Glossary

Refund

Return of the amount to the buyer made by the seller themselves, without going through a dispute with the bank.

A refund is you returning the money by your own decision, within the refund policy. It's different from a chargeback, in which the buyer goes to the bank and the amount is taken back by force.

The difference matters more than it seems. The refund returns the amount and closes the matter. The chargeback returns the amount, charges a fee, eats into your dispute quota, and, if it piles up, takes your account offline.

That's why refunding quickly when the buyer asks is a financial decision, not a courtesy: it costs less than the same return arriving through the bank's route.

A refund settled quickly costs less than a dispute opened at the bank. When the buyer can resolve it inside the platform, the seller takes no chargeback and nobody loses an account over a ratio.
Wellington CostaGlobal Payments Specialist

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Written by Wellington Costa Global Payments Specialist

Writes about payment infrastructure, checkout conversion and chargeback reduction. Works directly with digital product sellers, affiliates and creators selling to more than 40 countries through Mundpay.