Refund vs Dispute
Refund and Dispute are easy to mix up. Here are both definitions from the HighRisk Media glossary side by side.
Comparison table
| Term | Refund | Dispute |
|---|---|---|
| Full name | — | — |
| In short | Refund — returning money to a customer for a paid order that has been cancelled, not fulfilled, or returned, either at the merchant's own initiative or under payment system rules. | Dispute: a formal claim by a customer against a bank, payment system or operator over a disputed transaction, payout or bet, reviewed under established rules. |
| Verticals | Fintech, Nutra | Fintech, Gambling, Betting, Nutra |
What is Refund?
A refund is a return of payment to the payer that the merchant initiates itself, through the PSP dashboard, the acquirer, or the API. Unlike a chargeback, which is opened by the buyer's bank, a refund is driven by the merchant and is usually resolved faster. The amount can be returned in full or in part, and the provider's fee for the original transaction is often not returned.
What is Dispute?
A dispute is a complaint filed by a payer or player about a transaction. Most often it concerns a charge the customer does not recognize, or a product, service or winning that was not received. The claim is filed not by the platform but by the party that believes the transaction was processed incorrectly.