> ## Documentation Index
> Fetch the complete documentation index at: https://razorpay-60c89f9a-mintlify-audit-missing-sections-1778528421.mintlify.site/llms.txt
> Use this file to discover all available pages before exploring further.

# About Instant Refunds

> You can refund the amount to your customer almost instantly using Instant Refunds. This provides a better user experience for them. This also helps in improving their reliability and trust in your business.

<Info>
  **Handy Tips**

  Instant Refunds feature is enabled by default for your account. You should set the refund speed to `optimum` when creating a refund request to ensure refunds are processed instantly. We will consider the default speed if you do not specify the same during the refund request. Know more about [setting the default speed](/payments/refunds/refund-speed) from the Dashboard.

  Refunds will be processed at an optimal speed based on Razorpay's internal fund transfer logic:

  * If the refund can be processed instantly, Razorpay will do so irrespective of the payment method used to make the payment.
  * If an Instant Refund is not possible, Razorpay will initiate a refund that is processed at the normal speed.
</Info>

<Info>
  **Customer Looking for Refund**

  If you are a customer looking for a refund, know more about [customer refunds](/payments/customers/customer-refunds).
</Info>

## How Instant Refunds Work

When an Instant Refunds request is sent to Razorpay, our system processes the refunds instantly. The customer receives the refund within minutes (or an hour, sometimes) on their original payment source.

Instant Refunds is a value-added service provided by Razorpay; if and when you opt, Razorpay will charge due consideration for providing Instant Refunds services. You must agree to read and understand the terms of Instant Refunds before signing up.

Following is a typical flow for instant refunds:

### Payment Methods

We support the following payment methods for Instant refunds. The list of banks that support Instant refunds differs according to payment methods.

* [List of supported banks for Netbanking](/payments/refunds/supported-payment-methods#netbanking)
* [List of supported banks for UPI](/payments/refunds/supported-payment-methods#upi)

Refunds are sent back to the original payment method used in making the payment. For example, if netbanking was used to make the payment, the refund amount was pushed to the same netbanking details.

### Processing Time

For all transactions, the time taken depends on the amount to be refunded:

## **Refund Amount** | **Time Taken for Refund**

## Up to 500000 | Credited immediately to the customer's account.

## More than 500000 and up to 10000000 | Processed via NEFT and credited within 3–4 hours during business hours. For refunds raised beyond business hours, it can take up to 1 business day.

More than 10000000 | The refund is processed at normal speed and can take 5–7 business days.

### Refund Fees

Razorpay charges a small transaction fee to process Instant Refunds. The fees is deducted directly from your account balance and reflects under the Dashboard Refunds tab. In cases where the Instant refund fails and the refund takes 5-7 working days, the levied fee is credited back to your account balance. The fee break-up is shown in the end-of-the-month invoice generated by Razorpay. You can view and download the details from the **Instant Refunds Reports** from the Dashboard. Visit the [pricing page](https://razorpay.com/pricing/) for more details.

<Warning>
  **Watch Out!**

  In the case of instant refunds, the Platform fee charged or deducted for the transaction will not be refunded.
</Warning>

## Dashboard and API Actions

You can perform the following actions:

* [Issue Instant refunds](/payments/refunds/issue)
* [Handle refund errors](/payments/refunds/errors)

### Related Information

* [Payment Methods for Instant Refunds](/payments/refunds/supported-payment-methods)
* [Batch Refunds](/payments/refunds/batch)
* [Refunds API](/payments/refunds/apis)
* [Subscribe to Webhooks](/payments/refunds/subscribe-to-webhooks)
* [Refunds FAQs](/payments/refunds/faqs)