Split Tender Refunds

Quick Reference

• Purpose: Understand CCG's handling of refund requests for split tender payments.
• Key Scenarios: Complete refunds, partial refunds, multiple refunds, and handling of refund failures.
• Use: Refer to the table for status mapping and outcome summaries for different refund scenarios.

CCG Split Payments Refund Process

Sequence diagram

The diagram below illustrates how CCG orchestrates split tender refund requests:

1. Refund Request: Merchant initiates a refund request for completed split tender payments
2. Orchestrated Refund:
   • CCG can process full refunds for both payments
   • CCG can handle partial refunds based on specified amounts
   • For subsequent refunds, CCG processes refunds only against payments that have a remaining balance.
   • CCG implements amount validation to skip payments that have been fully refunded.
3. Outcome Handling:
   • For successful refunds of both payments, status is REFUNDED
   • For failures on one payment, a PARTIAL_REFUND status is returned
   • For multiple partial refunds, CCG tracks remaining balances to ensure proper refund distribution
4. Merchant Decision Point: When one payment refund fails permanently, merchants may need to decide whether to issue unlinked refunds or credits

This approach ensures that split tender refunds are handled with appropriate intelligence around partial and multiple refunds while providing clear status information for exception cases.

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Key Split Tender Refund Scenarios

Scenario	Description	Final Outcome
1	Full Refund: Both payments refunded successfully	REFUNDED
2	Partial Failure: One payment refunds successfully, one fails	PARTIAL_REFUND
3	Partial Amount Refund: Specific amounts refunded from both payments	REFUNDED
4	Multiple Refunds: Subsequent refunds on remaining balance	REFUNDED
5	Refund Exceeds Available: Requested refund amount exceeds available balance	REFUND_FAILED
6	Disputed payments: Refund is not possible on Disputed payments	PARTIAL_REFUND
7	Subsequent Refunds with Balance Tracking: Skip payments with no remaining balance	REFUNDED

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Split Tender Refund - Flow Scenarios

Processing Considerations

Special Considerations

1. Timing Differences:
   • Card refunds typically process within 1-3 business days
   • ACH refunds can take 3-5 business days to complete
   • Split tender refunds with different payment methods may complete at different times
2. Refund Limitations:
   • Individual refunds cannot exceed the original payment amount for each payment method
   • Total refunds across multiple refund requests cannot exceed original payment amounts
   • System maintains a running balance for each payment method to enforce these limits
3. Failure Handling:
   • If one payment method refund fails but the other succeeds, a PARTIAL_REFUND_SUCCESS status is returned
   • Merchants should review partial refunds and may need to issue unlinked refunds for failed portions
4. Status Reporting:
   • Webhooks provide status updates as refunds progress through the system
   • Individual payment method refund statuses are tracked separately
   • Overall refund status reflects the combined outcome of all payment methods
5. Pending Refunds:
   • Refunds from Stripe available balance: Refunds are issued from available balance of connect account, stripe holds refunds if available balance is less than refund amount. stripe will issue refund once available balance becomes sufficient. Stripe will debit from connect account bank account if available balance falls short if autodebit is set as true in settings. Incase of autodebit false, there are chances of refund to be kept on hold which will have significant impact on issuing refunds under split tender transactions.

Refund Validation Enhancements

CCG should implement comprehensive validation rules specifically designed for split tender refunds to ensure proper handling of complex scenarios. See Existing Refund validation for more information

Balance Tracking for Split Tender Refunds

CCG must implement its own amount validation to properly handle multiple refunds across split tender payments.

Balance Tracking flow

Balance Tracking Implementation Details

• Initial Refund: CCG records the original payment amounts and tracks remaining balances after each refund
• Subsequent Refunds: System consults remaining balances before processing additional refunds
• Zero Balance Handling: Payments with zero remaining balance are automatically skipped

Payment Status validation

• Valid Status Requirements: Refunds are only permitted for payments in COMPLETED status
• Capture Validation: Refund should be restricted for uncaptured payments
• Cancellation Check: Payments already in CANCELLED status cannot be refunded
• Expiration Validation: Refunds must be requested within the timeframe allowed by the payment processor (typically 180 days)

Status Validation Matrix

Payment Status	Refund Allowed	Notes
COMPLETED	✅ Yes	Standard refund flow applies
AUTHORIZED	❌ No	Payment must be captured first
CANCELLED	❌ No	Payment already reversed
FAILED	❌ No	No successful payment to refund