Refunds, Chargebacks and Disputes
Refunds, chargebacks and disputes are three different ways money can flow back to a customer, and they have very different costs and consequences for your business.
Knowing the difference helps you respond appropriately and protect your standing with the card networks.
The Key Difference
A refund is something you choose to issue. A chargeback is forced on you by the customer's bank when they dispute a charge, and it usually comes with a fee.
Why Chargebacks Hurt More
- You lose the sale and pay a chargeback fee.
- Too many chargebacks can flag your account as high risk.
- Resolving them takes staff time and evidence gathering.
| Type | Initiated by | Cost to you |
|---|---|---|
| Refund | You | The refunded amount, fees often lost |
| Chargeback | Customer's bank | Amount plus a dispute fee |
| Dispute | Customer via bank | Time plus possible loss |
Frequently Asked Questions
How do I reduce chargebacks?
Clear billing descriptors, easy refunds and good customer service stop most disputes before they reach the bank.
If you need a hand with any of this, your Progressive Robot delivery team is ready to help. Raise a ticket from the Support area of your client portal or speak to your account manager and we will guide you through the next steps.