Frequently Asked Questions

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Chargeback vs. Refund: What's the difference?

While chargebacks and refunds are both methods of returning payment from a merchant to a cardholder, they are not the same. A refund is a voluntary return of payment, usually negotiated directly between the merchant and consumer, with no consequences for the merchant other than the lost revenue and potentially lost product. Chargebacks are the result of a much more complex process that involves multiple banks, processing costs, and fees. The consequences for merchants can be much more significant, as well.


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