Double Refund Chargeback

A double refund chargeback arises when a customer simultaneously initiates a chargeback with their bank while also requesting a refund directly from the merchant. If both the refund and chargeback are processed within a short timeframe, it can result in a double refund scenario where the merchant reimburses the cardholder twice the transaction amount.

In such cases, the merchant’s acquirer may undertake representation efforts, either automatically or manually, to resolve the chargeback dispute.