Once a chargeback is opened, issuing a manual refund may not be the best course of action.
Why you shouldn't refund manually
When a chargeback is filed, the issuing bank typically applies a temporary credit to the customer's account while the dispute is under review. Issuing a manual refund on top of this could result in the customer being reimbursed twice — once by you and once by the bank — which is very difficult to reverse.
Additionally, some payment processors (such as Shopify) will automatically block the refund option once a chargeback is filed, preventing you from issuing one until the dispute is fully resolved.
What to do instead
Option A: Let the dispute run its course
Wait for the bank's final decision (this can take up to 75 days). In the meantime, let the customer know that a manual refund cannot be issued while a dispute is active, in order to prevent duplicate reimbursement.
While waiting, we recommend gathering any relevant evidence you may have on hand — such as proof of delivery, communication history, or transaction records. For a full list of what's most effective to submit, check out our article: What Evidence Can I Submit for a Dispute?
If the customer wins the chargeback, they keep the funds — no further action is needed.
If the merchant wins and still wants to grant the refund, it can be safely issued at that point.
Option B: Accept the chargeback
If you agree with the claim and want to resolve it quickly, you can accept the chargeback directly within your payment processor (e.g., "Accept chargeback" in Shopify).
⚠️ Please note: Accepting a chargeback will trigger a standard chargeback fee (e.g., $15 in Shopify) and will not be refunded to your account. Always confirm with your team before proceeding with this option.