You refunded the customer on a Monday. You even wrote them a kind note. On Friday, a Shopify notice tells you that same customer has told their bank the refund never came, and the money has already left your balance. This is the most frustrating kind of credit not processed chargeback, because you did the right thing and still got charged for it. This guide shows how to prove a refund, how to handle the cases where you really did not owe one, and when to simply let it go.
Quick answer: A credit not processed chargeback means the customer says they were promised a refund or credit and never received it. Shopify says you cannot issue a refund once a chargeback has begun, so the response is evidence: proof the refund was issued before the dispute, or proof no refund was owed under a return and refund policy they were shown. Shopify also adds your refund records and return policy for you, but the case is stronger with a dated refund record, the customer's messages and the policy as shown at checkout.
This guide is for you if:
- You sell on Shopify Payments from Canada and a customer claims a refund or return credit never arrived.
- You already refunded the order and want to know what proves it to a bank.
- You are unsure whether to fight a dispute about a return, a restocking fee or a partial refund.
Last updated: 22 October 2026
Disclosure: ChargeFix publishes this guide and sells an app that helps with Shopify Payments disputes. The Shopify rules below come from Shopify's Help Center, and the card network details come from published explainers, all listed under Sources. We say so plainly where nothing is published for Canada.
TL;DR
- Shopify says to contact the customer first. A refund you already issued can often settle the matter in one message.
- You cannot refund a chargeback once it has begun. You can refund an inquiry, and refunding it in full stops a chargeback from following.
- The evidence Shopify names is a refund record dated before the chargeback, or proof no refund was owed, plus your refund and return policies and any related emails.
- Credit not processed disputes often start from a gap in time. A refund can be real and still not be visible on the customer's statement yet.
- A partial refund does not block a chargeback, so explain the amount in writing before the customer's bank does.
Do this today
- Open the dispute and write down the due date, the amount and the order number.
- Check the order in Shopify admin for the refund record and its date.
- Save the refund confirmation email you sent, and any return tracking, as PDFs.
- Email the customer, quote the refund amount and date, and ask them to check with their bank.
- If there is no refund and none was owed, collect your return policy and the checkout screenshot that shows it.
Credit not processed chargebacks in Canada: the process in one table
| Step | What you do | Why |
|---|---|---|
| 1. Read the dispute | Reason, amount, order, due date | The window is 7 to 21 days with no extensions |
| 2. Find the refund | Order timeline, refund amount, date | A refund before the dispute is your best proof |
| 3. Find the return | Return label, tracking, received date | Shows whether the item came back |
| 4. Contact the customer | Quote the refund date and amount | Many cases end with a withdrawal |
| 5. Decide | Fight, concede, or ask for a withdrawal letter | Refunds are not possible once a chargeback begins |
| 6. Build the response | Refund proof, policy, customer emails | Strongest proof first |
| 7. File | Before the due date | The fee is not returned if you miss it |
What is a credit not processed chargeback?
A credit not processed chargeback is a dispute where the cardholder tells their bank that a refund or credit they were owed never arrived. Shopify lists it as its own reason on the chargeback reasons page, next to duplicate charges, fraud, product not received and the rest. A credit not processed dispute sounds like a simple question about money, yet it hides several very different stories.
| What really happened | Example | What decides it |
|---|---|---|
| Refund issued, not visible yet | You refunded on Monday, the customer checks on Wednesday | Dated refund record and time |
| Refund never issued | A return arrived and nobody processed it | Honest answer: you owed it |
| Partial refund, customer expected full | You deducted a restocking fee | Policy shown at checkout |
| Return never received | Customer says they sent it back | Return tracking |
| Store credit given, customer wanted money | You offered credit, they wanted cash | Your written policy and the messages |
| Not entitled | Final sale item, or outside the return period | Policy and the date |
The last two rows are where good policies pay off, and the first two are where good habits do. If you owed the refund and did not send it, a credit not processed dispute has no clever response. Shopify's rule for duplicate charges applies in spirit here: if the mistake was yours, accept it. The skill is knowing which row you are in before you spend an evening on the case.
What does Shopify say to submit for a credit not processed dispute in Canada?
Shopify's reasons page names the evidence directly. It tells you to try to resolve the matter with the customer first, and if they agree it is settled, to include proof of that agreement. Otherwise, you submit proof that you issued the refund before the chargeback, or proof that the customer was not entitled to one. Supporting items are your refund and return policies, evidence of when and where the customer was told about them, and any related emails.
The page also makes a point that surprises many merchants. You can issue a refund while a dispute is still an inquiry, but you cannot refund after it has become a chargeback. So a refund you meant to send after the chargeback began cannot be sent. The way out is for the customer to ask their bank to withdraw the dispute.
| Evidence | What it shows | Where to find it |
|---|---|---|
| Refund record | Amount, date and time of the refund | Shopify order timeline |
| Refund confirmation email | The customer was told | Your email or Shopify notification log |
| Customer messages | What they asked for and when | Email, saved as PDF |
| Return and refund policy | The rules that applied | Policy page, saved with date |
| Checkout screenshot | The customer saw the policy | Checkout flow screenshot |
| Return tracking | The item travelled back | Carrier records |
| Return received note | You got it, and when | Your receiving log |
Shopify says it adds some of this on its own. For credit not processed disputes, it includes refund records and your return policy in what it submits. That helps, but it is a starting point. A refund record on its own does not show that the customer was told, and a policy on its own does not show the customer saw it at the right time.
Files must be PDF, JPEG or PNG, up to 2 MB each and 4 MB combined, with one file per evidence type and no links. So a link to your return policy proves nothing. Save the page as a PDF, dated, and attach the file.
Why do customers file a credit not processed dispute after you refunded?
This is the question that makes merchants angriest about a credit not processed dispute, so it deserves a straight answer. In most credit not processed disputes the customer is not lying. They are confused, impatient, or reading their statement at the wrong moment.
A refund is not instant on the customer's side. Shopify sends the credit, then the customer's bank decides when to show it. Between those two points the customer can look at their statement, see the original charge and no matching credit, and call the bank. If the bank's agent tells them they can dispute it, many people do. The refund lands two days later and the credit not processed dispute is still open.
There are other, more ordinary reasons.
- A refund to a different card. The customer paid with a card that has since been replaced, so the credit appears on a card they no longer check.
- A refund that is smaller than they expected. Shipping, a restocking fee or a deducted discount makes the credit lower than the original charge, and they read the difference as missing money.
- Two orders, one refund. They bought twice and returned once.
- A silent refund. You issued it but never told them, so they assumed nothing happened.
The silent refund is the one you can fix tomorrow. A one-line email saying "your refund of C$84.50 was issued today, and most banks show it within a few business days" removes the most common cause. Shopify's prevention page says the same thing in its own words: issue refunds as soon as possible, since unprocessed credits lead to credit not processed chargebacks.
There is also a time rule worth knowing. Visa's published rule, as summarized by chargeback.io (a global description, not a Canadian one), lets the issuer file a credit not processed claim up to 120 calendar days from the original transaction or the credit slip date, whichever is later. It also says the issuer waits at least 15 days after a return date before claiming. So a late dispute is not strange, and an early one after a return may be premature. Shopify's own deadline, 7 to 21 days to respond, is what controls you. The summary does not give Canadian figures, so treat these as the global rule, not a promise about any one Canadian bank.
How do you prove a refund was issued?
The best single exhibit is a record that shows the refund before the dispute began. Shopify's order timeline shows the refund, the amount and the time. Your payments data shows the refund too. Chargeback.io describes the equivalent for other processors as a settlement report or a letter from the acquirer showing the posting date, and says that one document often wins the case.
For a Shopify store, assemble three pieces and keep them in order.
- The refund record. Print or screenshot the order timeline so the refund amount and date are readable. Save as PDF.
- The notice to the customer. The refund confirmation email, with its sent date visible.
- The customer's side. Any reply that says the item was returned, the refund was expected, or the issue was settled.
Refund proof sheet (one page per order)
Order #: ________ Order date: ________ Total: C$________
Dispute received: ________ Response due: ________
Refund issued
Amount: C$________ Date and time: ________
Method: original payment card
Shown in: Shopify order timeline (file 1)
Customer told
Email sent: ________ Subject: ________ (file 2)
Return (if any)
Label issued: ________ Tracking: ________
Received: ________ Condition: ________ (file 3)
Customer messages: ________ (file 4)
Policy as shown at checkout: ________ (file 5)
If the refund was issued after the dispute began, be careful. A refund against an open inquiry is allowed, but a refund against an open chargeback is not. If a credit shows up in your records dated after the chargeback, it may be a different transaction or a mistake, so check it before you quote it.
What if you only refunded part of the order?
A partial refund is a common cause of credit not processed disputes, and Shopify draws a line here. On an inquiry, a full refund blocks a chargeback, while a partial refund does not. So a customer who got a partial refund can still escalate if they believe they were owed more.
The fix is clarity before and after. Before: your return policy should say, in plain words, what is deducted and when, such as return shipping or a restocking fee. After: your refund email should show the arithmetic.
| Original order | Deduction | Refund | What to say |
|---|---|---|---|
| C$120.00 | Original shipping C$12.00 (per policy) | C$108.00 | "Shipping is non-refundable under our policy, shown at checkout." |
| C$65.00 | Restocking fee 10% | C$58.50 | "Returns of opened items carry a 10% fee, as stated in the policy." |
| C$200.00 | Damaged on return | C$150.00 | "We received it with damage; photos attached." |
A deduction only helps if the customer saw it at checkout. A policy that appears for the first time in your dispute response is weak. A policy that appears in a dated checkout screenshot is strong. Shopify's list asks when the customer was told, and where, so keep that question in mind when you save your documents.
What if the customer says they returned the item in a credit not processed dispute?
This version of a credit not processed dispute is common after a busy sale. The customer insists the parcel went back. You have no record of receiving it. The dispute arrives with "credit not processed" because they believe they are owed money.
Start with the return label. If your store issued the return label, you already have a tracking number, and the carrier's record shows whether it arrived. A return label from Canada Post shows delivery confirmation in the same way an outbound parcel does, and the PDF is online for 45 days after delivery (see our guide to Canada Post proof of delivery). If the customer used their own label, you may have nothing.
Three situations come up, and each calls for a different answer.
| Situation | What it means | Your move |
|---|---|---|
| Label issued by you, tracking shows delivered to you | You received it | Check the receiving log, find it, refund and thank them |
| Label issued by you, tracking shows stalled | The parcel is stuck | Contact the carrier, treat the refund as owed once it is back |
| Customer's own label, no tracking | No proof anything was sent | Say what your policy required, ask for any receipt |
If tracking shows the item reached your door and you have no refund on file, you probably owe the refund. Issue it now if the dispute is still an inquiry. If it has become a chargeback, you cannot refund, so the practical options are to concede or ask the customer to withdraw the dispute.
If your policy required a tracked return and the customer did not use one, the policy is your evidence. But a policy only counts when the customer was told. Keep the habit of putting the return rules on the order confirmation email as well as the policy page, since that email is a dated record the customer received.
Do store credit and gift cards cause credit not processed chargebacks?
Many credit not processed disputes are about expectation. The customer expected money on their card and got a gift card, a store credit or an exchange. They file a credit not processed dispute because no credit appears on their statement.
Three habits keep these cases clean.
- Name the remedy before you grant it. If your policy only allows store credit on a late return, say so at the point of sale.
- Get the customer's agreement in writing. "Please confirm you would like store credit instead of a refund to your card" takes ten seconds and creates a dated acknowledgment.
- Do not call it a refund. If you issue store credit, call it store credit in every email.
Shopify ranks customer acknowledgment right behind direct proof in the evidence order it suggests: direct proof first, then acknowledgment, then policy, then context. A short email in which the customer chooses store credit is acknowledgment. It will do more for you than any amount of policy text.
If the customer later says "I never agreed", you hold the email. If you have no email, the case rests on your policy, and that is weaker.
Is it worth fighting a credit not processed chargeback? A worked example in C$
Say a customer returned a C$96.00 jacket. The return is in your hands, but you forgot to process the refund for eleven days. The customer filed a dispute on day nine. You now have a chargeback, which means the disputed amount and the C$15 fee are already debited.
You owed the refund. The honest options are to concede, or to ask the customer to withdraw so you can refund them properly. A response arguing that you did nothing wrong would be false, and false statements cost credibility with the review.
Now take a different order, a C$140 order where you issued the refund on 3 October and the customer disputes on 9 October.
Case A: refund was issued before the dispute (fill in)
Disputed amount = A = C$140.00
Fee = F = C$15.00 (returned only on a win)
Time to respond = T = 1 hour, call it C$30
Chance of winning = c = 0.85 (strong, dated refund proof)
Concede: loss = A + F = C$155.00
Fight: (1 minus c) x (A + F) + T = 0.15 x 155 + 30 = 23.25 + 30 = C$53.25
53.25 < 155, so fight.
Case B: you did not issue the refund and the item was returned
Concede: loss = A + F (the refund you owed, plus the fee)
Fight: c is very low, and a false claim harms the next case
Concede, then fix the process.
The formula is the same, but the estimate of c changes everything. With a dated record, c is high. With no record, c is close to zero. If you are unsure, imagine handing the file to a stranger and asking whether they can see the refund. If the answer is no, you are not yet ready to file.
What does a strong credit not processed chargeback response contain?
Picture the response for Case A. It has five files, in Shopify's suggested order.
| File | Content |
|---|---|
| 1. Refund record | Order timeline showing the C$140.00 refund, 3 October |
| 2. Refund email | Confirmation sent to the customer, with date |
| 3. Customer reply | The customer wrote on 5 October: "Thanks, I'll watch for it" |
| 4. Policy | Return and refund policy page, dated |
| 5. Checkout screenshot | Policy link visible at checkout |
Every file answers a question a reviewer might ask: was a refund issued, when, was the customer told, did they acknowledge it, and did they know the rules? That is the whole case. Notice that nothing in it argues. It lets the dates speak.
A weak credit not processed response looks like the opposite. It says "we refunded this" with no record, includes a policy that was never shown to the customer, and attaches three screenshots of unrelated emails. Reviewers read thousands of these. The ones that show a date next to an amount tend to be remembered.
How do you write the response to a credit not processed chargeback?
Lead with the refund facts, then the policy, then the conversation. Keep it short and factual.
Draft reply to a credit not processed chargeback (adapt to your case)
Order #[number], placed [date] for C$[amount].
Summary
The customer states a refund was not received. Our records show a refund
of C$[amount] was issued on [date and time], [number] days before this
dispute was opened.
1. Refund record
Refund issued [date and time] to the original payment card. Order
timeline attached (file 1).
2. Notice to the customer
Refund confirmation emailed on [date] (file 2).
3. Return (if any)
Return label issued [date]. Tracking [number], delivered to us [date]
(file 3).
4. Policy
Our return and refund policy was displayed at checkout (file 4, file 5).
It states [one sentence that matters].
5. Customer communication
[Date]: the customer wrote [summary]. [Date]: we replied [summary]
(file 6).
Write only what the files show. If you did not email the customer, do not say you did. A response with one unsupported claim can sink the rest.
How do you prevent credit not processed chargebacks?
Most credit not processed disputes are process failures, not bad actors. A short routine removes them.
| Step | Why it helps |
|---|---|
| Refund the day the return arrives | Shopify says to issue refunds as soon as possible |
| Email the customer when you refund | Removes the "silent refund" cause |
| State the amount and the card | The customer can match it on their statement |
| Say when banks usually show credits | Sets expectations without promising a date |
| Process returns in a fixed daily slot | Nothing sits in a box for eleven days |
| Show the return policy at checkout and in the order email | Dated proof the customer saw it |
| Reply to "where is my refund" within a day | The dispute route is less tempting |
Refund email (copy and adapt)
Subject: Your refund for order #[number]
Hi [first name],
We have issued a refund of C$[amount] to your original payment card
today, [date]. It can take a few business days for your bank to show
it, depending on the bank. Your statement will show the credit as
[descriptor].
If it has not appeared after [number] business days, reply to this
email and I will look into it the same day.
[Name], [store]
Notice what the email does not do. It does not promise a specific delivery day, because that depends on the bank. It gives the amount, the date, the descriptor and a way to reach you. That last line matters, because a customer with a person to write to is less likely to phone their bank.
Preventing credit not processed chargebacks also protects your rate. Visa's excessive threshold is 1.5% from April 2026 in the US, Canada, the EU and Asia Pacific, according to chargeback.io, and Shopify can enrol a store in its network dispute resolution program at 1.5% over 90 days. Shopify says a resolved dispute still counts, and the bank can dispute a won case again, so winning does not erase the mark.
How does ChargeFix help with credit not processed chargebacks?
This dispute type leans on records that already sit in your store, so an app can do much of the gathering. ChargeFix is built for Shopify Payments disputes.
- Dispute fetched. ChargeFix fetches the chargeback when it opens.
- Records read. It reads the order, the refund history, the payment details and any tracking from your store.
- Evidence scored. It checks whether a dated refund exists before the dispute, flags the gap if it does not, and gives a plain verdict: worth fighting, improve the evidence first, or weak evidence.
- Letter from facts. The response is drafted only from verified facts, so it will not invent a refund date.
- Your choice of mode. ChargeFix prepares each response in Manual mode, which is the default. You review and file it, or let Auto mode handle them. Auto mode is on Starter plans and above, off until you turn it on and confirm, and its default rule covers product not received with delivery confirmed. Credit not processed cases are saved as drafts for you to look at.
ChargeFix handles Shopify Payments disputes only. It cannot promise a win, because the card company decides, and it cannot create a refund record that does not exist. It stores minimal data: case ID, amount, reason, status, dates and shop settings. The free plan includes 2 filings a month, and every paid plan starts with a 14 day free trial.
What does a dated plan for a credit not processed chargeback look like?
This plan assumes the shortest window, 7 days.
| Day | What you do | Done when |
|---|---|---|
| Day 0 | Dispute opens. Note amount, order and due date. | You know the deadline |
| Day 1 | Find the refund record and return tracking | Both saved as PDF |
| Day 2 | Email the customer with the refund date and amount | Message sent and saved |
| Day 3 | Decide: fight, concede or ask for a withdrawal letter | Decision written down |
| Day 4 | Draft the response, strongest proof first | Every claim points to a file |
| Day 5 | Check file sizes and readability | Under 2 MB each, 4 MB total |
| Day 6 | File the response | Confirmation shows in admin |
| Day 7 | Spare day | Nothing left to do |
| Up to 75 days later | Decision arrives | Record the cause for your next review |
If the customer agrees on Day 2, ask them to request a withdrawal from their bank. The letter must be on bank letterhead, show the case number and confirm the charge and the cancellation. A statement screenshot is not enough. Withdrawals can take 30 to 90 days, so do not wait for one before you file.
What is different about credit not processed chargebacks in Canada?
A few points shift for a Canadian store on Shopify Payments.
| Topic | What applies in Canada | What to do |
|---|---|---|
| Fee | C$15 or US$15 by payout currency | Cost each case in your payout currency |
| Response window | 7 to 21 days, no extensions | Plan for the shortest |
| Card company decision | Up to 75 days after you submit, and final | Do not expect a quick answer |
| Shopify Protect | US stores only, fraud and unrecognized reasons only | It does not cover this reason |
| Complaints | Shopify Payments (Canada) acknowledges within 5 business days, decides in writing within 45 days | Raise a complaint with your processor first |
| Provincial rules | Consumer protection rules differ by province | Check yours before you write refund terms |
Check your provincial rules. Provincial consumer protection law can affect what you must refund and when, and rules differ across Ontario, British Columbia, Alberta and Quebec. This guide does not give you a legal deadline for refunds, because no source we used sets one. If you sell in more than one province, ask a lawyer or your provincial consumer office before you set restocking fees or final sale terms.
Quebec. If you sell to Quebec customers, write the policy in a way they can read. A policy that a customer cannot read in their language is a weak exhibit.
Where to complain. Shopify Payments (Canada) acknowledges a complaint within 5 business days and gives a final written decision within 45 days. The Financial Consumer Agency of Canada supervises the Code of Conduct for the Credit and Debit Card Industry in Canada but does not decide individual disputes.
What are the 10 mistakes to avoid with credit not processed disputes in Canada?
- Refunding without telling the customer. A silent refund looks like no refund. Send the email the same day.
- Waiting to process returns. Eleven days in a box turns a return into a dispute.
- Trying to refund after the chargeback began. Shopify does not allow it.
- Sending a policy that was never shown. Evidence of when and where the customer was told is what counts.
- Quoting a refund date you cannot show. Use the order timeline, not memory.
- Skipping the customer. Contacting them first ends many cases.
- Offering store credit without asking. Get the customer's agreement in writing.
- Fighting a refund you really owed. A false claim costs more than the dispute.
- Attaching links. Links are not allowed. Save pages as PDF.
- Never checking the pattern. Repeated credit not processed chargebacks point to a slow return routine, not bad luck.
Frequently asked questions
What is a credit not processed chargeback?
It is a dispute where the cardholder tells their bank a refund or credit they were owed never arrived. Shopify advises contacting the customer first. If that fails, you submit a refund you can date before the dispute, or proof they were not entitled to one, along with your policies. The card company then decides.
Can I refund the customer after a chargeback has started?
No. Shopify says you cannot refund once a chargeback has begun. You can refund while it is still an inquiry, and refunding an inquiry in full stops a chargeback from following. After a chargeback, the route is a withdrawal letter from the customer's bank, which can take 30 to 90 days.
What proof does Shopify want for credit not processed?
Shopify names proof that you issued the refund before the chargeback, or that none was owed, plus your refund and return policies, proof the customer saw them, and related emails. Shopify adds refund records and your return policy automatically, so add dated emails and screenshots.
What if I already refunded the customer?
For a credit not processed dispute, show the refund record with its date, the confirmation email and any customer reply. The refund must predate the dispute to count as proof. Explain that banks can take several business days to show a credit, and ask the customer to check their statement. Many withdraw once they see it.
Does a partial refund stop a chargeback?
No. Shopify says refunding an inquiry in full blocks a chargeback, while a partial refund does not. If you refunded less than the full amount, explain the deduction in writing and show the policy that allowed it, ideally with a dated checkout screenshot proving the customer saw it.
What if the customer says they returned the item?
When a credit not processed dispute is about a return, check whether you issued the return label and what tracking shows. If the parcel reached you, find it in your receiving log and refund it. If the customer used their own label and sent no proof, point to your policy. If you owed the refund and the dispute is already a chargeback, concede.
Does store credit count as a refund?
Not unless the customer agreed to it. Many disputes arise because the customer expected money on their card. If your policy allows store credit only, show it at checkout and get the customer's written agreement. Call it store credit in every email, so nothing reads as a refund that did not happen.
How long do banks take to show a refund?
It varies by bank, and the sources we used do not give a Canadian figure. Tell customers it can take a few business days, give the refund date and amount, and give them a way to write back. Avoid promising a specific day, since you do not control the bank.
Should I fight every credit not processed dispute?
No. Fight when you have a dated refund record or a policy the customer clearly saw. Concede when you owed a refund and did not send it. Use a simple sum with the disputed amount, the C$15 or US$15 fee and your time, and be honest about the chance of winning.
How does ChargeFix help with credit not processed disputes?
ChargeFix reads your order, refund history and payment details, checks whether a dated refund exists, scores the evidence and drafts the letter from verified facts. In Manual mode, the default, you check each draft and file it yourself. Auto mode is on Starter plans and above. It cannot promise a win.
Start free trial with ChargeFix
You now have the proof list, the refund routine and a response template for credit not processed chargebacks. What most stores lack is the time to pull the refund record, the customer emails and the policy together before the deadline. ChargeFix reads your Shopify order data, shows what is missing, writes the letter from verified facts and leaves the filing to you in Manual mode, with Auto mode there for the cases your own rules cover.
The free plan includes 2 filings every month, and every paid plan starts with a 14 day free trial. There is no cut of what you win, and no contract.
Ready to answer every credit not processed chargeback in Canada with a dated refund record? Start free trial
Sources
- Shopify Help Center, "Reasons for a chargeback or inquiry"
- Shopify Help Center, "Resolving a chargeback or inquiry"
- Shopify Help Center, "Responding to chargebacks and inquiries"
- Shopify Help Center, "Preventing chargebacks and inquiries"
- Shopify Help Center, "Network dispute resolution programs"
- Shopify Help Center, "Protecting an order with Shopify Protect"
- Shopify Payments (Canada), "Code of Conduct complaint handling"
- Canada Post, "Finding who signed for a package"
- chargeback.io, "Understanding Visa Chargeback Reason Code 13.6: Credit Not Processed"
- chargeback.io, "Chargeback statistics"
- ChargeFix, "chargefix.pro"
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