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Who is in the chain
| Party | Role |
|---|---|
| Cardholder | The person whose card was charged, or someone using that card. |
| Issuing bank | The cardholder's bank. It opens the dispute and later decides the evidence. |
| Card network | Visa, Mastercard, American Express, Discover. They define reason codes and time limits. |
| Acquirer / processor | Shopify Payments, Stripe, Square, or another acquirer. They notify you and relay evidence. |
| Merchant | You. You either accept the reversal or send evidence before the portal deadline. |
Chargeback versus refund
A refund is your decision, through your store or processor, on a timeline you control. A chargeback is the issuer's decision path. Funds often leave your balance when the dispute opens, a fee may apply, and the case usually counts toward your dispute rate whether you later win or lose. Stripe and Shopify both describe that rate as based on disputes received, not disputes lost.
Inquiries are not the same as chargebacks
Shopify distinguishes a chargeback (amount and fee withdrawn immediately) from an inquiry (no funds taken while the bank asks questions; it can still escalate). Stripe uses inquiry language mainly for networks that still have a pre-dispute stage. Visa and Mastercard often skip that stage. Respond to an inquiry with the same care as a chargeback; leaving it unanswered can become an unwinnable chargeback on some networks.
Why cardholders can do this
In the United States, cardholders have billing-error rights under the Fair Credit Billing Act. The CFPB explains that consumers generally must send a written notice within 60 days of the statement that first showed the charge. That consumer clock is not your merchant response window. Your clock is the due date in the processor dashboard, often measured in days after the processor was notified.
