Need help with a refund or chargeback? Learn the difference between these two processes and how Cleeng can help resolve disputes effectively.
The difference between refunds and chargebacks lies primarily in who initiates the return of funds and under what circumstances.
Refunds
Refunds are initiated at the bank or payment provider level rather than directly by Cleeng. In other words, if a customer finds that the product or service they purchased doesn’t meet expectations—such as being misrepresented or not delivered as promised—they can contact their bank or payment provider to request a refund. The bank or provider then evaluates whether the customer is entitled to a refund based on provided evidence, and if so, the bank processes the return of funds. Cleeng does not handle refunds; they are resolved entirely through the customer’s bank or payment provider.
Chargebacks
Chargebacks, on the other hand, are initiated by the customer through their bank, but Cleeng is involved in handling chargeback disputes. A chargeback happens when a customer disputes a transaction through their bank, typically because they believe the transaction was unauthorized or unresolved. The bank automatically withdraws the funds from Cleeng’s account and temporarily refunds the customer. Cleeng evaluates the chargeback claim and, if believed to be invalid, disputes it by providing evidence. The issuer and, in some cases, the payment method then decide on the validity of the chargeback and whether to return the money to the customer. This process ensures customer protection against fraudulent charges and unfulfilled services or products.
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In summary, chargebacks lead to a dispute process through the bank, and Cleeng can dispute the chargeback, whereas refunds are handled entirely by the bank or payment provider without Cleeng’s involvement.