This article explains the difference between transaction reversals, refunds, and chargebacks. It outlines who initiates each process, why it occurs, and how each method returns funds to your Gnosis Pay Card.
Noticed money returning to your account and unsure why?
There are three main ways funds can be returned after a transaction:
Reversal
Refund
Chargeback
While they may look similar, each one is triggered for a different reason by a different party. Let’s break it down.
🔄 What Is a Transaction Reversal?
A reversal is when a merchant cancels a recent transaction—typically the same day.
It’s not a refund; the original payment is voided, like it never happened
Often used to correct errors before the transaction fully processes
📌 Funds held during a reversal are typically returned within 1 business day
📊 Quick Comparison Table
| Term | Initiated By | Common Reason |
|---|---|---|
| Reversal | The merchant | Mistaken charge (e.g. duplicate or incorrect amount) |
| Refund | The merchant | Return of goods or cancelled service |
| Chargeback | You (via support) | Dispute for fraud or unresolved issue with the merchant |
✅ Common Reasons for a Reversal
Duplicate charge — accidentally billed more than once
Wrong amount — cashier entered an incorrect figure
Customer cancelled immediately — transaction was voided on the spot
Terminal error — technical issue caused an invalid charge
💬 What Should I Do If a Reversal Happens?
Usually, nothing is required from you. Here’s what to expect:
The merchant will confirm that a reversal is being processed
The reserved funds will return to your wallet
It may take up to 1 business day for the transaction history to update