What should I do if an Etsy buyer threatens a credit card chargeback for a lost package?

Hi! The safest way to handle this on Etsy is to keep everything in Etsy Messages, share the replacement tracking, and calmly steer the buyer toward Etsy’s normal resolution process (Help with order / a case) instead of a credit card chargeback—because once a chargeback is filed, Etsy generally can’t process a refund through Etsy, and an Etsy case can be closed if the buyer goes the chargeback route.

Here’s a buyer reply you can adapt (short, polite, and firm):

• “Thanks for your message—I'm on it. A replacement has already shipped and is currently in transit (tracking: ___). If you’d prefer not to wait for the replacement, let me know and I can discuss the next options. If you open a Help request/case on Etsy, Etsy can also review the order and may be able to cover a refund for qualifying ‘lost in transit’ orders. A credit card chargeback can slow everything down because it moves the dispute outside Etsy.”

Now, to protect your shop if they do file a chargeback:

1) Make sure your Etsy order record is airtight

• Confirm the original order shows it shipped on time (within your stated processing time).
• Make sure valid tracking is attached to the order (or that you used an Etsy shipping label).
• Keep all communication in Etsy Messages (no texting/emailing about the dispute).

2) Upload/keep proof for the replacement
Etsy doesn’t always “track” a replacement the same way as the original order, but you should still keep clear documentation:

• the replacement tracking number + carrier,
• the ship date,
• any carrier acceptance scan,
• a short Etsy Message to the buyer confirming those details (so it’s time-stamped on Etsy).

3) If they open an Etsy case (recommended path)

• Respond quickly inside the case with the tracking and timeline.
• If the order qualifies for Etsy Purchase Protection (commonly for “item not received / lost in transit” when you shipped on time with valid tracking and meet the other requirements), Etsy may refund the buyer while letting you keep your earnings. If the order doesn’t qualify, you may be responsible—so be ready to decide whether you’ll refund or wait for the replacement outcome.

4) If they file a chargeback

• Watch your email closely: Etsy may contact you and give you a deadline to provide info.
• Send Etsy everything you have (tracking for original + replacement, ship dates, screenshots/receipts, and the Etsy Messages showing you proactively sent a replacement).
• Don’t issue any “extra” refunds outside Etsy while the chargeback is in progress unless Etsy specifically instructs you to—chargebacks are designed to prevent double refunds, and Etsy’s ability to refund through the order can be disabled during the dispute.

One practical decision tip
If the buyer is escalating and the replacement is expensive, it can be worth contacting the carrier ASAP to attempt an intercept/return-to-sender (if possible) and then offering a refund once the package is successfully rerouted. That limits the chance you lose both the item and the funds.

If you tell me (1) the order total (roughly, under or over $250) and (2) whether you had Etsy tracking on the original shipment, I can suggest the best “case vs refund vs wait” approach for this specific situation.