Chargeback vs inquiry on Shopify Payments

Two emails can look almost identical. One says a customer has disputed a payment. The other says the same thing, with a different word in the subject line. One has already taken money from your payout. The other has not touched it yet. If you cannot tell which is which, you will either panic over the wrong one or relax over the one that is costing you right now.

Chargeback vs inquiry is the first question to answer on any Shopify Payments dispute. A chargeback takes the amount and the fee immediately. An inquiry takes neither at first, and it gives you a window to settle things cheaply. This guide shows how to tell them apart, what each one costs an Australian store, and what to do next in each case.

This guide is for you if:

You have a dispute notification and are not sure whether it is a chargeback or an inquiry.
You want to know whether a refund will end the dispute or just waste money.
You want to understand why Shopify treats the two so differently, and why the difference affects your cash flow.

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

The 30-second answer (TL;DR)

A chargeback is a dispute where the funds are taken from you straight away: the amount and the fee.
An inquiry is an earlier, lighter dispute where neither the amount nor the fee is taken at first.
A full refund ends an inquiry. A partial refund does not.
An open chargeback cannot be refunded. You respond with evidence, or you accept it.
Both give you a response deadline, usually 7 to 21 days after filing, and both can take a long time for the bank to decide: up to 75 days for a chargeback and usually 65 to 75 days for an inquiry.
Fees are not returned if you lose or accept. If you win a chargeback, Shopify returns the amount, and the fee may also be returned, depending on country.
When in doubt, read the label on the notification and the order in your admin, then act on that label.

Quick note: In the chargeback vs inquiry question, an inquiry is the cheapest moment in the whole dispute process. Nothing has been taken yet, a full refund can close it, and you still have your evidence. If you can see a customer who is simply unhappy, this is the point to settle it.

Chargeback vs inquiry at a glance

	Chargeback	Inquiry
Money taken at filing	Amount and fee, immediately	Neither, at first
Can you refund the customer?	No, not while it is open	Yes
Does a full refund end it?	Not applicable	Yes
Does a partial refund end it?	Not applicable	No
Evidence response	Yes, by the due date	Yes, by the due date
Typical bank decision time	Up to 75 days after you submit	Usually 65 to 75 days
Fee if you lose or accept	Fee not returned	Not applicable if never taken
Counts in your chargeback rate	Yes	Shopify's monitoring page says all disputes opened on eligible transactions count

Chargeback vs inquiry: what is the difference?

The difference is timing and money. According to Shopify's Help Center, a chargeback is a dispute where the amount and the fee are taken immediately. An inquiry is a dispute where neither is taken at first.

In both cases, the customer has contacted their card issuer and questioned a payment. What the issuer does next decides the label. An inquiry is a question from the issuer, asking for information about a transaction. A chargeback is a formal reversal of the payment, with the money moved back to the cardholder while the case is reviewed.

You can think of it this way. An inquiry says "we have a question about this payment". A chargeback says "we have taken this payment back, and you can try to win it back".

That is why the first sign to look for is the money. If the amount has gone from your payout, you are dealing with a chargeback. If it has not, you are probably dealing with an inquiry. The label on the notification and the order in your Shopify admin tells you for certain.

Why does Shopify use two different names?

The two names match two different stages in the card networks' own process. The network separates a request for information from a formal reversal, and Shopify mirrors that so merchants know what has happened to their money. We found no Shopify page that explains the reason for the naming, so treat this as a description of how the pieces fit rather than a quote.

Chargeback vs inquiry: how do you tell which one you have?

Check these four things, in this order.

The notification. Shopify's email names the type of dispute. Read the subject line and the first paragraph.
The order in your admin. The order shows the dispute and its status. The statuses Shopify uses are Open, Submitted, Won, Lost and Resolved.
Your payout. If the disputed amount and a fee have left it, it is a chargeback.
The refund button. For an open chargeback, you cannot refund. For an inquiry, you can.

Always confirm in your admin, not just from the email. Emails go to the store contact email under Settings, then Store details, even for paused or closed stores, and a forwarded or old email can be out of date. If you suspect the message is not genuine, open your admin directly instead of clicking its links. Our guide to the first 24 hours after a chargeback email covers verification step by step.

What does a Shopify inquiry or chargeback cost you?

The cost of a Shopify Payments dispute differs most in the first days, then converges if you lose.

Illustration: a A$180 order, both ways

Take a A$180 order and a A$25 fee. These are assumed numbers.

As a chargeback:

Event	Cash effect
Customer disputes, bank files chargeback	A$180 + A$25 = A$205 taken from your next payout
You submit evidence and win	A$180 returned, and the fee may be returned depending on country
You submit evidence and lose	A$205 gone for good, plus the product
You accept	A$205 gone, no further work

As an inquiry:

Event	Cash effect
Customer questions the payment, issuer opens an inquiry	Nothing taken at first
You fully refund	A$180 refunded, inquiry ends, no dispute fee
You respond with evidence and win	Nothing lost
You respond and lose	Treat it as a loss and check the order in your admin for what is taken

The first lesson is plain. If the same dispute can be an inquiry, a full refund of A$180 is cheaper than losing a chargeback of A$205, and it keeps the problem out of your records. The second lesson is that this window may be short, so act at once.

The A$25 figure is the fee confirmed by third parties and in Shopify's NDRP page. Check your own admin for the current regular chargeback fee, because we did not open Shopify's own fee table.

What about the processing fees on a refund?

Refunds are not always free. Shopify's international fees page says card fees and conversion fees are not returned on refunds. For a domestic Australian sale, check what your plan returns, because we could not verify the details for every plan. A refund can therefore cost a little more than the order value, but it is still less than a lost dispute.

Can you refund a Shopify inquiry?

Yes, and often you should. Shopify's pages are clear that a full refund ends an inquiry, while a partial refund does not.

That second part trips people up. If a customer is disputing A$180 and you refund A$100 as a goodwill gesture, the inquiry stays open. The issuer is still waiting for an answer about the other A$80. You can end up refunding part and still losing the rest.

Rule of thumb for any Shopify inquiry: if you decide to refund an inquiry, refund the full amount, or do not refund and respond instead.

Can you refund an open chargeback?

No. Shopify says an open chargeback cannot be refunded. The money has already been taken by the bank. If you refund the customer separately at that point, you risk paying twice: once through the chargeback, and once through the refund. Shopify's guidance on credit not processed adds that refunds generally cannot be issued after a chargeback, but can for an inquiry.

So for a chargeback you have two moves, respond with evidence or accept. If the customer would be happy to drop the dispute, you can ask them to contact their bank and request a withdrawal letter, which Shopify says takes 30 to 90 days or more. A screenshot of a message does not count, and there is no way to speed it up for Amex or Visa Fraudulent.

What are the deadlines for a Shopify Payments dispute?

Both types of Shopify Payments dispute carry a response deadline, and a missed response deadline closes the cheap options first. Shopify's pages say the due date is shown on the dispute, usually 7 to 21 days after filing, in the store's timezone, and ends at 11:59 PM if no time is shown.

Shopify Payments submits automatically on the due date with whatever information it has collected. You can edit evidence until then. Once you click Submit now, it is locked. Our chargeback deadline guide covers the clocks in detail.

Does the clock start when you see the email?

No. It starts from when the dispute is filed. If you read the email a day or two late, that time is already gone. This matters more for inquiries, because the cheap refund option is easy to miss if you do not check your admin often.

How long does the bank take to decide?

Shopify says the issuer can take up to 75 days after you submit for a chargeback. For inquiries, the usual range is 65 to 75 days and can run longer. You cannot appeal the decision.

The wait feels long, but it does not change what you should do now. Your job is to submit the best evidence you can, once, before the due date.

Should you refund or respond to an inquiry?

This is the core decision for a Shopify inquiry. Use this simple grid.

Situation	Best move	Why
Genuine problem: lost parcel, wrong item, faulty product	Full refund	You owe the customer, and it ends the inquiry cheaply
Customer changed their mind, outside your policy	Respond with evidence, or refund as goodwill	Change of mind is not covered by the consumer guarantees, but honour any policy you offer
Order delivered, proof strong, customer unreachable	Respond with evidence	Your records answer the question
Possible fraud, customer not real	Respond with evidence	A refund may reward fraud and could be paid twice
Customer wants a partial refund	Agree a full outcome first	A partial refund does not end the inquiry

For an inquiry caused by a faulty or wrongly described product, the ACCC says you must offer a repair, replacement or refund when a consumer guarantee fails, and you cannot send the customer to the manufacturer. For a major problem the customer chooses a refund or replacement. For a minor one you can repair first. "No refund" terms do not override these rights. Our post on whether to accept or fight a dispute explains how to weigh these cases.

Illustration: the 48-hour inquiry

A customer in Perth disputes a A$120 order. The notice is an inquiry. Delivery shows as complete, but the customer says the parcel was empty. You have nothing to prove otherwise.

Day 1: you read the notice, confirm it is an inquiry in your admin, and message the customer.
Day 2: the customer replies with a photo of the opened box. You offer a full refund and process it.
Result: the inquiry ends. You lose A$120 of revenue and no dispute fee. If you had waited and it became a chargeback, you could have lost A$120 plus the fee, and added a dispute to your rate.

This is an illustration only. Your facts will differ.

What happens to your chargeback rate?

Shopify's chargeback monitoring page says the rate counts all disputes customers open on eligible Shopify Payments transactions. It does not say that refunded inquiries are removed, and we could not verify that they are. Winning a dispute does not remove it from the rate.

Even so, resolving things early is better than losing later. A refund costs you one sale. A lost chargeback costs a sale, a fee and time, and still counts. Our guide to the Shopify chargeback rate and account health shows the lines that matter and how to stay under them.

Chargeback vs inquiry: how each plays out on the calendar

The clearest way to see the difference between a chargeback and an inquiry is to follow the same A$180 order through both paths on a calendar. Every date below is an illustration, with the dispute filed on Monday 12 October 2026 and the weekdays checked.

Illustration: the chargeback path

Date	What happens	Your money
Mon 12 Oct 2026	Bank files the chargeback	A$180 and a A$25 fee are taken from your next payout
Tue 13 Oct	You open the order, confirm the type and the reason	No change
Wed 14 to Thu 15 Oct	You collect tracking, proof of delivery and messages	No change
Fri 16 Oct	You click Submit now, ahead of a 19 October due date	No change
Mon 19 Oct	Original due date (7 days). Evidence is locked	No change
From 16 Oct	Issuer reviews. Decision can take up to 75 days, so by Wed 30 Dec 2026	Won: A$180 returned, fee may be returned. Lost: A$205 gone

Illustration: the inquiry path

Date	What happens	Your money
Mon 12 Oct 2026	Issuer opens an inquiry	Nothing taken at first
Tue 13 Oct	You confirm the type, read the customer's story, and message them	Nothing taken
Wed 14 Oct	Customer confirms the parcel was damaged	Nothing taken
Wed 14 Oct	You issue a full refund	A$180 refunded, inquiry ends
If you respond instead	You submit evidence before the due date and wait for the issuer, usually 65 to 75 days	Nothing taken unless the issuer decides against you

The two paths start on the same day with the same customer and the same order. The inquiry gives you a choice that the chargeback has already closed. That is the single most useful fact in this guide, and it is the reason to check the label within hours of the notice.

Chargeback vs inquiry: four worked scenarios

Real disputes are rarely tidy. These four scenarios show how the decision changes with the facts. All numbers are assumed.

Scenario 1: the delayed parcel (inquiry)

A customer ordered a A$95 item. It is running a week late, and they were never told. They contact their bank, and you receive an inquiry.

Move: message the customer, apologise, give a firm date, and offer a full refund if they would rather cancel. If they choose the refund, issue the full amount to end the inquiry. If the parcel arrives and they are happy, ask them to tell their bank, and still submit evidence if the due date comes before they do.

Scenario 2: the delivered parcel (chargeback)

A customer's A$240 order shows as delivered with a photo at the door. They file a chargeback for product not received. A$240 and a A$25 fee have left your payout.

Move: respond with evidence. Use the delivered status, the address match, the photo, and any messages. You cannot refund an open chargeback, so there is no cheap exit, and the evidence is your tool. A$265 is at stake, and a pack takes under an hour.

Scenario 3: the faulty item (inquiry or chargeback)

A customer says a A$150 item stopped working after two weeks and the store refused to help because of a "no refunds" line in the terms.

Move: this is a consumer guarantee issue. The ACCC says a failed guarantee means you must offer a repair, replacement or refund, and "no refund" terms do not override consumer rights. If it is an inquiry, refund in full or arrange the remedy. If it is already a chargeback, consider accepting rather than spending time on a case you may not be able to defend. Our post on accepting or fighting a dispute explains how to weigh it.

Scenario 4: the unrecognised charge (either)

A customer sees a payment they do not recognise. It is your store, under a descriptor that looks unfamiliar.

Move: contact the customer and show them the order. Shopify's guidance for unrecognized disputes is that contacting the customer first may resolve it. If they confirm the purchase, ask them to withdraw the dispute with their bank, and still submit evidence in case the withdrawal takes time.

What should you say to the customer in each case?

The right message depends on whether money has already moved.

For an inquiry: offering a full refund

Hi [name], we can see your bank has queried this payment for order [number]. We are sorry the order did not work out. We would like to put it right, and we are happy to refund the full amount of A$[amount] to your card. Reply "yes" and we will process it today. Please also let your bank know once you see the refund.

For a chargeback: asking for a withdrawal

Hi [name], we can see your bank has disputed order [number]. If the issue is now sorted, you can ask your bank to withdraw the dispute and send you a withdrawal letter. Please forward us the letter, because a screenshot of your message will not be accepted. If you would like to talk it through, reply here and we will help.

Be honest about the timing. Shopify says a bank withdrawal letter takes 30 to 90 days or more, so submit your own evidence by the due date in the meantime.

For a dispute where you believe the customer is mistaken

Hi [name], we have checked order [number]. Our records show it was delivered on [date] to [address], with tracking [number]. If you did not receive it, please tell us what you can see on your side, such as a neighbour or a safe place, and we will work with the carrier. We would like to resolve this directly.

Keep each message short, polite and factual. These messages may become part of your evidence, so write as if the reviewer will read them.

Does the type of dispute change your evidence?

The type changes the stakes and the options. The reason decides the evidence. A product not received claim needs delivery proof whether it is a chargeback or an inquiry. The difference is that for an inquiry, you may never need to build the pack, because a refund can settle it first.

That is why the right order is: read the type, then the reason, then the facts, then choose. People who start with the evidence can spend an hour building a pack for a dispute that a one line refund would have closed.

What if you do nothing?

For both types, Shopify Payments submits on the due date with the information it has collected, so something is filed. That is rarely enough for a case that depends on a message, a photo or a policy.

For a chargeback, doing nothing means a weak response and a likely loss, with the amount and fee gone. For an inquiry, doing nothing means a response is still filed, but you miss the cheap exit of a full refund.

Neither outcome is a disaster, but both are avoidable with a few minutes' attention.

What evidence does each need?

The evidence is the same in kind, and the reason on the dispute decides what to include. Shopify lists eight reasons: fraudulent, unrecognized, duplicate, subscription canceled, product not received, product unacceptable, credit not processed and general.

Product not received: fulfilment date and time, billing information, shipping and tracking.
Product unacceptable: product descriptions and photos, tracking, and proof the customer did not try to return the item or that a replacement was sent.
Credit not processed: refund and return policies, proof the customer was informed, emails, or proof of an earlier refund.
Fraudulent and unrecognized: fulfilment date and time, billing information, IP and country, shipping and tracking.

Use the chargeback evidence checklist to build the pack. Files must be PDF, JPEG or PNG, up to 2 MB each and 4 MB in total, with one file per evidence type.

A decision path you can follow in five minutes

Open the order in your admin. Note the type, the reason, the amount and the due date.
Check your payout. Has the amount and fee gone? That confirms a chargeback.
Read the story. Is the customer's claim true? Check tracking, messages and the product.
Pick the move.
- Inquiry and the claim is true: refund in full.
- Inquiry and the claim is false or unproven: respond with evidence.
- Chargeback and the claim is true: consider accepting.
- Chargeback and the claim is false or unproven: respond with evidence.
Set a submit-by date two business days before the due date.
Write down what you decided and why, in one line, so you can review it later.

What's different for Australian merchants?

The fee and the amount. Shopify's NDRP page lists A$25 for Australia for auto-resolved disputes. Check your own admin for the regular chargeback fee, and remember it is not returned if you lose or accept.

Bank timelines run in the background. NAB's merchant page gives cardholders up to 120 days for Visa and Mastercard disputes, varying by reason, and 210 days for eftpos. That is the customer's side. Consumer Affairs Victoria lists limits from 45 to 120 days by provider. Your Shopify deadline is separate and much shorter.

Cardholders are encouraged to contact you first. CHOICE advises customers to try the merchant before their bank, and Consumer Affairs Victoria points customers to AFCA if their bank rejects a chargeback request. A customer who ends up in an inquiry has often already tried you once. Reading your earlier messages with them is time well spent.

Not every payment can be charged back. Consumer Affairs Victoria says chargebacks are not available for cash, transfers, cheques, direct debit or BPAY. Card payments through Shopify Payments are eligible.

Consumer law sets the baseline. For faulty goods, the ACCC says the customer does not need original packaging, you may ask for proof of purchase, and you must pay collection costs for bulky items and reimburse reasonable return costs when a fault is confirmed. If no fault is found, you may charge collection and inspection costs, if you gave a reasonable estimate in advance.

Common mistakes

Treating them as the same

An inquiry has a cheap exit. A chargeback does not. Check the type before you decide.

Refunding part of an inquiry

A partial refund does not end it. You can be out of pocket and still disputed.

Refunding an open chargeback

You cannot, and trying to settle outside the process risks paying twice. Respond or accept.

Forgetting the fee

The fee is lost if you lose or accept. Include it when you decide whether to fight.

Waiting to look

Both types have due dates. The cheap options close first.

Assuming a win fixes the rate

A won dispute still counts. Prevention is the lasting fix.

Skipping the customer

Many disputes start because a customer could not reach you. Reply first, then decide.

What we could not verify

Whether and when an inquiry escalates to a chargeback. The pages we reviewed describe the two separately.
Whether a refunded inquiry is removed from your chargeback rate.
Shopify's own regular chargeback fee table for Australia. Check your admin.
How weekends and public holidays affect due dates.
Whether any extension to the due date is possible.

Where a decision depends on one of these, ask Shopify Support and keep their reply.

Frequently asked questions

What is the difference between a chargeback and an inquiry on Shopify?

A chargeback takes the disputed amount and the fee from your payout straight away. An inquiry is an earlier question from the card issuer, and nothing is taken at first. Both have response deadlines, and both end with a decision from the bank, but an inquiry can be closed with a full refund.

Does a refund end a Shopify inquiry?

A full refund ends an inquiry. A partial refund does not, so the issuer still waits for an answer about the rest. If you plan to refund, refund the full amount. If you do not want to refund, respond with evidence before the due date shown on the dispute.

Can I refund a customer during a chargeback?

No. Shopify says an open chargeback cannot be refunded, because the bank has already taken the money. You can respond with evidence or accept the dispute. If the customer agrees to drop it, they can ask their bank for a withdrawal letter, which takes 30 to 90 days or more.

Which costs more, a chargeback or an inquiry?

A chargeback costs more at the start, because the amount and a fee leave your payout immediately. An inquiry takes nothing at first, and a full refund can close it without a dispute fee. If you lose or accept a chargeback, the fee is not returned.

How long do I have to respond to an inquiry?

The due date is shown on the dispute, usually 7 to 21 days after filing, in your store's timezone. If no time is shown it ends at 11:59 PM. Shopify Payments submits automatically on that date, so edit your evidence before then. The bank can then take 65 to 75 days or more.

Do inquiries count toward my chargeback rate?

Shopify's monitoring page says the rate counts all disputes customers open on eligible Shopify Payments transactions. It does not say whether a refunded inquiry is removed, and we could not confirm that. Winning a dispute does not remove it from the rate either, so fewer disputes is the real goal.

Should I fight an inquiry or just refund?

Refund in full if the customer's claim is true, such as a lost parcel or a faulty item, because it ends the inquiry cheaply. Respond with evidence if you can prove delivery or suspect fraud. For faulty goods in Australia, remember your duties under consumer guarantees and avoid relying on "no refund" terms.

What happens if I ignore a chargeback or inquiry?

Shopify Payments submits on the due date with the information it collected, so a response is filed, but it is often too thin to win. For a chargeback you will likely lose the amount and the fee. For an inquiry you lose the chance to end it cheaply with a full refund.

Can an inquiry turn into a chargeback?

Card networks have separate stages, and it is possible for a disputed payment to move on, but the Shopify pages we reviewed describe chargebacks and inquiries separately and do not set out the rules for escalation. Treat an inquiry as urgent, and check Shopify's overview page or Support if you need certainty.

Start free trial with ChargeFix

ChargeFix helps Australian Shopify merchants spot disputes early and turn their order, delivery and message records into a ready response. You review and file it, or let Auto mode handle them. If you want to settle the chargeback vs inquiry question at a glance and respond in time, you can try it on a free trial first.

Start free trial