Refunding & voiding transactions
Settled payments submitted to Payrix via the Portal or API can easily be reversed by issuing a partial or full refund. Refunds can be done directly in the Portal or by sending a POST request to the /txns endpoint of the API.
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The moment a payment is refunded the funds are deducted from the Merchant’s Payrix Available Balance and sent to the processing bank to be returned to the customer (cardholder)the process of returning the funds to the original cardholder begins.
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If a Merchant does not have sufficient offsetting transactions or funds available in Payrix to cover a refund, their primary bank account on file may be debited to cover it. |
Refund processing cycle & timeline
It is important to note that card payments (sale) and eCheck transactions differ slightly in terms of refund processing cycle and timeline.
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eCheck refund cycle & timeline - When an eCheck payment is refunded, an entirely new ACH transaction is created within Payrix, completely separate from the original eCheck transaction. This new ACH transaction sends the relevant refund amount from the Merchant’s bank account Payrix balance to the original customer’s bank account.
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How long does it take for a customer to get their money back for an eCheck refund? Generally, a customer will receive an eCheck refund 4-7 business days after it is submitted by the Merchant, but this varies depending on the customer’s bank. |
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Because eCheck payments may have the settled status prior to the payment being funded, and an eCheck refund is refunds are an entirely separate ACH transaction from the original payment, it is important for a Merchant to check their Available Balance to confirm technically possible for the original eCheck to return even after it was settled and a refund has been issued by the Merchant. In this scenario, the Merchant would be sending money to their customer even though they never received the original eCheck payment that was returned. Therefore, it is critical for a Merchant to ensure the original eCheck payment was fully funded before issuing a refund, and that they issue a refund.If a settled eCheck payment is refunded before the original transaction was funded, and at a later point the original eCheck is returned, the separate refund ACH payment will still continue to process and be sent to the customer. Thus, in this scenario, the Merchant would be sending their customer a refund for a payment they never receivedonly issue eCheck refunds to reputable customers. A Merchant can search their Available Balance to confirm if an eCheck payment has been funded. Even a fully funded eCheck payment doesn’t fully eliminate the risk of the eCheck returning at a later date, but it does help the Merchant mitigate the risks associated with eCheck refunds. |
Voiding or canceling an approved transaction
When a card payment is initially submitted to Payrix the transaction status is approved until it is captured and settled as part of the Merchant’s daily batch. Because an approved transaction means the payment was authorized but it hasn’t been sent to the processing bank yet, and the funds are not available in the Merchant’s Payrix balance yet, these transactions cannot be refunded and must be voided or canceled in order to be reversed.
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