The difference between Chat and Conversation

When used as nouns, chat means informal conversation, whereas conversation means interaction.

When used as verbs, chat means to be engaged in informal conversation, whereas conversation means to engage in conversation (with).

check bellow for the other definitions of Chat and Conversation

Chat as a verb:

To be engaged in informal conversation.

Examples:

"She chatted with her friend in the cafe."

"I like to chat over a coffee with a friend."
Chat as a verb:

To talk more than a few words.

Examples:

"I met my old friend in the street, so we chatted for a while."
Chat as a verb (transitive):

To talk of; to discuss.

Examples:

"They chatted politics for a while."
Chat as a verb:

To exchange text or voice messages in real time through a computer network, as if having a face-to-face conversation.

Examples:

"Do you want to chat online later?"

Chat as a noun (uncountable):

Informal conversation.
Chat as a noun:

A conversation to stop an argument or settle situations.
Chat as a noun (totum pro parte, always with definite article, video gaming):

The entirety of users in a chatroom or a single member thereof.

Examples:

"'The Chat just made a joke about my skills."
Chat as a noun:

An exchange of text or voice messages in real time through a computer network, resembling a face-to-face conversation.
Chat as a noun:

Any of various small Old World passerine birds in the muscicapid tribe or subfamily that feed on insects.
Chat as a noun:

Any of several small Australian honeyeaters in the genus Epthianura.

Chat as a noun (mining, local use):

Mining waste from lead and zinc mines.

Chat as a noun (British, Australia, NZ, WWI, _, military, _, slang):

A louse .

Conversation as a noun (obsolete):

Interaction; commerce or intercourse with other people; dealing with others.
Conversation as a noun (archaic):

Behaviour, the way one conducts oneself; a person's way of life.
Conversation as a noun (obsolete):

Sexual intercourse.
Conversation as a noun (obsolete):

Engagement with a specific subject, idea, field of study etc.; understanding, familiarity.
Conversation as a noun:

Expression and exchange of individual ideas through talking with other people; also, a set instance or occasion of such talking.

Examples:

"I had an interesting conversation with Nicolas yesterday about how much he's getting paid."
Conversation as a noun (fencing):

The back-and-forth play of the blades in a bout.
Conversation as a noun (computing):

The protocol-based interaction between systems processing a transaction.

Conversation as a verb (nonstandard, ambitransitive):

To engage in conversation (with).