The message says "I'll just dispute it with my bank". Your stomach drops, and you want to defend yourself, quote your policy or go quiet. Do none of those. What you write next decides whether this becomes a fix or a fee.
When a customer threatens a chargeback, reply within one business day, acknowledge the problem, offer a specific next step with a date, and ask them to let you fix it before contacting their bank. Never threaten, argue or offer money to hold off a dispute. Keep every message calm and in writing.
This guide on what to say when a customer threatens a chargeback is for you if:
- A customer has just written that they will go to their bank and you want the right reply.
- You are unsure whether to refund, offer a fix or hold your ground.
- You want scripts for email, phone and public replies that you can use straight away.
Last updated: 10 October 2026. Written by the ChargeFix team. Reviewed against sources on 10 October 2026.
The 30-second answer (TL;DR)
- When a customer threatens a chargeback, it is a chance, not an attack. AFCA says cardholders should contact the merchant first and ask for a refund or reasonable alternative, so a customer who threatens a chargeback in writing is still giving you that chance.
- Reply within one business day with an apology for the problem, a clear next step and a date. Ask them to contact you before their bank.
- Match the remedy to the facts. The ACCC says a major problem entitles the customer to a full refund; a change of mind gives no automatic right unless your own policy offers one.
- A full refund on an inquiry ends it. A partial refund does not. An open chargeback cannot be refunded, so act before it opens.
- Never promise an outcome you cannot deliver, never tell a customer they have no rights, and never pay a customer to withdraw a dispute.
- Save every message. If the dispute goes ahead, your replies are evidence.
Quick note: A customer who threatens a chargeback is often frustrated at not being heard, not trying to cheat you. The threat usually means "I have not been helped yet". The scripts below are drafts you adapt, not legal advice, and none of them replaces a look at the facts of the order.
What to say at a glance
| Situation | Best first move | Risk if ignored |
|---|---|---|
| Faulty or not as described | Apologise, offer the remedy the facts support | Dispute as product unacceptable |
| Parcel late or in transit | Share tracking, give a date, offer to reship or refund | Dispute as product not received |
| Parcel delivered, customer says not received | Ask calm questions, check delivery details | Dispute as fraudulent or product not received |
| Change of mind outside your policy | Explain politely, offer what your policy allows | Dispute as credit not processed |
| Unrecognised charge | Send the order confirmation and your statement name | Dispute as unrecognized |
What should you do first when a customer threatens a chargeback?
Reply within one business day, in writing, and keep the tone calm. Acknowledge the problem, say what you will do and by when, and ask them to give you that chance before they contact their bank. AFCA says cardholders should approach the merchant first, so your reply fits what the dispute process already expects.
The first hour matters because when a customer threatens a chargeback it is often a last attempt to be heard. AFCA's chargebacks factsheet says customers should contact the merchant first and ask for a refund or a reasonable alternative, and that their bank may ask how they tried to resolve it. A prompt, helpful reply therefore helps both of you. It also creates a record. If the customer goes to the bank anyway, your message shows you tried. Our guide to how chargebacks work in Australia explains why that record matters.
Why not just point to your policy?
Because a policy quote reads as a refusal, and a refusal can be the push that starts the dispute. Your policy may be right, but the customer wants to hear what you will do for them. Lead with the next step and bring in the policy only if it helps explain it. The ACCC also says a "no refunds" policy cannot deny a customer their rights for a major problem, which our post on no refunds notices in Australia covers, so quoting it at a customer with a genuine fault can make things worse.
How fast do you need to be?
Within one business day for the first reply. That is our recommendation, not a rule. The reason is practical: customers have between about 45 and 210 days to dispute depending on the card, according to Consumer Affairs Victoria and NAB's merchant page, so time is not on their clock. It is on yours, because every day without a reply makes a dispute more likely. See chargeback time limits in Australia.
What should your first reply say?
A good first reply to a chargeback threat has five parts: thanks and acknowledgment, the specific problem in your own words, a next step with a date, a way to reach you, and a request to contact you before their bank. Keep it to about 100 words, avoid defensiveness, and do not mention fees or penalties.
| Part | What it does | Example |
|---|---|---|
| Thanks and acknowledgment | Shows you heard them | "Thanks for telling us. I'm sorry this happened." |
| The problem, restated | Shows you understood | "The jacket arrived with a broken zip." |
| The next step with a date | Gives them something to hold | "I will email a return label by 5pm today." |
| Your contact details | Makes it easy to reply | "Reply here or call [NUMBER]." |
| The request | Gives you the chance | "Please give us until [DATE] to put it right before contacting your bank." |
Here is a template for when a customer threatens a chargeback that you can adapt.
TEMPLATE A: FIRST REPLY TO A CHARGEBACK THREAT
Subject: Re: Order [NUMBER] - let's fix this
Hi [FIRST NAME],
Thanks for telling us, and I'm sorry about [PROBLEM IN ONE LINE].
I'd like to put this right quickly.
Here is what I'll do: [SPECIFIC STEP, e.g. send a replacement /
email a return label / check the courier today] by [TIME AND
DATE]. I'll message you again as soon as that is done.
If you'd rather talk, call me on [NUMBER] between [HOURS].
I'd be grateful if you could give us until [DATE] to fix this
before contacting your bank, so we can sort it faster than a
dispute would. If it is not resolved by then, I understand.
Kind regards,
[NAME]
[STORE NAME]
The last line is deliberate. "I understand" signals you will not fight their right to go to the bank, which lowers the temperature. You are not asking them to give up a right, only to give you a chance.
What should you say for each type of complaint?
When a customer threatens a chargeback, match the message to the facts: a fault, a late parcel, a delivered parcel the customer does not recognise, a change of mind or an unrecognised charge. Each calls for a different remedy and a different tone. The templates below cover the five most common. Edit the details, and check the facts first.
| Complaint | Facts to check first | Likely remedy |
|---|---|---|
| Faulty or not as described | Photos, order, listing, ACCC major or minor | Repair, replace or refund |
| Late or in transit | Tracking, carrier updates | Update, reship or refund |
| Delivered, not received | Tracking record, delivery photo, address | Ask questions, look for the parcel, then decide |
| Change of mind | Your policy and its dates | What your policy allows |
| Unrecognised charge | Statement name, order email, household | Send details and offer help |
Faulty or not as described
The ACCC says a major problem entitles the customer to choose a refund, a replacement, or to keep the product and be compensated, and that a refund means the full amount paid, normally to the original payment form. For a minor problem, you must fix it, with at least a free repair, and a replacement or refund is optional unless the fix fails. Our posts on major vs minor failures and refund policies for Shopify stores help you decide.
TEMPLATE B: FAULTY OR NOT AS DESCRIBED
Hi [FIRST NAME],
Thank you for the photos of [ITEM]. I'm sorry it arrived with
[PROBLEM]. That is not what we want you to receive.
[If major problem:] I will refund A$[AMOUNT] to your original
payment method today. [If you'd like a replacement instead, tell me
and I will send one.] [A return label is attached; you do not need
to wait for the refund until we receive the item.]
[If minor problem:] I can [repair / replace] it at no cost to you.
I will [SPECIFIC STEP] by [DATE]. If that does not fix it, I will
refund you.
Please reply to confirm which you prefer, or call me on [NUMBER].
Kind regards,
[NAME]
Late or in transit
Share the tracking, give a date and offer a choice if it does not arrive. Our posts on parcels lost in transit and item not received disputes with Australia Post explain the carrier side.
TEMPLATE C: LATE OR IN TRANSIT
Hi [FIRST NAME],
Thanks for getting in touch about order [NUMBER]. I'm sorry it has
not arrived yet.
Tracking [NUMBER] shows [LATEST SCAN, DATE]. I have asked
[CARRIER] to investigate and will update you by [DATE].
If it has not arrived by [DATE], I will [reship at no cost /
refund A$AMOUNT in full], whichever you prefer.
Please tell me if the delivery address is still [ADDRESS].
Kind regards,
[NAME]
Delivered, but the customer says it is not received
Stay neutral. Do not say the parcel was delivered as if that ended the matter. Ask where they checked, mention the delivery details you can see and offer to help trace it. A parcel may sit with a neighbour, a household member or a parcel locker, as our post on tracking says delivered but the customer says not received explains.
TEMPLATE D: DELIVERED, CUSTOMER SAYS NOT RECEIVED
Hi [FIRST NAME],
Thanks for letting me know, and I'm sorry you can't find your
parcel. I want to help you track it down.
The carrier's record shows delivery on [DATE] at [TIME] to
[ADDRESS]. [It was left [LOCATION] under authority to leave. /
A signature was recorded.] [A photo is attached.]
Could you check [neighbours, a safe place, with others in the
household, a parcel locker, the nearest post office]? I'll also
ask [CARRIER] to look into it today and tell you what they say
by [DATE].
If it still can't be found, please let me know and we'll talk
about the next step. Calling me on [NUMBER] may be the quickest
way.
Kind regards,
[NAME]
The message does not accuse and does not promise a refund, but it commits you to action and a date. If tracking is unclear, a refund or reship may be cheaper than a dispute, as the cost example below shows.
Change of mind
The ACCC says there is no automatic right to a refund for a change of mind unless your own policy offers one, and that if it does you must follow it. Be polite and offer what your policy allows. If the return window has closed, say so kindly and offer an alternative such as store credit, if you choose to. Our post on change of mind refunds in Australia explains how to write the policy.
TEMPLATE E: CHANGE OF MIND
Hi [FIRST NAME],
Thanks for your message about order [NUMBER]. I understand the
[ITEM] isn't what you hoped for.
Our policy, shown at checkout, allows returns of unused items
within [NUMBER] days. [Yours is within that window, so I'm happy
to help: I've attached a return label and will refund A$[AMOUNT]
when it arrives.] [Unfortunately the window closed on [DATE].
As a goodwill gesture I can offer [STORE CREDIT / EXCHANGE].]
If anything is faulty or different from the listing, please tell
me. That would be handled under a different process and I'd want to
fix it.
Kind regards,
[NAME]
The last paragraph matters. It keeps the door open for a genuine fault, which is a separate right, and it prevents you from being seen as hiding behind the change of mind policy.
Unrecognised charge
Send the order confirmation, your statement name and the items, and invite the customer to check with others in the household. This often resolves the matter in one message, as our post on friendly fraud in Australia explains.
TEMPLATE F: UNRECOGNISED CHARGE
Hi [FIRST NAME],
Thanks for flagging the charge. Here is what it relates to:
Order [NUMBER], A$[AMOUNT], placed on [DATE] by [NAME] using the
email [EMAIL]. Items: [ITEMS]. It will appear on your statement
as [DESCRIPTOR]. A copy of the confirmation is attached.
It's worth checking with anyone else who uses the card, in case
it was ordered as a gift or by a family member.
If it still doesn't look right, reply and I'll happily look into it
with you straight away.
Kind regards,
[NAME]
When the customer says they will dispute even after your offer
Stay courteous and do not argue. Say that you understand it is their right, tell them what you will do if a dispute opens, and repeat your offer. Do not make threats and do not offer payment to avoid a dispute.
TEMPLATE G: THEY STILL WANT TO DISPUTE
Hi [FIRST NAME],
I understand, and it is your right to contact your bank. My offer
of [REMEDY] stands until [DATE], and I'm happy to do it today if
you tell me you'd like to go ahead.
If you do contact your bank, I'll respond with the order,
delivery and message records, and I'll continue to help you in
the meantime.
Kind regards,
[NAME]
What should you never say when a customer threatens a chargeback?
If a customer threatens a chargeback, never threaten, argue about intent, offer money to hold off a dispute, or tell the customer they have no rights. Those lines can escalate the matter, mislead the customer or cause trouble. A neutral, helpful message keeps your options open and gives you a clean record.
| Do not say | Why | Say this instead |
|---|---|---|
| "You'll lose, I have the tracking" | Reads as a threat and a refusal | "I'll look into the delivery today and tell you by [DATE]" |
| "You're trying to get a free item" | Accusation with no proof | "I'd like to understand what happened" |
| "You only have 30 days to dispute" | Likely wrong; limits are longer | Say nothing about dispute limits |
| "We have a no refunds policy" | The ACCC says it cannot deny major-problem rights | "Let me check what we can do for this problem" |
| "Contact the manufacturer" | The ACCC says sellers cannot send customers away | "I'll arrange this with the supplier for you" |
| "I'll pay you extra if you drop it" | Looks like paying for silence | Resolve the problem and ask them to contact their bank if they are satisfied |
| "Chargebacks are fraud" | Not accurate and escalates | Stay factual and offer help |
On the "30 days" line, Consumer Affairs Victoria says customers have roughly 45 to 120 days, depending on the provider, and NAB lists up to 210 days for eftpos. Quoting a shorter figure to a customer could be misleading.
What does each response really cost?
When a customer threatens a chargeback, a prompt fix costs far less than a lost dispute. The ACCC's refund rules apply whichever route you choose, but a dispute adds the fee, the time and a mark on your chargeback rate. The example below compares four paths on a single order. The fee used is the reported A$25, which we could not find on Shopify's Australian pages.
Illustration: an A$98 order with a threat
An A$98 order costs you A$38 in goods and A$9 in postage. Processing at 1.7% plus 30 cents, per Shopify's Australian pricing page checked on 10 October 2026, is A$1.97 (1.7% of A$98 is A$1.67, plus 30 cents). The customer threatens a chargeback over a fault. The item is returnable and would be resaleable.
| Path | What happens | Net result |
|---|---|---|
| Customer satisfied, no action | Sale stands | plus A$49.03 (A$98 less A$38, A$9 and A$1.97) |
| Goodwill partial refund of A$20 | Sale stands, less A$20 | plus A$29.03 |
| Full refund, item returned | Sale reversed, return postage A$8 | minus A$18.97 (A$9, A$1.97 and A$8) |
| Ignore the threat, dispute lost | Amount and fee taken, goods gone | minus A$73.97 (A$38, A$9, A$1.97 and A$25) |
The gap between a full refund with a return and a lost dispute is A$55.00. A goodwill gesture that keeps the customer is A$103.00 better than a lost dispute. If the fee is not returned on a win, a won dispute lands at plus A$24.03. That is better than a refund but worse than keeping the customer. Our post on accepting or fighting a Shopify dispute sets out the decision.
Illustration: the dated timeline
A customer threatens a dispute on Tuesday 17 November 2026. You reply on Wednesday 18 November, and the matter is fixed by Friday 20 November 2026. Compare the other path, where there is no reply and the customer disputes on Monday 23 November 2026.
| Date | Path 1: you reply and fix it | Path 2: no reply, dispute opens |
|---|---|---|
| Tuesday 17 November 2026 | Threat arrives | Threat arrives |
| Wednesday 18 November 2026 | You reply within one business day | No reply |
| Friday 20 November 2026 | Remedy delivered; matter closed | Nothing |
| Monday 23 November 2026 | Nothing | Dispute opens |
| Wednesday 25 November 2026 | Nothing | You submit evidence, if you fight |
| Monday 30 November to Monday 14 December 2026 | Nothing | Response window, 7 to 21 days |
| Monday 8 February 2027 | Nothing | Latest bank decision, 75 days after submission |
Path 1 closes in three days. Path 2 stays open for about 11 weeks (Monday 23 November 2026 to Monday 8 February 2027).
How do you get ready before a customer threatens a chargeback?
Prepare three things in advance: a saved set of reply templates, a named person who answers within a business day, and a short list of remedies you are willing to offer for each problem. When a customer threatens a chargeback, you then reply in minutes instead of drafting under stress.
Most threats arrive when you are busy, often after a sale event. Click Frenzy is on 12 November 2026, Black Friday on 27 November and Cyber Monday on 30 November, and the messages that follow can pile up. A saved folder of templates A to G, an agreed refund limit for staff and a shared inbox rule that flags the words "chargeback", "dispute" and "my bank" keep the first reply fast. If a customer threatens a chargeback on a Saturday, an auto-reply that promises an answer by the next business day is better than silence.
| Preparation | What to set up | Why |
|---|---|---|
| Templates | Save A to G in your help desk or a shared document | A reply in minutes |
| Authority | Agree what staff can refund or replace without asking | No delay for approval |
| Flag words | Alert on "chargeback", "dispute", "bank", "fraud" | Threats reach a person quickly |
| Weekend cover | An auto-reply with the next business day | Customers know when to expect an answer |
| Records | Save the thread to the order | It becomes evidence if a dispute follows |
| Weekly review | Look at open complaints every Friday | Nothing sits unanswered |
THREAT RESPONSE CHECKLIST
[ ] Read the whole message and the order before replying
[ ] Check the facts: order, tracking, listing, policy, photos
[ ] Decide the remedy (refund, replace, repair, update, explain)
[ ] Reply within one business day using the right template
[ ] Give a specific step and a date
[ ] Ask them to contact you before their bank
[ ] Save the thread and the remedy to the order notes
[ ] Do the thing you promised, on the date you promised
[ ] Follow up in writing when it is done
[ ] If an inquiry or chargeback opens, move to the dispute response
How do you handle phone calls and public posts?
On the phone, listen first, repeat the problem back, offer a specific step and confirm it in writing straight after. In public, reply briefly and politely, then take the conversation to a private channel. Never share order details publicly, and never argue.
PHONE SCRIPT
1. "Thanks for calling. Can I take your order number?"
2. Listen without interrupting. Write down the facts and times.
3. "So the problem is [REPEAT]. I'm sorry about that."
4. "Here is what I can do: [REMEDY] by [DATE]."
5. "Can I ask you to give us until [DATE] before contacting your
bank, so we can fix it?"
6. "I'll email you a summary now so you have it in writing."
7. After the call: send the email, save the notes on the order.
PUBLIC REPLY (review or social post)
Hi [FIRST NAME], I'm sorry to hear this. I'd like to put it right.
Please email [ADDRESS] or message us with your order number and
we'll sort it out today.
Keep the public reply free of order details, amounts and any hint about disputes.
What if they dispute anyway?
If the customer opens an inquiry, a full refund ends it, and a partial refund does not. If a chargeback is already open, you cannot refund it through Shopify because the bank has taken the funds, so you respond or accept. If you then fix the problem, the customer can ask their bank to withdraw.
Shopify says a withdrawal needs a formal letter from the bank, which can take 30 to 90 days or more. During that time your response deadline does not move. Our posts on refunding a customer who opened a dispute and refunded but the customer still disputes cover the steps, and chargeback response templates give you the words for the response.
| Stage | Can you refund through Shopify? | What to do |
|---|---|---|
| Threat only | Yes | Fix it and keep the record |
| Inquiry open | Yes, full refund ends it | Refund in full or respond |
| Chargeback open | No | Respond, or accept |
| Chargeback won | Not needed | The amount returns in a payout |
What's different for Australian merchants?
Australian merchants must remember that consumer guarantees apply whatever the policy says, that customers have long dispute windows, and that AFCA expects customers to approach the merchant first. Your replies should reflect those, and avoid statements that conflict with Australian Consumer Law.
- Consumer guarantees. The ACCC says "no refunds" cannot deny rights for major problems and that sellers cannot tell customers to go to the manufacturer.
- Change of mind. No automatic right, unless your own policy offers one.
- Customers contact you first. AFCA says so on its chargebacks factsheet, and banks may ask how the customer tried to resolve it.
- Long windows. Consumer Affairs Victoria says 45 to 120 days, and NAB lists 210 days for eftpos.
- The fee. Shopify's Australian pricing page lists no dispute fee. Third parties report A$25, and NAB charges its own merchants A$25.
- Business days. Reply within a business day, and remember refunds take time to appear in the customer's account.
- GST. The ATO says a refund for returned goods is an adjustment event, and the page does not cover chargebacks. Ask your accountant.
- Other methods. Afterpay and PayPal customers use separate systems. See Afterpay and Zip disputes and PayPal disputes.
What mistakes make it worse when a customer threatens a chargeback?
The worst mistake when a customer threatens a chargeback is silence. Others are defensiveness, quoting policy at a genuine fault, accusations and unlawful or misleading statements. Each one gives the customer a reason to go to their bank, and some leave you with a weaker record.
- Not replying. An unanswered message is the most common path to a dispute.
- Quoting your policy first. It reads as a refusal.
- Accusing the customer. You rarely know the facts, and it escalates.
- Saying "no refunds" to a genuine fault. The ACCC says it cannot deny those rights.
- Giving the wrong dispute deadline. Customers often have far longer than you say.
- Offering money to drop it. It looks like paying for silence and can backfire.
- Promising what you cannot do. A missed promise is worse than a slower, honest one.
- Not saving the thread. Your replies are evidence if a dispute follows.
Frequently asked questions
What should I say when a customer threatens a chargeback?
Reply within one business day, acknowledge the problem, offer a specific step with a date and give them a way to reach you. Ask them to contact you before their bank. Do not threaten, argue or accuse. A calm message fits what AFCA says customers should do first.
Should I refund straight away?
If the customer is likely entitled, yes. The ACCC says a major problem entitles them to a full refund. If it is a change of mind, there is no automatic right unless your policy offers one. On small orders, a refund is often cheaper than a lost dispute with a possible A$25 fee.
Can I stop a customer from disputing?
No. The right to contact their bank belongs to the customer. What you can do is fix the problem quickly, keep a record and ask them to give you the chance first. Never pay or pressure them. Shopify says the bank decides any chargeback, and there is no appeal.
What if the customer who threatens a chargeback is lying?
You usually cannot know, so do not say it. Stay neutral, state the delivery and order facts, and let the bank decide. Save the messages. If a dispute opens, a calm factual record is your best response. Our post on friendly fraud in Australia shows how to handle these cases.
Will a refund stop the chargeback?
For an inquiry, a full refund ends it and prevents a later chargeback, while a partial refund does not. If a chargeback is already open, you cannot refund through Shopify. If you refund before any dispute opens, there is usually nothing left to dispute.
Is it OK to ask the customer not to contact their bank?
Asking them to give you a chance to fix it first is fine. AFCA says customers should contact the merchant first. Telling them they cannot contact their bank, or implying a penalty, is not fine. Keep the request polite and say you understand it is their right.
How long does a customer have to dispute?
Consumer Affairs Victoria says roughly 45 to 120 days depending on the provider, and NAB's merchant page lists up to 210 days for eftpos. AFCA says the clock can run from the date the customer expected the goods. Do not give a customer a shorter figure.
Should I reply on social media?
Reply briefly and politely, then move the conversation to email or phone. Do not post order details, amounts or any mention of disputes. A public argument can cause more harm than the original complaint. Save screenshots of the thread in case you need them later.
What if they already opened a dispute?
If it is an inquiry, a full refund ends it. If it is a chargeback, you cannot refund it through Shopify, so you respond with evidence or accept it. Our guide to refunding a customer who opened a dispute covers the options and timing in more detail.
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 for the day a customer threatens a chargeback, you can try it on a free trial first.
Sources
- Chargebacks factsheet, Australian Financial Complaints Authority
- Repair, replace, refund, cancel, ACCC
- Chargebacks and inquiries, Shopify Help Center
- Responding to chargebacks and inquiries, Shopify Help Center
- Resolving a chargeback or inquiry, Shopify Help Center
- Chargeback reasons, Shopify Help Center
- Shopify pricing, Australia
- Chargebacks, Consumer Affairs Victoria
- Chargebacks: prevention and dispute guide for merchants, NAB
- When to make adjustments, Australian Taxation Office
01How chargebacks work
02How chargebacks work
03Prevention and templates
04Shopify disputes
05Shopify disputes
06Compliance