Chargeback fees are charged when the issuing bank first files the chargeback, and are not reversed upon the customer withdrawing the chargeback.
The most streamlined way to refund a customer when there is a pending chargeback is to accept the chargeback and refund the customer through the chargeback process. The merchant can inform Reach’s chargeback team that they would like to “refund” or “accept” the dispute by responding directly to the chargeback notification.
Requesting a withdrawal can take several weeks or months to process and can delay the refund even further, and in some rare cases, the option to refund normally is no longer available after the withdrawal is completed.