1. Delay in the issuing bank's system: One primary reason for this issue is the latency in the bank's system responsible for processing transactions. This delay may lead to a chargeback being filed, even after a refund has been initiated by the merchant.

  2. Customer-initiated chargeback: In some instances, customers might contact their bank to file a chargeback after having a conversation with the merchant's customer service. Consequently, the refund may be issued following the initiation of the chargeback, causing an overlap between the two processes.

  3. Discrepancies in refund amounts: Occasionally, a client may request a full refund, but the merchant inadvertently issues a partial refund. In such cases, the client might reach out to the financial authority to demand the complete refund amount, resulting in a chargeback.

  4. Technical issues with the issuing bank: Refunds can fail due to technical difficulties on the issuing bank's end. These complications might prevent the successful processing of the refund, leading the customer to file a chargeback.

To address these situations, merchants can submit documentation for representment to demonstrate that the refund was, in fact, issued. However, it is crucial to remember that even if the merchant wins the case, a chargeback fee will still be applied, and the chargeback will be counted towards their chargeback ratio. Maintaining a low chargeback ratio is essential, as high ratios can negatively impact a merchant's reputation and relationship