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Refunds

In the online business landscape, customers may occasionally request refunds for purchases made on the merchant website or app. These situations, often stemming from dissatisfaction with products or services, are a normal part of digital commerce. Efficiently managing these refund requests is vital for maintaining customer trust and ensuring a smooth transaction experience.

Refund Types​

Normal Refunds​

This traditional refund method involves returning the payment to the customer for a single transaction. It is typically processed individually and may take a standard duration to reflect in the customer's account.

Batch Refunds​

Suited for processing multiple refund requests at once, batch refunds streamline the process by allowing merchants to handle several transactions simultaneously. This method is efficient for handling bulk refund scenarios.

Instant Refunds​

Designed for immediate resolution, instant refunds expedite the refund process, providing customers with an almost immediate return of funds. This type is particularly beneficial for enhancing customer satisfaction due to its swift processing time. (Picked up in Q4)

Refund Types​

Full Refunds​

This type involves returning the entire amount of the original transaction to the customer. Full refunds are typically issued when the customer returns a product in its original condition or when a service is canceled entirely.

Partial Refunds​

In this scenario, only a portion of the original transaction amount is refunded to the customer. Partial refunds are applicable in situations where only part of a service is unused or if a product is returned partially or not in its original state.

Refund States​

  • Initiated
  • Processing
  • Success
  • Failure

Understanding Normal Refunds​

When a Normal refund is requested, the procedure engages several financial intermediaries. Your request is first transmitted to the respective acquiring bank on which the sale transaction was done. Subsequently, these institutions, starting with the acquiring bank, pass the request along the payment chain to the network. This network is in charge of processing the request and then transmitting it to the customer's issuing bank. Each participant in this chain follows its distinct protocol for refunds. Following the completion of these steps, the refunded amount is finally deposited into the customer's bank account or credited to their card.

How to Initiate Normal Refunds?​

Refunds can be initiated from:

  • Dashboard
  • API

Understanding Batch Refunds​

Batch refunds provide a convenient way to handle multiple refunds simultaneously using an XLSX or CSV file. This method is especially useful for managing a large volume of refunds efficiently. The format of the file is given in the Batch Refunds section on the dashboard. The data for refunds need to be populated in the given format and uploaded on the dashboard to initiate batch refunds.

Understanding Instant Refunds​

When an instant refund request is initiated, the system processes the refund immediately, ensuring that customers receive the refund within minutes, occasionally extending up to an hour. This promptness allows the refund to be credited directly back to the customer's original payment method. Instant Refunds represent a value-added service in the payment processing ecosystem. This service, when opted for, incurs an additional fee, reflecting the expedited nature of the transaction.