Refunding Payments
Successful payments can be refunded to the customer’s original payment method. Refunds are usually requested by the customer, otherwise, it could be issued either because it was a duplicate payment, any fraudulent activity was detected or any other unspecified reason.
Issue Refunds
You can issue full or partial refunds based on the amount available for refund. This includes your Zoho Payments account balance, any reserves you’ve added, and the refund buffer you’ve set up. Refunds usually take 5-10 business days to reflect in your customer’s bank.
Insight: To handle refunds and disputes, you can maintain a reserve and top it up with funds and set aside an amount as a refund buffer from your incoming payments.
To issue a refund:
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Go to Zoho Payments and select Payments.
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Select a transaction and click Refund in the top right corner.
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Enter the amount.
Insight: You can choose to make a partial or full refund. In case of a partial refund, you will be able to refund the rest of the amount as well after the initial refund has been processed.
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Select the reason from the dropdown or type it below.
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Click Refund.
Refund receipts can be sent to the customers if you’ve configured your customer notification preferences.
Pro Tip: You can issue a refund from the payment list page as well by clicking the More icon near a payment and selecting Refund from the options.
Note: There’s no fee for refunds, however, the transaction fee collected for the actual payment will not be returned.
View Refund Details
Refund information can be viewed in the transaction’s details page. A mini summary of the refunds will be available when you click View Refund Details near the refund information.
Insight: Customers can track their refunds using ARN by contacting the issuing bank.
Refund Statuses
The statuses indicate the various stages of the refund, providing insights into its progress.
Initiated: The refund has been initiated from Zoho Payments.
Pending: The refund has been initiated, but yet to receive confirmation from the processor.
Failed: The refund couldn’t be processed due to issues with the customer’s card or bank account.
Succeeded: The refund has been successfully processed, and the amount will be credited within 5-10 business days.
Manage Refund Failures
Refunds you issue can sometimes fail if the customer’s card has expired, been canceled, reported as lost, or due to unknown errors at the customer’s bank. For ACH payments, refunds may fail if the customer’s bank account is closed or due to unknown errors at the customer’s bank.
In such cases, the deducted amount will be deposited back to your Zoho Payments account. You can try initiating the refund later and if it still fails, we recommend that you issue it offline using a payment method of your choice. Please reach out to our support if you need further assistance.
