> For the complete documentation index, see [llms.txt](https://docs.chargebase.co/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.chargebase.co/chargebacks-knowledge-base/refunds-vs-chargebacks.md).

# Refunds vs Chargebacks

A **refund** is a choice you make. You send money back because the customer asked, your policy requires it, or you want to keep them happy.

A **chargeback** is different. It’s a forced reversal started by the customer’s bank (the issuer) after the customer disputes a card charge. The bank pulls the funds back through the card network, and your acquiring bank and processor pass that debit to you. Most of the time, you also get hit with a **chargeback fee** that may not be returned even if you win.

Here’s a simple way to think about it: a refund is a store return, a chargeback is a bank stepping in as referee, and the bank can take the ball back.

| Topic           | Refund                                 | Chargeback                                 |
| --------------- | -------------------------------------- | ------------------------------------------ |
| Who starts it   | Merchant (or customer request)         | Cardholder’s bank (issuer)                 |
| Money movement  | Voluntary credit back to customer      | Forced debit from merchant via network     |
| Fees            | Usually none (beyond processing rules) | Often includes non-refundable dispute fees |
| Outcome control | You control timing and messaging       | Controlled by issuer rules and timelines   |