Refunds on Optimizer

There could be situations when customers request a refund of the payments made for the products or services purchased or availed on your website or app.

Customer Looking for Refund

If you are a customer looking for a refund, know about customer refunds.

How Refunds Work

When you request a refund through Optimizer, the details are forwarded to downstream payment gateways, each with its own refund procedures. Once processed, the refund amount is sent to the customer’s bank account or card balance. For example, if a credit card was used to make the payment, the refund amount is pushed to the same credit card.

Handy Tips

Once the payment is processed, Optimizer retrieves the status from the downstream gateway and displays it to the customer.

Issue Refunds

You can issue refunds to your customers using the Dashboard or APIs. Refunds are possible for captured payments only.

Refunds can be made either in full or in part.

• Full Refund

You can refund the entire amount that you received in the payment.

• Partial Refund

You can refund part of the amount received in the payment. You can issue multiple, partial refunds as long as their sum does not exceed the captured amount.

A payment moves to the refunded state only when the entire amount is refunded to the customer. In case of partial refunds, the payment continues to remain in the captured state till the entire payment is refunded.

Refund States

Following are the various states of a refund:

States | Description

created | This state indicates that the refund is initiated from Razorpay. This state will be displayed only on the Refunds API.

processed | This is the final state of the refund.

failed | A refund can attain the failed state if normal refunds are not possible for a payment that is more than 6 months old.

Issue Refunds Using Dashboard

Follow the steps given below to issue refunds:

1. Log in to the Dashboard.

2. Navigate to Transactions → Payments.

3. Select the payment for which refund is requested. The payment should be in the captured state.

4. On the Refund Payment page, in the amount field, enter an amount lesser than the captured amount for issuing a partial refund. By default, the entire amount will be refunded.

5. Click the Issue Full Refund or Issue Partial Refund button, depending on the amount to be refunded.

6. Once the refund is processed successfully the status of the refund moves to Refunded, if not you can view the details of the gateway failure reason along with error code.

View Refunds Details

To view a refund:

1. Log in to the Dashboard.
2. Navigate to Transactions → Refunds.
3. Click a Refund Id to view details of the refund.