Refund policy for a Shopify store in Australia

Most refund policies are written once, in a hurry, from a template found online, and never read again until a customer quotes them back at you. By then it is too late to find out that the page says "no refunds" in a country where that sentence can land you in trouble, or that it promises 30 days in one paragraph and 14 in another.

A refund policy for a Shopify store in Australia has two jobs. It tells customers what to expect, and it becomes evidence the moment a payment is disputed. This guide shows how to write one that follows Australian Consumer Law, reads clearly, and helps you in a "credit not processed" or "product unacceptable" dispute, with a full template you can adapt and a checklist to test it.

This guide is for you if:

You are setting up a Shopify store in Australia and need a refund policy that holds up.
Your current policy was copied from a template and you suspect it is wrong, vague or contradictory.
You have had a dispute where the customer pointed to your policy, or you wished you had one that said more.

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

The 30-second answer (TL;DR)

A refund policy for a Shopify store in Australia must not contradict the consumer guarantees. The ACCC says "no refund" signs and terms do not override consumer rights, and relying on them for faulty goods is illegal.
Cover three separate things: faulty or misdescribed goods (a legal remedy), change of mind (your choice), and process (how, when and where to return).
For faulty goods the ACCC says you must offer a repair, replacement or refund. For a major problem the customer chooses a refund or replacement. For a minor problem you must repair free.
Change of mind is not covered by the guarantees. If you offer a change-of-mind policy, you must honour it.
Keep dated copies of your return policy. Shopify suggests your refund and return policies, plus proof the customer was informed, as evidence for credit not processed disputes.
Say when refunds are issued, to what payment method, and who pays return costs.
We could not verify some Shopify setup details and any ACCC page on policy wording, so check those yourself.

Quick note: The legal part of a refund policy is the part you cannot change. The commercial part, such as the change-of-mind window, is the part you design. Good policies keep the two visibly separate so a customer, and a reviewer, can see which rule applies to which problem.

The policy at a glance

Section	Is it your choice?	Source of the rule
Faulty, unsafe or misdescribed goods	No, it is a legal right	Consumer guarantees (ACCC)
Change of mind	Yes, but honour what you offer	ACCC
Return process and label	Yes	You
Return costs for a confirmed fault	No, reasonable costs are yours	ACCC
Refund timing and method	Partly: refunds go to the original payment method for a major problem	ACCC
Sale, custom and pre-order items	Partly, and care is needed	Covered in later posts

What should a refund policy for a Shopify store in Australia include?

A good return policy answers six questions in plain words.

What can be returned, and why?
By when?
In what condition?
How do I return it?
Who pays?
When and how do I get my money?

If a customer can find all six answers in your return policy without writing to you, you will receive fewer return requests and fewer disputes. If a reviewer reads the policy beside a dispute, those six answers show immediately whether your position is reasonable.

The legal floor

The ACCC's guidance sets the part of the policy that is not up for negotiation. In summary:

A failed consumer guarantee means you must offer a repair, replacement or refund. You cannot send the customer to the manufacturer.
A major problem is one that is unsafe, significantly different from its description or sample, has a serious fault (or several smaller faults that would stop a buyer purchasing), or cannot be used for its purpose and cannot be fixed quickly. The customer chooses a refund or a replacement. There is no deduction for use, and the refund goes to the original payment method. The customer may instead keep the item and receive compensation.
A minor problem means you must repair free. A refund or replacement is not required, though you may offer one. If you fail to repair within a reasonable time, the customer can have it fixed elsewhere and claim the cost, take a refund or replacement, or keep the item with compensation.
Change of mind is not covered. If you offer a change-of-mind policy, you must honour it.
Customers do not need original packaging. You may ask for proof of purchase.
You must pay collection for bulky items and 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.
"No refund" signs and terms do not override consumer rights.

Your refund policy should reflect all of this without fighting it.

How do you structure a refund policy so it is easy to read?

Write the refund policy with headings that match the customer's problem, not the law's vocabulary.

1. If something is wrong with your order

Cover faulty, damaged, unsafe and not-as-described items first. This section should be the most prominent, because it is the part customers are legally entitled to and the part most likely to cause trouble.

2. If you've changed your mind

State what you offer, if anything. This is where your commercial choices live: the number of days, the condition required, who pays return postage, and whether you refund or give store credit.

3. How to return something

The process: contact us, get an approval and reference number, use the label, pack securely.

4. When you'll get your money

Say when the refund is issued and to which payment method. For a major problem the ACCC says the refund goes to the original payment method.

5. What we can't accept

Be specific: items that are used beyond reasonable inspection (for change of mind), hygiene-sealed goods if you decide to exclude them from change of mind, or items outside your window. Make clear these limits apply to change of mind and not to faulty goods.

6. Contact details

An email address and a response time. Shopify's prevention guidance says to make contact details easy to find and reply quickly, because customers who cannot reach you go to their bank.

A refund policy for a Shopify store: a template you can adapt

Copy this into your Shopify policy page, then change the details to match your store. The wording is a starting point, not legal advice, and you should check it against your products.

Returns and refunds

If something is wrong with your order If your item arrives faulty, damaged, unsafe, or significantly different from how we described it, please contact us. Under the Australian Consumer Law you may be entitled to a repair, replacement or refund. For a major problem you can choose a replacement or a refund. For a minor problem we'll repair the item or offer a remedy. We'll reimburse reasonable costs of returning a faulty item, and you don't need the original packaging. We may ask for proof of purchase.

If you've changed your mind You can return unused items in their original condition within [number] days of delivery for a refund of the item price. [Return postage is paid by you / us.] Change-of-mind returns aren't covered by the Australian Consumer Law, so this is our own policy, and we'll honour it.

How to return something Email [address] with your order number and the reason. We'll send an approval, a reference number and [a prepaid return label]. Please pack the item securely and keep your postage receipt.

When you'll get your refund For faulty or misdescribed items we'll refund [on the first carrier scan / when we receive the item] to your original payment method. For change-of-mind returns we'll refund when we receive and check the item, usually within [number] business days.

Items we can't take back for change of mind [List specific items and reasons.] This doesn't affect your rights if the item is faulty or not as described.

Contact us [Email, phone, response time.]

Why the separation matters

By separating "something is wrong" from "I've changed my mind", you protect yourself in both directions. You do not promise change-of-mind refunds you cannot afford, and you do not deny rights the law gives. A reviewer reading it can see you offered what the law requires.

What mistakes should a return policy avoid?

"No refunds" or "all sales final"

The ACCC says "no refund" signs and terms do not override consumer rights, and relying on them for faulty goods is illegal. A blanket statement is the quickest way to turn a simple fault into a dispute.

"Exchange or store credit only" for faulty goods

For a major problem the customer chooses a refund or replacement. Store credit only does not meet that.

"Refunds minus a restocking fee" for faulty goods

The ACCC page says a major problem refund has no deduction for use. A fee on a faulty item is hard to defend.

"Customer pays all return postage" for faulty goods

The ACCC says you must reimburse reasonable return costs if a fault is confirmed.

"Original packaging required" for faulty goods

The ACCC says customers do not need original packaging.

"Contact the manufacturer"

The ACCC says you cannot send the customer to the manufacturer.

Contradictory numbers

Two different return windows on the same page invites an argument. Search your site for every mention of "days".

Link it at checkout and in the order confirmation, so you can show the customer was informed.

How does a refund policy work as dispute evidence?

Shopify's chargeback reasons page suggests, for credit not processed disputes, your refund and return policies, proof the customer was informed, emails, an explanation of why they were not entitled to a refund, or proof of an earlier refund. For product unacceptable disputes it suggests fulfilment details, tracking, product descriptions and photos, and proof the customer did not try to return the item or that a replacement was sent.

Your policy therefore matters in three ways.

As a statement of what you promised. The reviewer compares it with what you did.
As proof the customer was informed. Show where it appeared at checkout and in the order email.
As a sign of reasonableness. A policy that follows consumer law reads as fair.

What to save

A dated screenshot or PDF of every version of the policy.
The date each version went live.
A screenshot of the checkout page showing the policy link.
The order confirmation email with the policy link.

Files must be PDF, JPEG or PNG, up to 2 MB each and 4 MB in total, with one file per evidence type, and no links. See the chargeback evidence checklist.

Illustration: a policy that helps and a policy that hurts

A customer disputes a A$150 order as credit not processed. Fee: A$25.

	Policy A	Policy B
Wording	"Faulty items: we'll refund to your original payment method. Change of mind within 14 days: refund on receipt"	"No refunds on any sale"
Shown at checkout?	Yes, screenshot saved	Footer only
Dated copy?	Yes	No
Reviewer's reading	Customer did not follow the process or was not entitled	A blanket exclusion that may breach consumer law
Your position	Reasonable	Weak, and a risk to your credibility

The money is the same, A$175 with the fee. The difference is whether your evidence helps or hurts. These are illustrative, and the card issuer decides each case.

How do you decide your change-of-mind terms?

Change of mind is where you have freedom. Choose terms that match your margins and customers.

Four questions to set the policy

Do you offer it at all? You are not required to. If you do, you must honour it.
How many days? Longer windows build trust and increase returns.
Who pays return postage? Free returns cost more and reduce abandoned carts. Customer-paid returns reduce returns.
Refund or store credit? A refund is simpler and creates fewer disputes. Store credit keeps the revenue. Be clear which.

Illustration: the cost of a change-of-mind policy

Assume 400 orders a month at A$120, and a 6% return rate for change of mind. Return postage is A$10 each if you pay, and the returned goods are resellable.

Item	Amount
Returns per month	24
Refunds issued, 24 × A$120	A$2,880
Return postage, 24 × A$10	A$240
Sales kept by store credit instead, say 30%	about A$864 retained

These figures are made up to show how to model your own. The key is to decide the terms from your numbers, not from a template. A policy you cannot afford will be the one you try to avoid honouring, and an unhonoured policy is the one that ends in a dispute.

Our post on change-of-mind refunds goes deeper on this, and the post on major vs minor failure explains how to classify faults.

What should you do about refund timing?

Customers dispute when they are waiting. Set a timing you can meet and say it.

Say when the refund is issued in the policy and the return approval email.
For faults, consider refunding on the first carrier scan rather than on receipt. It avoids freezing an honest customer's money while a parcel travels. See customer return lost in the post.
For change of mind, refund on receipt and check items promptly.
Email the customer the moment the refund is issued, with the amount and method.

Banks take time too. We could not verify how long a refund takes to show on a customer's statement for Shopify Payments, so say "it may take several business days to appear" and avoid promising a date you do not control.

Refunds and fees

Shopify's international fees page says card fees and conversion fees are not returned on refunds. We did not verify how this applies to domestic Australian sales on your plan, so check your own fee statements before you decide whether to offer free returns.

Worked scenarios: what your refund policy should say

A refund policy proves its worth in the awkward cases. These five come up in almost every store. The amounts are assumed.

Scenario 1: the item stopped working after two weeks

A customer bought a A$150 item. It stopped working after 14 days and your change-of-mind window is 14 days. They ask for a refund.

What the policy should say: the change-of-mind window is irrelevant to a fault. The ACCC says a failed consumer guarantee means you must offer a repair, replacement or refund. If the fault is serious, the customer chooses a refund or replacement. If it is minor, you repair. Your return policy should say so in the "something is wrong" section.

Scenario 2: the wrong colour, as described

A customer ordered a A$80 item and says the colour is not what they expected, but your photos and description match what you sent.

What the policy should say: this is change of mind or a preference, not a fault. Your return policy offers a change-of-mind refund within [number] days if the item is unused, and that is what you honour. Keep the product page screenshot as evidence that it was described accurately.

Scenario 3: the item arrived significantly different from the listing

A customer ordered a A$200 item listed as solid timber and received a veneer. The ACCC includes "significantly different from its description or sample" in its list of major problems.

What the policy should say: the customer may choose a refund or replacement, and you cannot deduct for use. Accepting quickly is usually cheaper than a dispute.

Scenario 4: the return outside the window

A customer wants to return a A$60 item for change of mind on day 25 of a 14 day policy.

What the policy should say: your return policy decides, and you are not required to accept it. A polite refusal that quotes the policy, plus a goodwill option such as store credit, usually keeps the customer. Keep the exchange, because it is evidence if they dispute.

Scenario 5: the refund that's already been issued

A customer disputes a A$130 order as credit not processed, but you refunded them 10 days ago.

What the policy should say: the policy states when refunds are issued, and Shopify's records show the refund. Shopify attaches refund records, and suggests proof of an earlier refund as evidence. Your policy, the refund date and amount, and the email you sent form the pack.

How do you publish and version your refund policy?

How you publish it decides whether it works as evidence. We did not verify the exact steps in the Shopify admin, so check where your store keeps its policy pages and how it links them at checkout.

Publish one canonical page and link to it from the footer, checkout and order emails.
Remove duplicates. Product pages, FAQs and old blog posts often hold older versions of the return policy.
Add a "last updated" date at the top of the page.
Save a dated PDF or screenshot every time you change anything.
Name the files by date, such as "refund-policy-2026-10-09.pdf".
Record why you changed it in a short log.

Illustration: the policy change log

Date live	Change	Reason
9 Oct 2026	Added separate section for faulty goods; removed "all sales final"	Align with consumer guarantees
9 Oct 2026	Change-of-mind window set to 14 days	Match margins
1 Dec 2026	Added prepaid return label for faults	Reduce disputes on lost returns

A log like this answers the reviewer's question "which version did the customer see on the day they ordered?" in seconds. Without it you are guessing.

What should a refund policy say for different product types?

The consumer guarantees apply to all goods, but the practical questions differ by product. We have not reviewed the rules for every category, so treat this as a prompt for your own checks.

Product type	Think about
Standard physical goods	The core template works
Perishables and consumables	Faults and safety come first. Say how to report a problem quickly
Clothing and shoes	Sizing and fit fall under change of mind unless misdescribed. Say what you accept
Electronics	Faults are likely to be the main issue. Make the fault process clear
Digital goods	Delivery is instant, so state what counts as a fault
Custom and made-to-order	Covered in our separate post on sale items and custom orders
Pre-orders	Covered in our separate post on pre-orders and backorders

For each, write the "something is wrong" section first, then decide what, if anything, you offer for change of mind.

How often should you review the policy?

Review it four times a year, and any time you see a pattern of disputes.

Read it as a customer. Can you find the answer to "can I return this?" in thirty seconds?
Read it as a regulator. Does anything contradict the ACCC's guidance?
Read it as a reviewer. Would it help or hurt in a credit not processed dispute?
Check the numbers. Does every mention of days match?
Compare with practice. Are you honouring what it says? If not, change the policy or the practice.
Save the new version with its date.

A policy that you review is a policy you can defend.

How do disputes and refunds interact?

A policy does not stop a customer going to their bank, but it shapes what happens when they do.

Inquiry: Shopify says a full refund ends it. A partial refund does not. Refund before the chargeback stage if the customer is entitled.
Chargeback: Shopify says an open chargeback cannot be refunded. You respond with evidence or accept.
Rate: Every dispute counts toward your chargeback rate, whether you win or lose. See Shopify chargeback rate and account health.

Our guide to accepting or fighting a dispute shows how to weigh a case when the policy and the facts point in different directions.

What's different for Australian merchants?

The law sets the floor. The consumer guarantees apply to your sales in Australia, and your policy cannot take them away.

The regulator publishes plain-language guidance. The ACCC's page, dated 21 July 2026, is the best single source for the rules above. Read it in full.

Customers have other routes. Consumer Affairs Victoria says customers can go to AFCA if their bank rejects a chargeback request, and CHOICE reports that a retailer can end up refunding through a chargeback even if it first refused.

Long cardholder windows. NAB gives cardholders up to 120 days for Visa and Mastercard disputes, varying by reason, and 210 days for eftpos. Keep policy versions for months.

Dates and money. Use A$ and full dates when you note policy versions, such as "version live from 9 October 2026".

A checklist to test your policy

There is no "no refunds" or "all sales final" wording
Faulty, unsafe and misdescribed goods are covered in their own section
The policy says the customer may choose a refund or replacement for a major problem
No restocking fee, packaging requirement or manufacturer referral applies to faulty goods
Reasonable return costs for a confirmed fault are covered
Change of mind terms, if offered, are specific and you can afford them
The return process and contact details are clear
Refund timing and method are stated
Every number of days is consistent across the site
The policy is linked at checkout and in the order confirmation
A dated copy is saved for each version
Someone with legal knowledge has read it, if your products are unusual

What we could not verify

Any ACCC page on exact refund policy wording. We used its repair, replace, refund, cancel page.
How to set up Shopify's policy pages, and what templates they offer. Check your admin.
How long refunds take to appear on a customer's statement.
How domestic fees are treated on refunds. Shopify's international fees page says card and conversion fees are not returned.
How a card issuer weighs a policy against a customer's claim.
State or territory rules. We reviewed national guidance only.

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

Frequently asked questions

What should a refund policy for a Shopify store in Australia say?

It should separate faulty or misdescribed goods, where the Australian Consumer Law gives rights, from change of mind, which is your choice. State the return process, who pays, the refund method and timing, and your contact details. Avoid "no refunds" wording and keep dated copies.

Can I say "no refunds" on my Shopify store?

No, not for faulty goods. The ACCC says "no refund" signs and terms do not override consumer rights, and relying on them for faulty goods is illegal. You can limit change-of-mind refunds in your return policy, and you should say so clearly, but you cannot remove the legal remedies the law gives customers.

Do I have to offer change-of-mind refunds?

No. The ACCC says change of mind is not covered by the consumer guarantees. If you do offer a change-of-mind policy, you must honour it, so only promise what you can afford, state the window and conditions clearly, and apply them the same way every time.

Who pays for return postage on a faulty item?

You do, for reasonable costs. The ACCC says you must reimburse reasonable return costs if a fault is confirmed, 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.

Can I charge a restocking fee?

Not on a faulty item with a major problem, where the ACCC says there is no deduction for use. For change of mind you can set your own terms, such as a restocking fee, if you state them clearly in advance and apply them consistently.

Does my refund policy help in a chargeback?

It can. Shopify suggests refund and return policies, plus proof the customer was informed, as evidence for credit not processed disputes. A policy only helps if it is clear, was visible when the order was placed, and is consistent with consumer law.

Do customers need the original packaging?

Not for a faulty item. The ACCC says customers do not need original packaging, and you may ask for proof of purchase. For change-of-mind returns you can require original condition or packaging if your return policy says so and you apply it fairly and consistently.

Should I refund to the original payment method?

For a major problem, the ACCC says the refund goes to the original payment method. For change of mind you can set your own terms, but refunding to the original method avoids disputes with the bank. Say clearly in the policy what you will do and when.

How long should I keep old versions of my policy?

Keep them at least as long as the cardholder's dispute window, which is often up to 120 days and sometimes longer. We could not verify a legal retention period for business records, so ask your accountant. Dated copies of each refund policy version are what make it usable as evidence in a dispute.

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