Use Case: Refund a Collected Fee

Owned by Miles Graves
Last updated: Dec 23, 2024 by Ada Li
4 min read

You can refund a fee mistakenly charged to a Merchant or when client satisfaction hinges on the reimbursement of a fee or set of fees. When this happens, you must understand how to issue a fee refund quickly and correctly to provide the best client experience to your Merchants. This tutorial walks you through the steps to refund a fee to a Merchant that was previously collected.

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Partial view of the Transaction Details page where individual fee line items can be refunded.

 

Objective

Refund a fee to a Merchant that has already been processed and collected.

Audience

  • Facilitators

  • Referrers

Environment

  • Portal (Sandbox)

  • Portal (Production)

Prerequisites

Prerequisites:

  • You must have a fully boarded Payrix account to perform any of the actions described in the use case guides.

  • Make sure you’re familiar with the following terms and information:

    • Fee Types: The different categories of fees that can be created and charged

    • Fee Structure: Overview of the basic layout for a fee configuration

      • Fee Schedules: Available time-based or event-based triggers used to initiate a fee charge

      • Fee Rules: Options to further refine the criteria of the fee schedule

      • Fee Modifiers: Options to redirect the fee collection flow and who will pay the fee

      • Fee Collection Process: Overview of how fee payments are collected and where they can be found

Warnings

Warning: This process is only applicable to Merchants on Net Billing. Merchants under Statement Billing cannot use this process.

Tips

Additional Resources

Refunding a Fee

Issue a Fee Refund from the Transaction Details page

  1. Select Payment History (under the Payments category).

  2. Locate the transaction you’d like to refund fees for and select the listing to access the Transaction Details page for the transaction.

  3. Click the Fees tab to reveal all related transaction fees for the associated transaction.

  4. Click Refund located next to the specific fee entry you’d like to refund to the Merchant.

Issue a Fee Refund from the Balance Details page

  1. Select Merchants (under the Management category).

  2. Find the Merchant you want to refund and select the listing to access their profile page.

  3. Click the Merchant’s Available Balance tile to access their Balance Details page.

  4. Locate the processed fee charge by referencing the date and event listed for each entry in the Entries section.

  5. From the Entries section, click the opposing entry’s listing to reveal its Entry Details page after verifying that you found the correct fee charge.

Issue a Fee Refund from the Merchant Profile page

  1. Select Merchants (under the Management category).

  2. Find the Merchant you want to refund and select the listing to access their Merchant Profile page.

  3. Scroll down to the Profile menu and click the Fees tab to access the Merchant’s Fees page.

  4. Locate the fee you want to refund under Active Fees and select it to access the Fees Details page.

  1. Scroll down to the Entries section and click the opposing entry’s listing to reveal its Entry Details page after verifying that you found the correct fee charge.

  1. Click Refund at the bottom of the page to open the Refund lightbox.

  2. Use the pre-filled Refund Amount field value to issue a full refund or enter a lower amount to issue a partial refund. Then, click Refund to complete the fee refund.

Result: The refunded fee charge is immediately debited to the Merchant’s available balance from your available balance. The Entry Details page for the fee charge will display as Refunded with a status badge next to the Entity Details page title to confirm the refund was issued.

Conclusion

After completing your Merchant’s fee refund, you can verify the completion of the refund processing by accessing your Balance Details page and reviewing your Entries section. Verify processing completion on the Balance Details page using the following validation criteria:

  • The From Entity Name and From Entity ID field values display as the Merchant name and Merchant Entity ID that was originally assessed the fee.

  • The Description field auto-displays Refund for entry t1_etr_{yourRefundEntryId}.

  • The Event field auto-displays Entry Refund.

  • The Amount field is a negative amount matching the amount you refunded.

  • The Event ID matches the original fee charge Entry ID (for example, t1_etr_{originalFeeChargeEntryId}).

References

Click the links or items below to access any of the following pages: