If a customer is dissatisfied for some reason and wants to dispute their transaction, they have two options: refund or chargeback. Both are about returning money to your customers. The main difference between them is who reverses the money:
- in case of a chargeback - a customer contacts the issuing bank of their payment method directly and the bank returns the money (if the chargeback is granted)
- in case of a refund - if the content bought is not as described, or if the service/content wasn’t delivered according to the SLA, a customer might request a refund from a merchant. Then it’s the merchant who returns the money to a customer (if they are entitled to a refund of their purchase).
Chargebacks are important as they protect customers and help to protect against card or account charges that occur without the consent of a card or account owner. You can read more about chargebacks and how Cleeng Merchant can help you minimize and prevent chargebacks in How to Avoid Chargebacks.
As far as refunds are concerned, a merchant deals with the refund request according to their refund policy. To find out more about Cleeng’s policy regarding refunds, see Cleeng Industry Standard Viewer Refund Policy.