Difference between chargeback and refund

In this article, we will explore two important concepts in the world of financial transactions: refunds (estornos) and chargebacks. These terms are frequently used in commerce and payment contexts, and understanding their differences and implications is essential for any business dealing with online sales or financial transactions.

What is a refund?

A refund (estorno) is the process by which a financial transaction is reversed and the amount paid by the customer is returned. This process is initiated by the merchant and usually occurs when the customer requests a reimbursement for reasons such as dissatisfaction with the product or service. A refund is a way to resolve the issue directly between the merchant and the customer, without requiring intervention from the bank or card issuer.

What is a chargeback?

A chargeback occurs when a consumer disputes a transaction directly with their credit card issuer. The customer seeks a refund of the amount paid, claiming that the purchase was unauthorized, fraudulent, or unsatisfactory. A chargeback involves a more complex analysis and can result in additional costs for the merchant, as well as impacting the business's reputation.

Main reasons for chargebacks

The primary reasons that lead to chargebacks include:

• Fraud: Transactions made without the cardholder's authorization.
• Customer Dissatisfaction: When the customer is not satisfied with the product or service received.
• Processing Errors: Billing errors or duplicate transactions.
• Disagreement with Refund Policy: When the customer tries to reverse a transaction that does not comply with the merchant's refund policy.
• Unrecognized Transactions: When the customer does not recognize or remember the transaction on their bank statement.

Which of the two affects the business more?

A chargeback has a greater impact on the business compared to a refund. In addition to involving higher fees and returning the transaction amount, a chargeback can harm your business's reputation, especially if disputes become recurring. While neither is ideal, a refund generally carries a lower cost and less impact on the company's reputation.

How to avoid chargebacks?

To minimize the risk of chargebacks, consider the following measures:

• Clear Refund Policy: Have a transparent and easy-to-understand refund policy that is clearly communicated to your customers.
• Effective Customer Communication: Maintain open and proactive communication with your customers to resolve issues quickly before they feel forced to initiate a chargeback.
• Qualified Product in the Market: Offer high-quality products or services that meet or exceed customer expectations.
• Excellent Customer Support: Provide efficient and accessible customer support to address any questions or dissatisfaction before they turn into chargebacks.

Who decides if the chargeback will be granted?

The decision is made by the card issuer or the customer's issuing bank. If they review the case and decide in favor of the customer, Pagar.me will send you a notification informing you that the sale amount must be returned.

Is it possible to appeal?

Yes! You can dispute the chargeback by presenting evidence that the purchase was legitimate. The more robust the documentation, the better. Here are some examples of what you can gather:

• Proof of delivery (tracking screenshot, signature, etc.);
• Issued tax invoice (Nota Fiscal);
• Screenshot of the members area (if it is a digital product);
• Screenshots showing the use of the service or platform.

How will you be notified?

• As soon as a chargeback is initiated, you will receive an automatic email from Pagar.me or Mercado Pago with all the details.
• You can track the status of the chargeback directly within your gateway provider (Pagar.me or Mercado Pago).

Attention to the deadline: You have 10 calendar days to submit the documentation. After this period, the case is automatically closed and you lose the right to appeal.

Need Help?

If you have any questions or need additional support, please contact our support team at: comercial@onprofit.com.br.

Updated on: 06/23/2026