so they do not line up neatly. The first is AFCA's description of how long the scheme can take after a chargeback is raised, and the second is Shopify's description of how long the bank can take after you submit. Plan for the longer of the two.

How does the quality of your response affect an AFCA complaint?

In an AFCA chargeback review, a clear response makes it easier for the bank to challenge your evidence properly or to accept it. AFCA looks at whether the merchant's response was properly challenged, so a vague or unlabelled response gives the bank less to work with. Labelled, factual evidence puts the case on solid ground whatever happens later.

Shopify's chargeback-process page says to lead with the strongest proof, label each item with its type, date and what it shows, and use screenshots rather than links. Those habits also help if a complaint later asks what you submitted. Our posts on responding to a Shopify Payments dispute and chargeback response templates show how.

Habit	Why it helps later
Label each file by type, date and what it shows	Anyone reading the file understands it quickly
Lead with the strongest proof	The key fact is not buried
Keep a copy of the whole submission	You can show exactly what was sent
Keep the customer thread	It shows you responded and offered a remedy
Stay neutral in tone	No accusation can be quoted back
Save the bank and Shopify notices	A timeline you can reconstruct

What should you say if the customer mentions AFCA?

Stay calm and helpful. The customer has a right to complain, and AFCA is free for them. Do not discourage them or imply a penalty. Offer the remedy you can, ask them to give you the chance first, and note the date. Here is a template.

TEMPLATE: THE CUSTOMER MENTIONS AFCA

Hi [FIRST NAME],

I understand you may take this further, and that is your right.
I'd still like to resolve it directly if I can.

Here is what I can do: [REMEDY] by [DATE]. I'll also keep a record
of our messages and the order so that your bank has everything it
needs if you do go to them.

If you would like to talk, my number is [NUMBER].

Kind regards,
[NAME]

The template does not argue and does not say what AFCA will do. We cannot give legal advice, and neither can AFCA, so it only commits you to what you control.

How should you prepare for AFCA complaints and chargebacks before one happens?

Prepare three things: a fast, polite reply routine for complaints, a complete evidence file for every order, and a retention rule that keeps both for at least 12 months. AFCA complaints and chargebacks take months to play out, so the work you do at the sale and at the first complaint decides how easy the later steps are.

The preparation is the same habits we recommend for any dispute, because a bank asking about a customer's attempts to resolve the issue is asking about your replies. Our post on what to save at fulfilment covers the order file, and chargeback time limits in Australia covers how long to keep it. A short routine also helps when a customer says they will go to AFCA: you can reply the same day with an offer and a record.

When	What to do	Why it helps in an AFCA chargeback review
At the sale	Save the order, policy and promised delivery date	Shows what was agreed
At dispatch	Save the label, tracking and packing photo	Shows what was sent and when
At the first complaint	Reply within one business day with a remedy	Shows the customer's attempt to resolve it
When a dispute arrives	Respond by the due date with labelled evidence	Gives the bank something to challenge properly or accept
After a win	Keep the files for at least 12 months	A re-dispute gets a new deadline
If a complaint is mentioned	Stay neutral and keep the thread	Nothing you wrote can be quoted against you

AFCA-READY RECORD CHECKLIST (per order)

[ ] Order confirmation and policy as shown at checkout
[ ] Promised delivery date written on the order
[ ] Packing photo, label and tracking number
[ ] Delivery proof (tracking capture, photo or signature)
[ ] Every customer message, saved with dates
[ ] What you offered the customer and when
[ ] Refund or replacement confirmations
[ ] The Shopify dispute notice and your submitted response
[ ] The outcome and the date it was decided
[ ] Retention date: sale date plus 12 months, or later if a
    dispute is still open

Can a seller complain to AFCA too?

Possibly, for the right kind of complaint. NAB's merchant guide says that if you believe a case is unresolved, you can contact NAB Resolve and then AFCA if needed. That suggests a business with a bank merchant facility has a route about its own bank. For a Shopify Payments merchant, we could not verify whether AFCA can consider a complaint about Shopify or its processor.

Treat the question as open. If you have a merchant facility with an Australian bank, ask the bank for its complaints process and its AFCA membership. If you use Shopify Payments, start with Shopify Support, and ask in writing who handles complaints and whether an external body is available. AFCA's factsheet does not describe any merchant process, so it is not a source for this point.

Seller situation	First step	Possible escalation
Bank merchant facility (for example NAB)	The bank's complaints team	NAB's guide names NAB Resolve, then AFCA
Shopify Payments	Shopify Support	Unverified; ask Shopify in writing
Third-party gateway	The gateway's complaints process	Depends on the provider

How do the ePayments Code and consumer law fit in?

The ASIC ePayments Code covers unauthorised electronic transactions for consumers who deal with a bank that subscribes to it. ASIC describes the Code as presently voluntary, and it excludes facilities used for business purposes. It sets investigation periods of 21 and 45 days, but scheme timeframes replace those where the bank resolves a dispute through scheme rules.

Where the bank resolves through the scheme, the Code says that if the matter is not resolved in 60 days, the bank must give reasons and updates every two months, with an expected decision date. For a seller the point is simple: these rules govern how the customer's bank deals with the customer, not you. Consumer law runs separately. The ACCC says a major problem entitles the customer to a refund whatever the card dispute outcome, as our post on major vs minor failures explains.

What's different for Australian merchants?

Australian sellers deal with a complaints system, the Banking Code of Practice and AFCA, that sits between the customer and their bank. The practical effects for you are a long timeline, possible re-disputes and a premium on records. The gaps in the sources are the merchant side and the Shopify side.

AFCA is for the customer's complaint against their bank. It checks reasonable efforts and cannot review the scheme decision.
The merchant side is not described. The factsheet does not say how, or whether, AFCA contacts merchants.
Banks subscribed to the Banking Code of Practice must pursue chargebacks where a right exists and the dispute is in time. That can make claims more likely to reach you.
Time limits are long. Consumer Affairs Victoria says 45 to 120 days on a 2023 page, and NAB lists 210 days for eftpos. See chargeback time limits in Australia.
The fee is unconfirmed. Shopify's Australian pricing page lists no dispute fee. Third parties report A$25, and NAB charges its own merchants A$25.
Re-disputes are possible. Shopify says a bank can dispute a won transaction again, with a new deadline.
Keep records for 12 months. That covers the longest limit plus the response and decision periods.
Other methods differ. Afterpay and PayPal use separate systems. See Afterpay and Zip disputes and PayPal disputes.

What mistakes do sellers make around AFCA complaints and chargebacks?

The most common mistake in AFCA complaints and chargebacks is ignoring the customer's first contact. The next is deleting records after a win, then discouraging a customer from complaining, then assuming AFCA will contact you or can be ignored. Each makes a later step harder.

Not replying to the first complaint. AFCA says customers should contact the merchant first, so your silence becomes part of the record.
Deleting evidence after a win. The bank can dispute the transaction again with a new deadline.
Discouraging a complaint. It escalates the matter and is not your call.
Assuming AFCA will order you to pay. We found no source that says so, and the factsheet does not describe a merchant process.
Assuming AFCA can reverse a scheme decision. It cannot.
Arguing about the customer's motives. Keep to facts.
Missing the Shopify deadline while waiting on a complaint. The due date does not move.
Relying on one source. The factsheet is undated and consumer-facing, so verify with your processor.

Frequently asked questions

What is AFCA and what does it have to do with chargebacks?

AFCA is the Australian Financial Complaints Authority, an independent complaints body. Customers can complain to it if they think their bank did not meet its chargeback obligations. It checks the bank's conduct, not the merchant's, and it cannot review the card scheme's decision.

Can a customer complain to AFCA about a Shopify store?

A customer can complain to AFCA about their bank or credit union. The factsheet describes complaints about the bank's chargeback handling, not about merchants. We found no source that describes a complaint about a Shopify store being handled by AFCA, so treat a store as outside that process.

Will AFCA contact me as the seller?

The factsheet does not say. It describes the customer's bank, the merchant's bank and the card scheme, and AFCA's review of the customer's bank. If you are contacted, it is more likely to come through your processor or acquirer. Keep your records ready and reply promptly to any request.

Can AFCA make me pay?

We found no source that says so. AFCA says it may require the customer's bank to compensate the customer if the bank failed its obligations. The factsheet does not say whether the bank can recover that from a merchant, so ask your acquirer or processor if it arises.

How long does an AFCA chargeback matter take?

AFCA's factsheet says a final chargeback decision can take up to eight weeks after the chargeback is raised. That is the scheme process, and it sits beside Shopify's window of up to 75 days after you submit. The factsheet does not give a timeframe for an AFCA complaint itself.

Can AFCA overturn a chargeback I won?

AFCA says it cannot review the card scheme's decision. But Shopify says the customer's bank can dispute a won transaction again, with a new deadline, so a win is not always final. Keep your evidence until you are sure the matter is closed.

What if the customer is out of time?

AFCA says it will not require a refund where the dispute was raised after the deadline, or no chargeback right existed. Scheme limits vary, and AFCA says they usually run from the date the goods were expected, the date the customer learned they would not arrive, or the purchase date.

Can I complain to AFCA as a seller?

Possibly. NAB's merchant guide says you can contact NAB Resolve and then AFCA if a case is unresolved, which suggests a route for business customers of a bank. For Shopify Payments we could not verify whether AFCA covers a complaint about Shopify, so ask Shopify Support in writing.

How can I reduce the risk of problems later?

Reply to complaints within one business day, keep labelled evidence, submit before the due date, and keep records for at least 12 months. AFCA looks at whether the customer's bank challenged your response properly, so a clear, factual response is your best protection.

Start free trial with ChargeFix

ChargeFix helps Australian Shopify merchants turn their order, delivery, message and policy records into a ready response. You review and file it, or let Auto mode handle them. If you want your records ready in case AFCA complaints and chargebacks ever reach your store, you can try it on a free trial first.

Start free trial

AFCA complaints and chargebacks: what sellers should expect