What’s the difference between a refund and a dispute?

A refund is when the merchant agrees to return an amount of funds back to the customer's credit card. A typical reason for this can be the customer has returned goods, or is unhappy with their purchase and the merchant provides a partial refund.

A dispute occurs when the cardholder contacts their card issuing bank directly to contest a charge on their credit card statement. Reasons for this could include:

  • The card details were used without their authority (i.e. fraud)
  • The cardholder contacted the merchant for a refund but didn’t get a response
  • The goods/service provided were not as described

Read our blog post Understanding risk for small businesses accepting payments online for more information on disputes.

Unable to find the answer you need? Contact our team for assistance.

Southern Payment Systems Pty Ltd
t/a Pin Payments
ABN: 46 154 451 582
Level 4, 356 Collins St,
Melbourne VIC 3000

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