How chargebacks work in Australia: the merchant's side

An Australian customer disputes an A$180 order on a Thursday, and the money is already coming out of your next payout, plus a fee. Nobody asked you first, and a clock has already started.

How chargebacks work in Australia, from the merchant's side: a cardholder disputes a card payment with their bank, the bank pulls the money back through the card scheme, and you get a short window, usually 7 to 21 days on Shopify, to send evidence. The bank decides, and Shopify cannot overturn it.

This guide is for you if:

• You run a Shopify store in Australia and have just received your first dispute notice, or you are afraid of getting one.
• You have heard the numbers 7, 21, 75 and 120 days and cannot tell which clock matters to you.
• You want to know what is actually happening behind the scenes before you decide whether to fight, refund or accept.

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

The 30-second answer (TL;DR)

• A chargeback in Australia is a reversal the cardholder's bank has already made. The money leaves your payout straight away, and the fee comes with it.
• Chargeback time limits in Australia stack as four clocks: the cardholder's window to dispute (often 45 to 120 days), your response window (usually 7 to 21 days), the bank's decision time (up to 75 days after you submit) and any re-dispute after a win.
• Your evidence goes to the bank through Shopify Payments. If you add nothing, Shopify still submits the case on the due date.
• You can accept it, fight it, or, for an inquiry only, refund in full. An open chargeback cannot be refunded.
• A win returns the amount. The fee is reported as A$25 for Australian stores but is not on Shopify's Australian pricing page, so confirm it, and whether it comes back.
• Winning does not remove the dispute from your chargeback rate, which is what Shopify monitors.
• For chargebacks in Australia, merchants should also know the Australian Consumer Law, the Australian Financial Complaints Authority (AFCA) and the ePayments Code, because cardholders use them and they shape what the bank does.

Quick note: Many sellers think a chargeback is a refund request they can still answer by refunding the customer. Once a chargeback is open the bank is holding the funds, so you cannot refund it; you can win it, accept it, or wait for the customer's bank to withdraw it.

From dispute to decision

Step	Who acts	Typical timing	What you do
1. Customer disputes the payment	Cardholder and their bank	Often within 45 to 120 days of the payment, depending on the card provider	Usually nothing yet, you may not know
2. Money is pulled back	Bank and Shopify Payments	Straight away	Check your payout and the dispute notice
3. You respond	You	Usually 7 to 21 days	Add evidence, then press Submit now
4. Shopify submits to the card company	Shopify Payments	When you submit, or on the due date	Nothing, you cannot edit afterwards
5. The bank decides	Issuing bank	Up to 75 days after submission	Wait, there is no appeal
6. Outcome	Issuing bank	Won, partly won or lost	Won: money back. Lost: nothing back

How chargebacks work in Australia: who is involved?

Five parties sit behind every chargeback in Australia: the cardholder, their bank (the issuing bank), the card scheme such as Visa, Mastercard or eftpos, your payment processor, and you. On Shopify Payments, Shopify is the processor, so it receives the dispute and passes it to you. The issuing bank makes the decision.

Two terms are worth defining before we go further. A chargeback is a payment reversal started by the cardholder's bank. Representment is the industry word for the evidence you send back to argue the payment was valid. You will not see that word in a Shopify notice, but you will see "Add evidence".

Party	What they do	What you deal with
Cardholder	Disputes the payment with their bank	Their reason and any messages they sent you
Issuing bank	Reviews the claim, may reverse the payment, decides the outcome	Nothing directly, it reads your evidence through Shopify
Card scheme	Sets the rules and time limits (Visa, Mastercard, eftpos)	The reason codes behind the dispute reason
Payment processor (Shopify Payments)	Takes the money from you, shows the dispute, submits your evidence	The dispute banner on the order page, and emails to your store contact address
You	Respond, accept, or refund where allowed	Everything with a deadline

Shopify says it is not liable for a chargeback and is not involved in the decision. On its fraud analysis page it states plainly that Shopify does not cover charge reversals from banks. That is the first thing to absorb: nobody at Shopify can reverse a lost dispute for you.

How chargebacks work in Australia, step by step

A chargeback starts when a cardholder tells their bank a payment was wrong. The bank can reverse it through the card scheme, your processor takes the money from you, and you then have a short window to send evidence. Afterwards the bank reviews both sides and decides.

Here is the chargeback process in the order it happens.

1. The customer contacts their bank. AFCA says cardholders should contact the merchant first and ask for a refund or a reasonable alternative, and their bank may ask how they tried to resolve it. A dispute can still land without any message to you beforehand.
2. The bank assesses the claim. If a chargeback right exists under the scheme rules, AFCA says the bank must claim it, and the merchant's bank can accept or reject it. If the banks disagree, the card scheme decides.
3. Shopify takes the money. For a Shopify Payments chargeback, Shopify says the disputed amount is taken immediately and, with Shopify Payments, deducted from your next available payout. A chargeback fee applies as well.
4. You get a notice. Shopify emails the store contact address and shows a banner on the order. Even a closed or paused store still receives the email.
5. You decide what to do. Add evidence and submit, accept the chargeback, or ask the customer to have their bank withdraw it.
6. Shopify submits your response. If you press Submit now, it goes at once. If you do nothing, Shopify Payments submits on the due date anyway.
7. The bank decides. For chargebacks the bank has up to 75 days after submission. Shopify cannot appeal or overturn the decision.
8. The result lands. A full win returns the amount. A partial win returns part. A loss returns nothing.

There is also a quieter path through the chargeback process. Shopify describes a network dispute resolution programme in which some disputes are settled automatically and the customer is reimbursed before the dispute becomes a formal chargeback, with no evidence window. If your store is enrolled, some of this process never reaches you.

You can see how this plays out on your own store in our guide on how to respond to a Shopify Payments dispute. The rest of this page explains what is going on behind each step.

How long do cardholders have to dispute a payment? Chargeback time limits in Australia

Cardholders usually have between 45 and 120 days, depending on their card provider, according to Consumer Affairs Victoria. Some disputes run longer: NAB lists 210 days for eftpos, and AFCA says the clock can run from the date the customer expected to receive the goods, not only the purchase date. Treat any order as open to a chargeback in Australia for at least four months.

The reason chargeback time limits in Australia have no single number is that each card scheme sets its own rules, and individual banks add their own processes on top. That is why you will read "45 days" on one page and "120 days" on another and both can be true.

Clock	Who sets it	Length	Source and caution
Cardholder dispute window, general	Card provider	45 to 120 days, depending on the provider	Consumer Affairs Victoria, page updated 12 October 2023
When the clock starts	Card scheme rules	Often the purchase date, or the date the customer expected the goods, or learned they would not arrive	AFCA factsheet, checked 10 October 2026
eftpos, Mastercard and Visa cardholder windows	Card schemes, as published by NAB	eftpos 210 days, Mastercard 120, Visa 120, varying by reason	NAB, an acquiring bank, page undated, checked 10 October 2026
Your response window on Shopify	Shopify	Usually 7 to 21 days	Shopify Help Center
Bank decision after you submit	Issuing bank	Up to 75 days for chargebacks, 65 to 75 days usual for inquiries	Shopify Help Center
Response to an acquirer such as NAB	NAB	eftpos 30 days, Mastercard 45, Visa 30	NAB's own process, not Shopify's
Retry after a failed bank debit	Shopify	3 business days	Shopify Help Center

This is the easiest place to get confused about chargebacks in Australia. The 120-day number is how long the customer has. The 7 to 21 days is how long you have. They have nothing to do with each other, and your deadline is always the date printed on the dispute in your admin.

What does the ePayments Code add to chargebacks in Australia?

The ePayments Code is a voluntary consumer code administered by ASIC that covers electronic payments, including cards, and it sets bank-side timelines for investigating unauthorised transactions. It protects consumer accounts and excludes business-purpose facilities. It does not give merchants a right to appeal a chargeback, and nothing we read in it says otherwise.

What it does affect is how long your dispute can take. The version we opened (June 2022) says a bank must accept a report of an unauthorised transaction made within 6 years of the cardholder becoming aware of it. It also says the bank should either complete its investigation within 21 days or tell the customer more time is needed, and complete it within 45 days unless exceptional circumstances apply.

Where a bank resolves a disputed card transaction through scheme rules, the scheme timeframes replace those 21 and 45 days. If it is not resolved within 60 days, the bank must explain the delay and give updates every 2 months. The Code also says the cardholder's obligation to pay the disputed amount is suspended while it is resolved. In plain terms, that explains why a chargeback in Australia that looks simple to you can sit with a bank for weeks.

ASIC's page, checked on 10 October 2026, lists 2 June 2022 as the latest version and mentions no planned change. It says most banks, credit unions and building societies subscribe, and that the Code only protects consumers who deal with a subscriber.

How long do you have to respond to a Shopify Payments chargeback?

Shopify usually gives you 7 to 21 days from the notice. The due date shows in your store's timezone, and if no time is shown it means 11:59 PM that day. If you add nothing, Shopify Payments still submits the case on the due date, so a silent dispute is decided on automatic data alone.

That automatic data is not nothing. For Shopify Payments, Shopify attaches order details, addresses, the IP address, fulfilment and tracking information, refunds, and prior orders and disputes. What it cannot attach is what only you hold: customer messages, your policies as they were at the time, delivery photos and digital access logs.

You can edit your response until the due date, but once you press Submit now, it cannot be changed. Shopify's admin steps are: Orders, open the order, find the chargeback banner, Add evidence, Save, then Submit now. Menu wording changes over time, so follow what your admin shows.

We could not find anything on the Shopify pages we opened about how weekends or public holidays affect a due date. Do not assume an extra day. If your date falls on a Saturday, submit on the Friday.

Who decides the chargeback, and can you appeal?

The issuing bank decides, not Shopify. Shopify says there is no appeal and that it cannot overturn the decision. For chargebacks the bank can take up to 75 days after submission, and inquiries usually take 65 to 75 days but can run longer.

A chargeback in Australia carries one of four statuses in your admin: open, submitted, won or lost. If a bank re-disputes a win through a process called pre-arbitration, Shopify says you get a new deadline and the cycle starts again for that dispute.

When the money cannot be debited because your balance is too low, Shopify says that in Australia the amount is debited from your bank account, with a retry after 3 business days. If that fails again, Shopify tells you to update your bank details or contact support.

What does a chargeback in Australia cost, and when does the money move?

When a chargeback opens, the bank takes the disputed amount straight away. On Shopify Payments it comes out of your next available payout, and a chargeback fee applies, reported as A$25 for Australian stores. Winning returns the amount. Whether the fee returns depends on the country, so confirm it in your admin.

A note on that A$25 chargeback fee in Australia. Shopify's own overview says the fee may be refunded depending on country or region, and a separate page says a win returns the amount and fee. Shopify's Australian pricing page, which we checked on 10 October 2026, lists payment rates but no dispute fee, and no Shopify Help page we opened has an Australia row. The A$25 comes from third-party articles dated 2026, and NAB separately charges its own merchants A$25, so the two figures are easy to confuse. Confirm the amount with Shopify Support before you build a budget around it. Our dedicated post on the Shopify chargeback fee in Australia goes through this in more detail.

Event	What happens to your money	Notes
A Shopify Payments chargeback opens	Disputed amount and fee come out of your next available payout	Shopify Payments, per Shopify Help
Inquiry opens	Nothing is taken at first	A full refund ends an inquiry and prevents a later chargeback
Inquiry closes against you at the customer's side	The amount and fee may be debited	The customer may escalate it to a chargeback
You win in full	The amount comes back, usually in a later payout	The fee may or may not return, depending on country
You win partly	Part of the amount comes back	Shopify lists partial wins as an outcome
You lose	Nothing comes back	The customer keeps the refund
You accept	Amount goes to the customer, fee does not return	You do not submit the response
Balance too low	Debited from your bank account in Australia	Retry after 3 business days

Illustration: what an A$180 dispute really costs

This example uses an A$180 order where the goods cost you A$70 and you paid A$14 postage. We are leaving out payment processing fees, because we could not verify how they are treated on a lost dispute.

Line	You lose the dispute	You win, fee returned	You win, fee not returned
Money received from the sale	A$180	A$180	A$180
Goods and postage already spent	minus A$84	minus A$84	minus A$84
Disputed amount taken by the bank	minus A$180	A$0	A$0
Chargeback fee	minus A$25	A$0	minus A$25
Net position	minus A$109	plus A$96	plus A$71

The swing between a loss and a full win on this Australian chargeback is A$205, and still A$180 if the fee does not come back. That is the number to hold in your head when you decide whether the hour of evidence work is worth it.

Illustration: why small orders hurt more

Take an A$45 order. The goods cost A$18 and postage was A$9.50, so you have spent A$27.50. If you lose, the bank takes A$45 plus the A$25 fee, and your net position is minus A$52.50. If you win with the fee returned, you are ahead A$17.50.

The A$25 fee is more than half the A$45 order. On small Australian chargebacks the fee, not the order value, is often what you are really fighting over, and a goodwill refund before the dispute opens can cost far less. That trade-off is covered properly in accepting or fighting a Shopify dispute.

Does winning clear the dispute from your record?

No. Shopify says won disputes still count toward your dispute rate. A high rate can lead to account health notifications, reserves or enrolment in monitoring programmes, which is why a win protects cash but not your standing. Read chargeback rate and Shopify account health for what to watch.

Which reasons can customers give for chargebacks in Australia, and what answers each one?

Shopify groups disputes into reasons such as fraudulent, unrecognized, duplicate, subscription canceled, product not received, product unacceptable, credit not processed and general. The reason decides what the reviewer wants to see, so read it before you gather anything. Sending delivery proof to a "credit not processed" dispute is wasted effort.

The table below pairs each reason with what tends to answer it. The reasons and the prevention advice come from Shopify's own help pages. The matching evidence is practical guidance built on Shopify's evidence order, not a promise of any outcome.

Shopify reason	What the customer is saying	What tends to answer it
Fraudulent	"I did not make this payment"	Order data that ties the buyer to the order, such as billing and shipping address match, IP, earlier orders, and proof of delivery to that address
Unrecognized	"I do not know this charge"	A receipt, the order confirmation, and your billing descriptor so the name matches the statement
Duplicate	"I was charged twice"	Both order records showing separate items, or proof you refunded an accidental double charge
Subscription canceled	"I cancelled but you charged me"	Terms shown at sign-up, the cancellation date and the charge date
Product not received	"It never arrived"	Tracking showing delivered, delivery photos, address match, customer messages
Product unacceptable	"Damaged, defective or not as described"	Accurate listing text and photos, packing records, return policy, messages, any remedy you offered
Credit not processed	"I returned it or cancelled and got no refund"	Refund confirmation, or your return policy and the facts showing no return was received
General	Any other complaint	Whatever best matches the stated complaint

Consumer Affairs Victoria lists the grounds a customer is likely to give as goods not as described, non-delivery, duplicate charges, unauthorised transactions and a business that has closed. It also says chargebacks are generally not available for cash, money transfers, cheques, direct debits or BPAY. That is a limit on which payments can be charged back, and it is worth knowing if you take payments outside cards.

Shopify's prevention page also makes a useful point about card-not-present risk. A card typed in by hand is a card-not-present transaction, even in a shop, and carries more fraud risk. For orders taken by phone or email, Shopify suggests sending a draft order invoice so the customer pays through checkout, where 3D Secure authentication can apply.

How long does a chargeback take in Australia from start to finish?

From the customer's first complaint to the final decision, a chargeback can take around three months or more on Shopify. In the example below, the dispute is filed 44 days after the order, and the bank has until mid December to decide, about 75 days after you submit.

Illustration: one dispute, dated

The dates below are invented to show how the clocks stack. We have assumed Shopify notifies you on the day after the customer files, with 14 days to respond. Real windows vary between 7 and 21 days.

Date	What happens	Which clock
Tuesday 4 August 2026	Customer orders and pays A$180	The cardholder's dispute window starts
Monday 10 August 2026	Courier scan shows delivered to the order address	Save this proof now
Thursday 17 September 2026	Customer disputes with their bank, 44 days after the order	Inside every window in the table above
Friday 18 September 2026	Shopify notifies you, due date set 14 days ahead	Your clock starts
Wednesday 30 September 2026	You submit with two days to spare	Shopify sends your evidence to the card company
Friday 2 October 2026	The original due date	Not needed, you already submitted
Monday 14 December 2026	Latest the bank would normally decide, 75 days after you submitted	The bank's clock ends

Two things stand out about chargebacks in Australia. First, nearly three months sit between your submission and the bank's longest decision window, during which the money is simply gone from your balance. Second, the customer's 44 days is the part of the timeline you never see. If you ship a parcel on a Tuesday, you are exposed to a chargeback in Australia for months afterwards.

Shopify says inquiries usually take 65 to 75 days to close, and can take longer. During an inquiry nothing is taken, but a closed inquiry can escalate to a chargeback, at which point the amount and fee are debited.

What are your options when a chargeback lands?

You have four options: fight with evidence, accept the loss, ask the customer to have their bank withdraw it, or, if it is only an inquiry, refund in full. An open chargeback cannot be refunded, because the bank is holding the funds. Which one is right for a chargeback in Australia depends on the proof you hold and the order value.

Situation	Best move	Why
You hold direct proof, such as a delivered scan to the order address plus customer messages	Fight	Strong, direct proof is the first thing a reviewer reads
It is an inquiry and you owe the customer something	Refund in full	Shopify says a full refund ends the inquiry and prevents a later chargeback, while a partial refund does not
A chargeback is open and you have sorted it out with the customer	Ask them to have the bank withdraw it	You need a formal withdrawal letter from the bank, since a screenshot is not enough
The evidence is thin and the order is small	Accept	The amount goes to the customer and the fee does not return, but you save the time
A chargeback is open and you want to refund	You cannot refund it	The bank holds the funds, so the choices are fight, accept or withdrawal

On the withdrawal route, Shopify warns that bank letters can take 30 to 90 days or more, and that there is no way to speed them up for American Express or for Visa disputes with the fraudulent reason. Do not wait for a letter if your due date is close. Submit your evidence at the same time and let the withdrawal arrive when it arrives.

If you choose to accept, you either do not submit or you close the form. The disputed amount goes to the customer and the fee is not returned. That is a legitimate business decision on a low-value order, and our post on accepting or fighting a Shopify dispute gives the break-even sums.

A refund and a chargeback are not interchangeable, even though both return the customer's money. We cover the differences in chargeback vs refund in Australia and how an inquiry differs in chargeback vs inquiry on Shopify Payments.

What proof do reviewers actually read?

Reviewers may spend only minutes on a case, so Shopify recommends putting your strongest proof first. The suggested order is direct proof, then customer acknowledgments, then your policies, then supporting context, each item labelled with its type, date and what it shows. Screenshots work better than links.

The upload rules inside the chargeback process are strict, and breaking them can cost you the evidence entirely. These come from Shopify's chargebacks-in-admin page.

Rule	What Shopify says
Accepted formats	PDF, JPEG and PNG
PDF standard	PDF/A, under 50 pages
File size	Each file 2 MB maximum, 4 MB in total
Files per type	One file per evidence type
Not accepted	Audio, video, external links, and "contact me" requests
Editing	You can edit until the due date, and not after Submit now
Store timezone	The due date uses your store timezone, 11:59 PM if no time is shown

Because there is one file per evidence type, combine related screenshots into a single PDF rather than uploading six images and hoping all of them are read. Number the items and refer to the numbers in a short cover note, as in the template further down.

The full list of what to save for chargebacks in Australia is in our chargeback evidence checklist for Australian Shopify stores. Save the delivery scan, the address, the messages and the policy page at the time of fulfilment, not when the dispute lands.

Can a bank reopen a dispute, and can a customer complain to AFCA?

Yes to both. After a win, a bank can re-dispute through pre-arbitration, and Shopify gives you a new deadline. Separately, a cardholder whose claim is rejected can complain to the Australian Financial Complaints Authority, which, according to its own factsheet, checks whether the bank made reasonable efforts, chose the most appropriate reason and properly challenged the merchant's response, and cannot review the card scheme's decision.

Consumer Affairs Victoria also says wrongly rejected claims on a chargeback in Australia can go to AFCA. That complaint is between the customer and their bank, not with you. AFCA's factsheet says it will not require a refund where the bank met its obligations, even if the chargeback failed, and it does not describe any step for merchants, so how an AFCA outcome flows back to a merchant is something we could not verify. If a dispute you have won comes back, treat it as a new dispute with its own deadline.

What should you do on day one? A checklist and two templates

On day one of the chargeback process, read the reason, note the due date, pull the order and delivery records, and decide whether to fight, accept or ask the customer to withdraw. Do not refund an open chargeback. Use the checklist below, then send the customer a short, factual message.

DAY-ONE CHARGEBACK CHECKLIST

[ ] Read the dispute reason on the order page banner
[ ] Write down the due date and time (store timezone) in your calendar
[ ] Check whether this is a chargeback (money taken) or an inquiry (nothing taken yet)
[ ] Save the order record, delivery scan and delivery address as PDFs
[ ] Save every customer message about this order as one PDF
[ ] Save the policy page the customer saw at checkout, with the date
[ ] Work out the real cost: order value + fee, minus goods and postage already spent
[ ] Decide: fight / accept / ask customer to withdraw / refund in full (inquiry only)
[ ] If fighting, number the exhibits and write the cover note
[ ] Submit at least one full day before the due date
[ ] Record the outcome and what you would change next time

A short message to the customer can resolve a surprising number of disputes, and it costs nothing. Keep it factual, never accusatory, and do not promise a refund you cannot make on an open chargeback.

Subject: Your order [ORDER NUMBER] with [STORE NAME]

Hi [FIRST NAME],

We noticed a payment dispute on your order [ORDER NUMBER] for A$[AMOUNT],
placed on [ORDER DATE]. We would like to put this right if something went wrong.

Our records show [ONE FACT, for example: the parcel was marked delivered on
[DATE] to the address on the order].

If there is a problem, reply to this email and tell us what happened. If it has
been sorted out, you can ask your bank to withdraw the dispute. Your bank will
give you a written confirmation of the withdrawal, and we will need to see it.

Thank you,
[NAME]
[STORE NAME]

When you do submit evidence, a cover note helps the reviewer find the point quickly. Dated facts and numbered exhibits beat opinion every time.

RESPONSE SUMMARY

Order: [ORDER NUMBER], placed [DATE], A$[AMOUNT]
Dispute reason shown: [REASON]

Facts, in date order:
1. [DATE]: Order placed and paid. See Exhibit A.
2. [DATE]: Order dispatched, tracking [NUMBER]. See Exhibit B.
3. [DATE]: Courier recorded delivery to [ADDRESS ON ORDER]. See Exhibit C.
4. [DATE]: Customer contacted us about [TOPIC]. See Exhibit D.

Exhibits:
A. Order confirmation and payment record
B. Dispatch and tracking record
C. Delivery scan or photo
D. Customer messages (dated)
E. Store policy shown at checkout, dated [DATE]

Please find in favour of the merchant on the basis of the facts above.

What's different for Australian merchants?

Four Australian details change how you handle a dispute: the chargeback fee reported at A$25, the consumer guarantees under the Australian Consumer Law, the cardholder's route to AFCA, and the bank-side rules in the ePayments Code. This is general information, not legal advice.

The Shopify Payments chargeback fee

The money section above explains where the reported A$25 comes from and why it needs confirming. The practical step is the same here: check your own admin or ask Shopify Support, then budget with the confirmed number.

Consumer guarantees and "no refunds" signs

The ACCC says businesses cannot remove consumer guarantees with "no refunds" signs, and that a seller cannot refuse to help by telling the customer to contact the manufacturer. If a customer is genuinely owed a remedy, a quick refund at the inquiry stage is usually cheaper than a lost chargeback in Australia. The posts on refund policies for Australian Shopify stores and whether you can say "no refunds" go through the detail.

GST and BAS

The ATO says a refund for returned goods is an adjustment event, that a decreasing adjustment reduces the GST you pay, and that you must reimburse the customer before reporting it on your activity statement. The page we opened does not cover chargebacks, credit notes or bad debts, so the GST treatment of a lost chargeback is something we could not verify. Ask a registered tax agent or the ATO on 13 28 65.

Afterpay, PayPal and other payment methods

Afterpay and PayPal run their own dispute systems with their own clocks, separate from a card chargeback. PayPal's seller protection depends on proof of shipment or delivery that matches the address on the transaction, and it excludes some Guest Checkout and standard card payments for sellers registered in listed countries, which include Australia. These have their own posts: Afterpay and Zip disputes on Shopify and PayPal disputes on a Shopify store.

Public holidays and chargeback time limits in Australia

Shopify says payouts are not processed on weekends or public holidays, and they move to the next business day. Public holidays differ by state. We could not confirm how holidays affect a dispute due date, so submit early if your window spans a long weekend.

Common mistakes with chargebacks in Australia

Several avoidable errors recur in the chargeback process. Each one below is tied to a rule Shopify or an Australian source states.

1. Waiting until the due date. Shopify Payments submits on the due date whether or not you added evidence, so a late start can mean an automatic submission with nothing from you.
2. Trying to refund an open Shopify Payments chargeback. The bank holds the funds, so a refund is not available through Shopify; the options are to fight, accept or wait for a withdrawal.
3. Ignoring an inquiry. If it closes on the customer's side it may escalate, and then the amount and fee are debited.
4. Sending a partial refund to an inquiry. Only a full refund ends it and prevents a later chargeback.
5. Uploading links, video or oversize files. Shopify does not accept external links, audio or video, and enforces a 2 MB limit per file and 4 MB in total.
6. Pressing Submit now too early. After submission nothing can be changed, so check every exhibit first.
7. Accusing the customer of fraud. State dated facts and point to exhibits, because the reviewer reads tone as well as content.
8. Assuming a win protects your account. Won disputes still count toward the dispute rate that Shopify monitors.

For how chargebacks in Australia are tracked at account level, see our post on the chargeback rate and account health.

Frequently asked questions

How long does a chargeback take in Australia?

You usually get 7 to 21 days to respond on Shopify, then the bank can take up to 75 days to decide. Add the time before the customer files and any later re-dispute, and a single chargeback in Australia can run beyond three months from start to finish.

How long do customers have to dispute a card payment in Australia?

Chargeback time limits in Australia vary by card provider: Consumer Affairs Victoria says 45 to 120 days. NAB lists up to 210 days for eftpos, and AFCA says the clock can run from the date the customer expected the goods. Assume any order stays open to a chargeback in Australia for at least four months.

Can a customer charge back a debit card payment in Australia?

Often, yes. NAB lists eftpos, Mastercard and Visa dispute limits separately, and banks such as AMP handle Visa debit disputes under their own limits. Consumer Affairs Victoria says cash, money transfers, cheques, direct debits and BPAY are generally not eligible. Debit rules vary by scheme, so confirm specifics with your processor.

Who decides a chargeback in Australia?

On a Shopify Payments chargeback, the cardholder's bank decides after reviewing the evidence you submit. Shopify says it is not liable for the outcome and is not involved in the decision. It also says it cannot overturn the result, and there is no appeal.

Can I refund a customer after a chargeback is filed?

Not once a chargeback is open, because the bank is holding the funds. For an inquiry, a full refund ends it and prevents a later chargeback, while a partial refund does not. If the customer is satisfied, they can ask their bank to withdraw the dispute.

What happens if I do not respond to a chargeback in Australia?

On the due date Shopify Payments submits the case to the card company with only what Shopify attached automatically, such as order details, addresses, tracking and prior orders. Without your messages, policies or delivery photos the case is weaker, and the bank decides on that alone.

Do I get the chargeback fee back if I win?

Maybe. Shopify's overview says it might refund the fee depending on your country or region, while its resolution page says a win returns the amount and the fee. We could not find an Australia fee table, so confirm in your admin or with Shopify Support.

Can the bank reverse a chargeback decision after I win?

A bank can re-dispute a win through pre-arbitration, and Shopify says you then get a new deadline to respond. It is treated as a fresh round, so keep your evidence files after a win in case the dispute returns.

Can a customer complain to AFCA about a chargeback?

Yes. Consumer Affairs Victoria says claims that were wrongly rejected can go to the Australian Financial Complaints Authority. AFCA says it checks whether the bank made reasonable efforts and cannot review the card scheme's decision. The complaint is against the bank, not against the merchant.

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 to see how chargebacks work in Australia on your own store's data, you can try it on a free trial first.

Start free trial

Sources

• Chargebacks and inquiries, Shopify Help Center
• Responding to chargebacks and inquiries, Shopify Help Center
• Managing chargebacks in the Shopify admin, Shopify Help Center
• Resolving a chargeback or inquiry, Shopify Help Center
• Preventing chargebacks and inquiries, Shopify Help Center
• Fraud analysis, Shopify Help Center
• Payout timing, Shopify Help Center
• Chargebacks, Consumer Affairs Victoria
• Chargebacks: prevention and dispute guide for merchants, NAB
• Chargebacks factsheet, Australian Financial Complaints Authority
• Transaction disputes, AMP Bank
• Shopify pricing, Australia
• ePayments Code, ASIC
• ePayments Code, June 2022, ASIC
• Consumer rights and guarantees, ACCC
• When to make adjustments, Australian Taxation Office
• Seller protection, PayPal Australia