Skip to main content
Version: v2

Refunds

What is a Refund?​

A refund is the return of funds to a customer after they have made a payment for a product or service. Refunds are typically issued when a customer is dissatisfied with a product or service, when an error occurs in the transaction, or when a business policy allows for returns.

Types of Refunds​

Linked Refund​

Linked refunds are processed against an existing completed payment transaction. A successfully completed transaction is required before a linked refund can be issued.

Unlinked Refund​

An unlinked refund (also known as a credit or cashback) is issued directly to the payment method ID without requiring a prior transaction. This allows for issuing credits to customers without an original transaction reference.

Business Rules​

Pre-Conditions for All Refunds​

  • A valid refund reason must be provided. Acceptable reasons are:
    • REQUESTED_BY_CUSTOMER
    • DUPLICATE
    • FRAUDULENT
  • A unique MerchantTransactionId is required to issue any refund

Linked Refund Requirements​

  • The original payment transaction must have a status of COMPLETED
  • Refund amount must be less than or equal to the original payment amount
  • If no amount is specified, the full original payment amount will be refunded
  • The following refund types are supported:
    • Partial Refunds: Only a portion of the transaction amount is refunded
    • Full Refunds: The entire transaction amount is refunded
    • Multiple Refunds: Multiple partial refunds can be processed for a single transaction, but the cumulative refund amount cannot exceed the total transaction amount

Unlinked Refund Requirements​

  • Valid customer and payment method is required
  • Specific refund amount must be provided
  • Bank account payment method are not supported for unlinked refunds
  • Partial & Full Refunds are not applicable for Unlinked Refunds

Refund Statuses​

Refunds may transition through the following statuses:

  • PENDING: The refund request has been received and is being processed
  • COMPLETED: The refund has been successfully processed and funds are being returned to the customer
  • FAILED: The refund could not be processed due to an error or validation failure

Business Use Case Flows​

Linked Refund Flow Chart​

Unlinked Refund Flow Chart​

Refund Notifications​

When a refund is processed, notifications may be sent to:

  • The merchant through webhook events
  • The customer via email (if configured)