Change of mind refunds in Australia: what you owe

A customer emails three days after delivery. Nothing is wrong with the jacket. It is the right size, it arrived on time, it looks exactly like the photos. They just do not want it any more. What do you owe them? If you read the ACCC page quickly you might think the answer is "nothing", and in law that is close to right. In practice it is more complicated, and the gap between the law and the practice is where many disputes start.

A change of mind refund is a refund for an item that works and matches its description, where the customer simply decided they did not want it. In Australia the consumer guarantees do not require you to give one. But if you promise one in your policy, the ACCC says you must honour it, and if you are careless about how you describe the difference between a change of mind and a fault, you can end up refusing a refund you actually owed. This guide explains where the line sits, how to write a change-of-mind policy that protects your margin, and what to do when a change-of-mind customer takes the matter to their bank.

This guide is for you if:

You sell on Shopify in Australia and want to decide whether to offer change of mind refunds at all.
You already offer returns and want to tighten the wording so it holds up in a dispute.
A customer has asked for a refund on a working item and you are not sure whether you can say no.

Last updated: 9 October 2026. Written by the ChargeFix team. Reviewed against sources on 9 October 2026.

The 30-second answer (TL;DR)

The ACCC says change of mind is not covered by the consumer guarantees. You are not required to refund an item that works and matches its description just because the customer changed their mind.
If you do offer a change of mind refund or return policy, the ACCC says you must honour it.
"No refund" signs and terms do not override consumer rights, and relying on them for faulty goods is illegal. Your change of mind rule must not swallow the fault rule.
If the item has a fault, is unsafe, or is significantly different from its description, it is not a change of mind. See major vs minor failure.
Customers do not need the original packaging for a fault claim. For change of mind, you can set the conditions you will accept, provided you state them clearly before purchase.
Refund to the original payment method where you can. Issue it before a dispute is filed, because an open chargeback cannot be refunded.
A bad return policy shows up as "credit not processed" disputes. A clear one is your best evidence.

Quick note: Offering a generous change of mind policy is a commercial choice, not a legal duty. Many stores offer one because it lifts conversion and reduces disputes. The legal duty starts only when you make the promise, and it applies to the promise as written, so write only what you are willing to honour.

Change of mind vs fault at a glance

	Change of mind	Fault or misdescription
Covered by the consumer guarantees?	No	Yes
Must you refund?	Only if your own policy says so	Depends on major or minor failure
Who sets the conditions?	You, if stated clearly	The law, not your policy
Can "no refund" wording apply?	Yes, to change of mind only	No, it cannot override consumer rights
Who pays return postage?	You decide and state it	You reimburse reasonable costs if a fault is confirmed
Original packaging required?	You may require it for change of mind	No, for faults
Typical dispute reason	Credit not processed	Product unacceptable

Do you have to give change of mind refunds in Australia?

No. The ACCC's repair, replace, refund, cancel page says plainly that a change of mind is not covered by the consumer guarantees. A customer who bought the wrong size, found it cheaper elsewhere, or simply does not like it has no automatic right to a refund from you.

That is the short answer, but three qualifications matter in real life.

First, the right to refuse applies only to a genuine change of mind. If the item has a problem, the guarantees apply and your policy cannot override them. A customer who says "I changed my mind" because they do not realise the item is faulty still has the rights that go with the fault. If the facts show a fault, treat it as one.

Second, once you offer something, you are bound by it. The ACCC says a change of mind policy you offer must be honoured. A promise of "30 day returns, no questions asked" is a promise. You can limit it with clear conditions, but you cannot quietly narrow it after the sale.

Third, the commercial reality is different from the legal minimum. Customers expect to be able to return things bought online. Not offering any change of mind option is lawful, but it can cost you sales and, if the customer is determined, it can cost you a dispute. We come back to the numbers below.

What does the ACCC say about a policy you choose to offer?

The ACCC's position is simple. If you offer a refund, return or exchange for change of mind, you must honour it. That means you cannot advertise 14 day returns and then refuse a return on day 10 because the customer is "just changing their mind". It also means conditions must be real and stated. If you want the item unworn, unused, in original packaging and with tags attached, say so on the policy page and, ideally, at checkout.

What the ACCC page we read does not do is prescribe the window, the format or the cost split for a voluntary policy. Those are your decisions. We could not verify whether there is a minimum window for online sales or any cooling-off rule that applies to ordinary online purchases, and we do not claim one exists. Check with the ACCC or a lawyer if you operate in a regulated category.

What should a good policy say?

Cover six things, in plain language:

The window. For example, "within 30 days of delivery". Say whether it runs from the delivery date or the order date. From delivery is fairer and easier to prove.
The condition. Unused, unworn, in original packaging, with tags. If you require this, say so.
The remedy. Refund to the original payment method, store credit, or exchange. Say which.
The cost. Who pays return postage, and whether you deduct anything.
The exclusions. Items you will not take back for change of mind, such as hygiene products or personalised items. Make clear that the exclusion does not apply to faults.
The process. How to start a return, what you need from the customer, and how long a refund takes.

A policy that does these six things is easy to follow, easy to defend, and gives a card issuer something concrete to read.

How do you tell a change of mind refund request from a fault claim?

This is the practical question. Customers rarely say "major failure". They say "it's not what I expected" or "it doesn't suit me". Your team has to sort the message into the right bucket before choosing a reply.

Ask four questions in order:

Is the item unsafe? If yes, it is not a change of mind.
Is it significantly different from the description or sample? A different material, missing component or wrong size on the label is a misdescription.
Does it have a fault, or several smaller faults? Check photos if the customer sent any.
Does it work and match what you said? If yes, and the customer simply does not want it, it is a change of mind.

If you are unsure at question 2 or 3, treat it as a fault until you know otherwise. The cost of a wrongly refused fault is higher than the cost of a wrongly accepted return. Our guide to major and minor failures gives a five minute process.

The grey area: "it doesn't look like the photo"

Colour and size complaints sit in the middle. A small shade variation on a screen is probably not a misdescription. A garment labelled medium that fits like a small might be. A material listed as leather that turns out to be vinyl certainly is. Put colour and size guidance on the product page, so that when a customer says "it's not what I expected" you can point to what you said and, if the item matches it, treat the return as a change of mind.

Why does your return policy matter more than the law here?

Because the law is silent, your return policy is the rule. It decides what the customer expects, what your team says, and what a card issuer reads if a dispute arrives. A return policy that is short, specific and visible does three jobs at once: it sets expectations before the sale, it gives staff a script, and it becomes evidence afterwards.

A vague return policy does the opposite. "Returns accepted at our discretion" invites argument, and "satisfaction guaranteed" can be read as a promise you did not mean to make. Review your return policy once a quarter, check that every sentence is something you would honour on a bad day, and date each revision so you can show which version applied to an order.

What does a change of mind refund cost you?

Before you decide how generous to be, put numbers on it. The figures below are illustrations with assumed values, not benchmarks.

Illustration: an A$120 jacket returned for change of mind

Item	If you accept the return	If you refuse and the customer disputes
Refund to customer	A$120.00	A$120.00 if you lose
Return postage	A$12.00 (assumed, customer or you)	A$0.00
Dispute fee	A$0.00	A$25.00
Your time	About 10 minutes	About 45 minutes on evidence
Stock back on shelf	Yes, if resaleable	No, the customer keeps it
Chargeback rate impact	None	Counts toward your rate

If the returned jacket is in resaleable condition, accepting the return costs you the postage and a little time, and you keep the stock. If you refuse and lose the dispute, you lose the A$120, pay the A$25 fee and do not get the jacket back. Even if you win, you have spent time and counted a dispute toward your chargeback rate.

The Shopify dispute fee in Australia is A$25 per our research, and whether it is returned on a win is ambiguous in Shopify's own pages. Treat it as a cost. Shopify's international fees page also says card and conversion fees are not returned on refunds, so a refund is not free either. We could not verify how those apply to every domestic card, so check your own statements.

When a restrictive policy is worth it

A tight or no change of mind policy can make sense when:

the product is custom, personalised or made to order
margins are thin and returns are rarely resaleable
the product is perishable or hygiene-related

Even then, the policy should say clearly that faults are handled separately under the consumer guarantees. A line like "We do not accept change of mind returns on custom orders. If your order arrives faulty or not as described, we will repair, replace or refund as the law requires" does both jobs.

When a generous policy pays for itself

A generous policy tends to help when:

you sell clothing, footwear or other fit-dependent items
your average order value is high enough that hesitation is costly
you compete with stores that already offer easy returns

We do not have verified conversion data for Australian Shopify stores, so treat this as a commercial judgement, not a finding.

Should a change of mind refund be money, store credit or an exchange?

All three are lawful options for change of mind, because the choice is yours. The issue is clarity.

Refund to the original payment method. The cleanest option. It matches what the customer expects, and it removes the "credit not processed" reason from the table.

Store credit. Lawful for change of mind if you say so up front. It is not a lawful substitute for a refund when the customer is entitled to a remedy for a major failure. If a customer has a fault claim and you offer only store credit, you may be refusing a remedy you owe. Keep the two separate in the policy.

Exchange. Good for size and colour. Say what happens if the replacement is out of stock. The customer should not be left without a remedy because you cannot supply the exchange.

Whichever you choose, put it in the policy, repeat it in the return confirmation email and record it on the order.

Can you charge a restocking fee or refuse opened items?

For change of mind, you can generally set conditions that are stated clearly, because the law does not set them for you. A requirement for unworn items with tags is a normal condition. Whether and how much you can charge as a restocking fee is a different question, and we could not verify a rule on it, so we do not give a number. If you charge one, state it plainly before purchase and apply it consistently.

For faults, the position is different. The ACCC says customers do not need original packaging, and you must reimburse reasonable return costs if a fault is confirmed. If no fault is found, you may charge collection and inspection costs with a reasonable estimate given in advance. Do not apply a change of mind restocking fee to a fault claim.

How do you word the policy so it holds up?

Plain language beats legal language. Here is a model structure you can adapt. It is illustrative, not legal advice.

Returns and refunds

Faulty or not as described. If your item is faulty, unsafe or significantly different from how we described it, you are entitled to a repair, replacement or refund under the Australian Consumer Law. Contact us and we will sort it out. You do not need the original packaging.

Changed your mind. You can return unused items in original condition within 30 days of delivery for a refund to your original payment method, less return postage. Items marked as custom or personalised cannot be returned for change of mind.

How to start a return. Email us your order number and the reason. We will reply within one business day with instructions.

The 30 days is yours to decide. What matters is the structure: faults first, change of mind second, process last. Our guide to writing a refund policy for a Shopify store gives a fuller template, and our post on whether you can say "no refunds" shows wording to avoid.

Where should the policy appear?

Everywhere a customer might look before buying: a dedicated policy page, the footer, the product page near the add to cart button, and the checkout. The more places it appears, the more credible it is as evidence that the customer was informed. Shopify's chargeback reasons page, for credit not processed, suggests evidence of refund and return policies and proof the customer was informed, so the policy is only useful if you can show it was visible.

We could not verify Shopify's current admin steps for adding policy links to checkout, so check your own admin.

What happens when a change of mind customer files a dispute?

The most common dispute reason is "credit not processed", where the customer says they returned an item or cancelled and did not get their money back. Shopify's page for that reason suggests you provide refund and return policies, proof the customer was informed, emails, an explanation, or proof of an earlier refund.

Two Shopify rules shape your options:

A full refund ends an inquiry. A partial refund does not.
An open chargeback cannot be refunded. You respond or accept.

So the decision point is the inquiry stage. If you are going to refund anyway, do it then. Our post on chargeback vs inquiry explains the difference.

Illustration: the same A$120 return, two paths

Step	Path A: refund at inquiry	Path B: refuse, chargeback filed
Customer asks for refund	Day 1	Day 1
Your reply	Offer return, refund on receipt	"No change of mind returns"
Customer files with bank	Not needed	Day 6
Your cost if you accept	A$120 and postage, stock returned	A$120 and A$25 fee, no stock
Your cost if you fight and lose	Not applicable	A$120 and A$25 fee, plus time
Chargeback rate	Unchanged	Increases

The point is not that you must always accept a return. It is that a refusal you could not enforce at the bank costs more than the return you refused.

Can you win a change of mind dispute?

Sometimes. The strongest position is a clear, dated policy that the customer saw, plus records showing the customer did not follow it: they missed the window, returned a used item, or did not return it at all. The weakest is a vague policy or a refusal that does not match what you wrote. We cannot verify how an issuer weighs a policy against a customer's account, so do not assume a win. Consumer Affairs Victoria notes that customers whose chargeback request is rejected can go to AFCA, so a refusal does not always end the matter.

Cardholders have long windows. NAB gives cardholders up to 120 days for Visa and Mastercard disputes, varying by reason, and 210 days for eftpos. A customer can still dispute months after delivery. CHOICE reports that the Visa window can run from the expected delivery date, with a 540 day outer limit, and that a retailer can end up refunding through a chargeback even if it first refused.

If you do fight, assemble the dated policy, a screenshot of where it appeared, the order confirmation, the customer's messages and your replies, and proof of any refund or return. Files must be PDF, JPEG or PNG, up to 2 MB each and 4 MB in total, one file per evidence type, with no links. The due date is usually 7 to 21 days after filing. See the evidence checklist for the full list.

What should you say to a change of mind customer?

Tone matters more than most stores think. A courteous, specific reply stops many disputes. Here are three templates. Adjust for your policy.

When the return is within policy:

Hi [name], thanks for letting us know. You're within our 30 day return window, so we're happy to help. Please post the item back unused, with your order number, to [address]. We'll refund your original payment method within [X] business days of receiving it. If you have any trouble, just reply here.

When the window has passed:

Hi [name], thanks for getting in touch. Our change of mind returns are open for 30 days from delivery, and your order was delivered on [date], so we can't accept it as a change of mind return. If there's a fault with the item, or it isn't as we described, please tell us what's wrong and send a photo, and we'll look at it under our faulty goods process.

When you suspect it is really a fault:

Hi [name], sorry the item isn't working out. Can you tell us what's happening, and send a photo if you can? If there's a fault we'll fix it, and if you've simply changed your mind we'll explain our return options.

Notice what these do. They state the rule, they leave the door open for a fault claim, and they promise a next step. None uses "no refund". Shopify's prevention guidance says to reply quickly, and a prompt, fair reply is what stops most disputes.

What's different for Australian merchants?

Change of mind is outside the national guarantees. The ACCC page says so directly. Your policy fills the gap, and you are bound by what you write.

Fault rights cannot be contracted out of. The ACCC says "no refund" signs and terms do not override consumer rights, and relying on them for faulty goods is illegal. Keep faults and change of mind apart.

Long bank windows. NAB's windows of up to 120 days for Visa and Mastercard and 210 days for eftpos mean a return refused today can become a dispute next quarter.

Fees in A$. The dispute fee is A$25. If your chargeback rate gets high, Shopify says the consequences can include an account health notice, a reserve or NDRP enrolment, with an NDRP fee of A$25 in Australia.

Consumer routes. Customers can contact consumer protection agencies, and Consumer Affairs Victoria points to AFCA if a bank rejects a chargeback request.

Dates. Write dates in full, such as "delivered 3 October 2026", so your policy window is unambiguous.

Common mistakes

Saying "no refunds" without separating faults

The ACCC says "no refund" terms do not override consumer rights. Say "no change of mind returns" and add that faults are handled under the law.

Promising what you do not intend to honour

If your page says "30 day returns", you must honour it. Do not copy a generous policy from another store without checking you can afford it.

Offering store credit for faults

Store credit is a fine option for change of mind. It is not a substitute for a remedy you owe on a major failure.

Making customers prove too much

Requiring original packaging for a fault claim contradicts the ACCC page. For change of mind you can ask for it, but say so clearly.

Leaving the policy buried

A policy no one can find is weak evidence. Show it at checkout and on the product page.

Missing the inquiry window

A full refund ends an inquiry. Once a chargeback is open you cannot refund it. Decide early.

Not recording the reason

A one-line note on the order, such as "change of mind, within 30 days, accepted", makes later disputes easy.

What we could not verify

Whether any minimum return period or cooling-off rule applies to ordinary online purchases in Australia. We found none on the ACCC page we read.
Rules on restocking fees for change of mind returns.
Shopify's current steps for adding policy links at checkout.
How a card issuer weighs a voluntary return policy against a customer's account.
Whether the A$25 dispute fee is returned on a win, where Shopify's own pages differ.
State or territory differences and anything beyond the ACCC page of 21 July 2026.
Conversion data for Australian stores that offer generous returns.

Where a decision depends on one of these, ask a lawyer or the ACCC and keep the reply on file.

Frequently asked questions

Do I have to give a refund if the customer changed their mind?

No. The ACCC says change of mind is not covered by the consumer guarantees, so you are not required to refund a working item that matches its description. However, if you advertise a change of mind policy, you must honour it. Keep faults separate, because those are covered by the guarantees.

Can I say "no change of mind returns" on my store?

Yes, for genuine change of mind, provided you also make clear that faulty or misdescribed goods are handled under the Australian Consumer Law. The ACCC says "no refund" signs and terms do not override consumer rights, so wording that appears to cover faults is a risk. Be specific about what the rule covers.

What if my policy says 30 days and the customer asks on day 31?

For a genuine change of mind you can generally decline, because your window is part of the policy you wrote. Say so politely, restate the window and invite a fault claim if one applies. If the item turns out to be faulty, the window does not apply to the fault.

Can I refuse a return because the packaging is opened?

For change of mind, you can set a condition such as unopened or unused, if you state it clearly before purchase. For a fault, the ACCC says customers do not need original packaging. Decide first whether it is a fault, then apply the right rule.

Can I give store credit instead of a refund?

For change of mind, yes, if your policy says so clearly. For a major failure, the ACCC says the customer chooses a refund or replacement, so offering only store credit may fall short. Keep the two situations separate in your policy and in your replies.

Who pays for return postage on a change of mind return?

You decide, and you should say so in the policy. For a confirmed fault, the ACCC says you must reimburse reasonable return costs and pay collection for bulky items. If no fault is found, you may charge collection and inspection costs, with a reasonable estimate given in advance.

What if the customer disputes with their bank after I refused?

If it is an inquiry, a full refund ends it. If it is an open chargeback, you cannot refund it, so you respond or accept. A clear dated policy and records that the customer did not follow it give you the best chance. We cannot verify how an issuer weighs them.

How long can a customer dispute a change of mind purchase?

It varies. NAB gives cardholders up to 120 days for Visa and Mastercard disputes, depending on the reason, and 210 days for eftpos. CHOICE reports that the Visa window can run from the expected delivery date, with a 540 day outer limit. Assume disputes can arrive months later.

Is a customer saying the item is "not what I expected" a change of mind?

Not always. If the item is significantly different from the description, it is a misdescription and the guarantees apply. If it matches what you said and the customer simply expected something different, it is more likely a change of mind. Check the description, the photos and the item before deciding.

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