{"id":155562,"date":"2023-08-25T07:00:22","date_gmt":"2023-08-25T06:00:22","guid":{"rendered":"https:\/\/startups.co.uk\/?p=155562"},"modified":"2023-08-25T16:00:00","modified_gmt":"2023-08-25T16:00:00","slug":"chargeback-vs-refund","status":"publish","type":"post","link":"https:\/\/startups.co.uk\/banking\/chargeback-vs-refund\/","title":{"rendered":"Chargeback vs refund explained for SMEs"},"content":{"rendered":"

[vc_row][vc_column][vc_column_text]Chargeback<\/strong> and refund<\/strong> are two terms often used interchangeably to describe situations in which dissatisfied customers want to reverse purchases and get their money back – but there are some <\/span>very important distinctions to be made. <\/span><\/p>\n

When you provide a refund, you are choosing to resolve the issues peacefully with your customer; when a chargeback is requested, funds are returned by force. One is a friendly peace treaty, the other is a hostile takeover.<\/span><\/p>\n

Chargebacks also come with additional fees for the merchant and increase a merchant’s chargeback ratio. If a merchant’s chargeback ratio exceeds certain thresholds, it can spell a lot of trouble for businesses – it can trigger a series of escalating consequences that can negatively impact the merchant’s ability to <\/span>process card payments<\/b><\/a> and conduct business smoothly. <\/span><\/p>\n

So it goes without saying that as a small or medium-sized enterprise (SME), it’s important that you understand what chargebacks and refunds truly mean<\/strong> for you and your business — the differences between them, and what steps you can take to reduce the frequency of both chargebacks and refunds. In this article, we’ll dive into the nuances.<\/span>[\/vc_column_text]<\/p>

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\n In this guide, we will cover: <\/h3>\n