Handling Chargebacks for Refunds

For the prevention of chargebacks, Razorpay only does source refunds. It means that money is refunded to the payment method that the customer used to make the payment. For example, if a credit card was used to make the payment, the refund is pushed to the same credit card. Similarly, in UPI payments, the refund is pushed to the VPA used while making the payment.

If a chargeback is received for an instantly refunded payment, the processed refund will have a UTR (Unique Transfer Reference) in the callback. This UTR appears against the ARN (Application Reference Number) parameter in the Refund entity. The UTR serves as proof of refund completed between you and Razorpay.

Additionally, Razorpay passes the RRN (Razorpay Reference Number) of the payment in the Fund Transfer Request sent for the refund. This ties the instant refund back to the parent payment, thereby serving as proof of the refund. This data can also be used as a defence against a future chargeback or arbitration case.