What is the difference between chargeback and refund?

There is a little difference between the chargeback and refund. Chargeback involves time, money, and resources.

The main difference exists between the ways of how a cardholder receives the payment.

The other difference is the fees because both in situations, merchants lose the revenue. A refund doesn’t cost extra charges or fees, but a chargeback includes additional charges. Banks request these extra charges for covering the cost of handling the process between merchants and sellers.

The refunds can be initiated quickly compared to chargebacks. A few clicks can initiate the refund while the chargeback may involve several months.