Chargeback

A chargeback is a card payment that your customer's bank reverses after the customer disputes the purchase. The amount goes back to the customer and you usually pay an extra fee. On Shopify Payments that chargeback fee is EUR 15 in Belgium and the Netherlands; if you win the dispute, you get the amount and the fee back. To see how chargebacks fit into your overall payment setup, read our guide to Shopify payments.

In short

A chargeback starts at your customer's bank. You provide evidence, the bank decides.

On Shopify Payments you lose the amount plus EUR 15 straight away, and get both back if you win.

iDEAL | Wero and Bancontact don't have chargebacks the way cards do.

How does a chargeback work on Shopify?

Customer disputes: the customer tells their card issuer that a payment is wrong.

Bank opens a dispute: the dispute reaches Shopify Payments through the card network.

Shopify withholds: the disputed amount and the EUR 15 fee are withheld immediately. In Belgium and the Netherlands, a negative balance is debited from your bank account outside your regular payout schedule.

You respond: you submit evidence through the order in your Shopify admin, usually within 7 to 21 days. The exact deadline is shown with the dispute.

Bank decides: this can take up to 75 days.

Outcome: if you win, you get the amount and the fee back. If you lose, both are gone.

There's also a lighter form: an inquiry. The bank first asks for more information and no money is withheld yet. If the inquiry closes in the customer's favour, it can still become a chargeback.

Why customers start a chargeback

Shopify distinguishes seven types: fraudulent transaction, product not received, product not as described, refund not processed, duplicate charge, cancelled subscription and a general category. Not every chargeback is fraud. Sometimes a customer doesn't recognise the name on their statement, or a delivery takes longer than expected.

What evidence do you provide?

Fraud: AVS and CVV match, consistent IP and device data, the 3D Secure result and proof of delivery to the billing address.

Not received: tracking, preferably with a signature, and the shipping address.

Refund not processed: your refund details, your returns policy and your communication with the customer.

Put your strongest evidence at the top. Shopify Payments adds order details and tracking automatically; you have to add emails and photos yourself.

Preventing chargebacks in your Shopify setup

Have the bank verify payments with 3D Secure. With an authenticated payment, liability for fraud chargebacks shifts to the customer's bank. That requirement comes from PSD2.

Review the fraud analysis on every order before you ship, especially for high amounts.

Ship with tracking and ask for a signature on expensive orders.

Show your returns and refund policy clearly in the checkout and in your confirmation email.

Track your chargeback ratio: a dispute you win still counts.

Watch for signs of card testing, such as many small failed payments in quick succession.

Shopify Protect, which protects Shop Pay orders against fraud chargebacks, only exists in the United States. In Belgium and the Netherlands you'll have to rely on the measures above.

Bancontact and iDEAL | Wero: no chargebacks

Chargebacks aren't possible with iDEAL | Wero. Bancontact is debited immediately and the customer can't cancel the payment; Stripe also states that Bancontact has no disputes. You resolve complaints about these payments with a refund in Shopify. A higher share of local payment methods therefore lowers your risk. Factor this into your choice of provider too: every payment provider handles disputes differently, and lost chargebacks belong in your total Shopify costs.

Frequently asked questions

What is a chargeback?

A chargeback is a payment that your customer's card issuer reverses after a dispute. The money goes back to the customer until the bank reaches a decision on the dispute.

How long does a chargeback take?

You usually have 7 to 21 days to submit evidence. After that, the bank's decision can take up to 75 days. An inquiry usually takes 65 to 75 days.

Can you win a chargeback on Shopify?

Yes. With strong evidence, such as signed proof of delivery or a successful 3D Secure check, the bank can decide in your favour. You then get the amount and the EUR 15 fee back.

How many chargebacks are you allowed on Shopify?

Shopify doesn't publish a fixed maximum. A high ratio can lead to reserves or held payouts, though, and card networks withdraw 3D Secure fraud protection above certain thresholds, at Visa from USD 7,500 in fraud chargebacks per month.