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What is the difference between a refund or a chargeback?

The main difference is who takes the action to initiate the reversal process.

A chargeback is a dispute that is initiated by the cardholder or the issuing bank. There are normally fees involved.

When issuing a refund, the merchant initiates the reversal of the transaction and sends the value back to the cardholder.

Updated on February 17, 2021

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