A refund allows you to reverse a transaction and return money to the cardholder or bank account holder. The refund amount must be equal to or less than the original transaction amount and can never exceed it. Refunds must always be associated with a previous sale or authorization. As the merchant, you will initiate the refund for a transaction that you originally processed.
Why You Might Need or Want to Refund a Transaction
There are several reasons why you might need to issue a refund. Some common scenarios include:
- Customer Request: A customer may request a refund due to dissatisfaction with a product or service.
- Product Return: If a customer returns a purchased item (e.g., defective product, wrong item, or simply changed their mind), you will need to refund their payment.
- Billing Error: If the customer was charged incorrectly (e.g., charged the wrong amount or double charged), a refund would correct the error.
Refunds vs. Voids
Please note that a refund can only be issued for a transaction that has settled. Settling means the transaction has been successfully processed and the funds have been transferred. If the transaction has not yet settled (for example, it is still pending), you will need to void the transaction instead of refunding it.
- Refund: A refund is used to return money to the cardholder after the transaction has settled (i.e., the funds have been transferred).
- Void: If a transaction has not yet settled, you can cancel it by issuing a void. A void essentially prevents the transaction from being completed, and no funds are transferred. Voids are typically used for cancellations before the transaction is finalized.
Steps to Refund a Transaction
Follow the steps below to process a refund directly from the Merchant Portal:
- Log in to the Merchant Portal
- Access your account by logging in to the Merchant Portal.
- Once logged in, navigate to the Credit Cards section on the left-hand panel.
- Select Refund Transaction Type
- In the Credit Cards section, click on Refund.
- Enter the Transaction ID and Amount
- Enter the Transaction ID of the sale you wish to refund.
- The Amount field will automatically populate with the original transaction amount.
- Choose Full or Partial Refund
- Full Refund: To issue a full refund, the amount must match the original transaction amount.
- Partial Refund: To issue a partial refund, enter an amount less than the original transaction amount.
- Click on Refund to process the transaction
- The transaction will be reversed, and the refund will be completed.
Refunding a Transaction from the Transaction Details Page
You can also initiate a refund from the Transaction Details page within the Reporting section.
- Navigate to Reporting
- Go to Reporting → Transaction Search.
- Locate the Transaction
- Search for the transaction you wish to refund and click on the Transaction ID.
- From the transaction details, you can click on Refund to complete the process.
Receipt of Successful Refund
Once the refund is successfully processed, you will see a Transaction Successfully Refunded page. From here, you can either:
- Print the receipt.
- Email the receipt to the cardholder.
Possible Errors and Solutions
Error: Transaction Not Found. REFID:1234567890
If you receive the error message "Transaction Not Found", this may indicate a permissions issue. Specifically, the user attempting the refund might not have the Access Other Users' Transactions permission. Without this permission, users can only refund transactions processed with their own user account.
Need Help?
If you experience issues or are unsure whether a transaction can be refunded, please contact your Merchant Service Provider directly for assistance. Be ready to provide the Transaction ID and relevant customer details to expedite the process.