07 Jun 2022 By PAYCEC
Chargebacks are not the same as for refunds, however, they can both result in a credit for a failed order or a fraudulent charge on your account. As a result, you may file a chargeback with your credit card company to dispute the charge.
When you have charged a payer and need to cancel the payment and return the funds to the payer, you must issue a refund. The monies will be restored to the original payment method (credit card, bank account) used by the payer to make the payment.
Within nine various themes, let's take a deeper look at some of the contrasts between chargebacks and refunds.
|COMMUNICATION||You and your customer work together to identify a solution that benefits you both.||Your customer bypasses you and discusses the problem with the bank instead.|
|CLARITY||Your customer tells you exactly what’s wrong so you can solve the underlying issue.||You have to make adjustments based on assumptions that may or may not be accurate.|
|REVENUE LOSS||You are aware of the upcoming revenue loss and can plan for it.||Funds are forcibly removed from your account without any warning.|
|MERCHANDISE||The customer may be willing to return the merchandise so you can try to sell it again.||You can’t ask the customer to return the merchandise since you’ve been omitted from the conversation.|
|REPUTATION||Refund counts are monitored, but they are a relatively low indicator of risk.||Chargebacks are meticulously scrutinized, and penalties are quickly issued if activity increases.|
|FEES||You probably won’t be charged a refund fee.||Chargeback fees are common and expensive.|
|RESOLUTION||From beginning to end, refunds are usually completed within a week or less.||If a case progresses through all five stages of the chargeback process, it can take months to reach a final verdict.|
|TIME||Refunds are usually quick and easy to execute.||Chargeback management is a time-consuming process.|
|EXPERTISE||You need very few skills or insights to issue a refund.||You need extensive|
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