Most buyers don’t know the difference between chargeback and refund, and most of the time, they use them interchangeably. But there is a considerable difference between the concepts of these terms, and only experienced merchants know that which one is lesser of two evils.
In this article, we have emphasized the difference between chargeback and refund by comparing these terms separately. Keep scrolling to read more.
This is a particular kind of payment in which if a buyer is not satisfied with the product and wants his payment back, he has to involve his card-issuing bank. If a buyer cannot identify a particular transaction, he can request a chargeback by involving the bank.
The chargeback dispute doesn’t involve the merchant directly, and the card-issuing bank defines the legitimacy of a chargeback. In most cases, the bank doesn’t take too much time to return the money, and the investigation starts shortly.
The merchant also has the authority to dispute the chargeback by presenting the evidence and proof of the transaction’s legitimacy, and he delivered his services and goods properly.
The chargeback occurs in the following cases.
A refund is a particular kind of payment a seller returns to the buyer, which was initially used for buying the goods or services of a seller. The buyer asks the seller for a refund if he is not satisfied with the services and that payment could be either partial or full.
These payments are comparatively more straightforward than a chargeback. The buyer can request a refund if the item was damaged, they no longer need that product, they purchased it unintentionally or the delivery time was too late.
Retailers have the right to set a particular refund policy, which is not applicable in a chargeback. They can refund particular items within a specific deadline, but a customer-friendly return policy allows you to develop a strong customer base.
A refund can be requested in the following order:
There is a little difference between the chargeback and refund. Chargeback involves time, money, and resources.