A dispute notice from Shopify can be an inquiry or a chargeback, and they are not the same thing. This guide explains the difference, what happens to your money in each case, and what your options are.
Two ways a bank can open a dispute
When a customer contacts their bank about a charge, Shopify's help center says the bank can start either a chargeback or an inquiry. The main difference is what happens to the funds while the bank looks into it.
| Inquiry | Chargeback | |
|---|---|---|
| Funds | Not taken during the investigation | Disputed amount withdrawn right away |
| Fee | No chargeback fee taken at this stage | Chargeback fee withdrawn with the amount |
| Refunding | You can refund the order | You cannot refund once it is opened |
| If it goes against you | It might escalate to a full chargeback | You keep neither the amount nor the fee |
What to do with an inquiry
With an inquiry you can still settle things directly. Shopify lists three options.
- Contact the customer: If they agree to drop it, they need to ask their bank to cancel the inquiry. Ask for the bank's withdrawal letter and submit it as evidence.
- Add evidence: Show that the charge was valid, the same way you would for a chargeback.
- Refund in full: A full refund ends the inquiry. Then submit evidence that the refund was issued.
A full refund during an inquiry means the cardholder cannot start a chargeback on that order. A partial refund does not prevent a full chargeback.
What to do with a chargeback
With a chargeback the money has already left your balance. You either respond with evidence before the due date or accept it.
- Respond: Open the order and use the chargeback response form. You usually have 7 to 21 days.
- Accept: Submit no evidence, or accept from the evidence form. The amount goes back to the customer and the fee is not returned to you.
- Do not refund: Shopify says you cannot refund an order after a chargeback is opened. The customer would need to withdraw the chargeback first.
For the evidence side, see how to respond to a chargeback on Shopify.
How long each takes
Neither is quick. Shopify says a chargeback review can take up to 75 days after you submit, and an inquiry usually takes 65 to 75 days and might take longer.
- Inquiry closed in your favor: No action is required
- Chargeback won: The amount and the fee are returned to you
- Chargeback lost: The bank's decision is final and cannot be appealed
Things that catch merchants out
A customer telling you they canceled the dispute is not enough. Shopify advises submitting evidence anyway, because the dispute can stay active in your admin until the bank closes it.
- ✅ Submit the bank's withdrawal letter as evidence
- ✅ Respond before the due date shown on the dispute
- ❌ Do not rely on a screenshot of a bank statement, Shopify says it is not sufficient
- ❌ Do not assume a won chargeback disappears, it still counts toward your dispute rate
Shopify's current wording is on its chargeback process page.
Doing this at scale
Whether it is an inquiry or a chargeback, you will be asked why the order was valid. RiskClarity reviews each paid order, recommends allow, verify or hold, and logs every decision in an audit log you can export for chargeback disputes. See RiskClarity.