As if the loss of revenue from chargebacks wasn’t bad enough, every chargeback has the potential to bring along a host of subsidiary problems—bank fees, increases to your chargeback ratio, time and labor spent in representment, and more—but the most galling one to encounter can be the dreaded double refund chargeback. This is when both a chargeback and a merchant-initiated refund get processed for the same transaction, leaving you with twice the amount of lost revenue on top of the fees, product cost, and other losses. What can merchants do to prevent double refund chargebacks from occurring?

To prevent double refund chargebacks, it is necessary to understand how and why they occur. Obviously enough, they refer to situations in which one hand doesn’t know what the other is doing: either the merchant processes a refund unaware that a bank dispute is in progress, or the bank escalates a dispute to a chargeback before checking with the merchant to see if a refund has already been issued. It doesn’t matter whether the refund was initiated first, or the dispute—double refund chargebacks can occur either way.

Full Text:
https://www.chargebackgurus.com/blog/chargebacks-preventing-double-refunds

©Chargeback Gurus 2020
Production: Tyler DeLarm
Narration: Sarah Rife