You requested a refund.
You expected a standard reversal.
But then you see a different update.
Chargeback initiated.
Dispute opened.
The refund process stopped.
It feels escalated.
It feels more serious than a refund.
A chargeback shifts the case from merchant handling to bank investigation.
Refund vs Chargeback — Key Difference
- Refund: merchant processes the return
- Chargeback: issuing bank investigates the transaction
- Refunds are cooperative
- Chargebacks are formal disputes
The responsibility moves to the card network.
Why Refunds Convert Into Chargebacks
- Customer filed a dispute with their bank
- Refund processing exceeded expected time
- Merchant failed to respond
- Fraud review triggered an investigation
Once filed, merchants lose direct control of the refund.
How Chargeback Investigations Work
- Bank collects transaction evidence
- Merchant submits defense documentation
- Card network reviews both sides
- Final ruling determines fund direction
This process can take 30–90 days.
What You Should Do Next
- Monitor dispute case updates
- Provide requested documentation
- Avoid duplicate refund requests
Chargebacks pause refunds until the investigation concludes.
Once escalated, the timeline follows banking dispute procedures.