Refund vs. Chargeback

How is a refund different than a chargeback? They both involve returning money from a merchant to a customer, but they use different paths for the refund.


A refund is a transaction issued by the merchant to the customer. Refunds appear on customer statements as a ‘negative’ charge.


A chargeback is a merchant charge disputed by the customer at the bank. The action of a chargeback is the bank crediting the customer account and charging the merchant. It is essentially 2 transactions - with the bank as the intermediary.

Refunds and Chargebacks at Fidel

Fidel receives real-time transactions for enroled cards with merchants. A refund is a charge between the merchant and the card, and is thus recorded with in the dashboard in real time.

Since a chargeback is not a transaction occurring between a merchant location and a customer, rather a series of transactions centered around the bank, it will not appear as a transaction in Fidel.