Canceling / refunding a transaction
This page presents the differences between transaction cancellation and refund.
Examples of use cases
- Cancellation feature : a user has ordered two products from you. They are definitively out of stock. You cancel the transaction so that the buyer’s account is not debited.
- Refund feature: the client has returned the product as it did not match their requirements, the product has been damaged during shipping, etc. The Merchant must refund the buyer.
The difference between cancellation and refund
Transaction cancellation must be made before this transaction is captured in the bank. The capture occurs at 12.05 a.m. for transactions made on the previous day (12.00 a.m. to 11.59 p.m.).
If the transaction has been captured and the payment method holder has been debited, a refund must be made. The refund amount is lower or the same as the initial amount. The refund operation allows to re-credit the buyer's bank account. A corresponding amount is debited to the merchant payment account.
Cancellation cannot be partial. Since cancellation occurs before capture in the bank, the buyer should not see any operations on their account.
Cancellation and prepaid cards:
In case of a payment made with a prepaid card and authorized by the issuer, the Buyer's bank account is debited immediately, without waiting for the payment to be captured in the bank (as in case of most bank cards). If the Merchant cancels the transaction before capture in the bank, the payment method holder''s account is not updated in real time (except in case of automated fuel dispensers). The Buyer''s balance will be restored at the end of the authorization validity period, which can be up to 30 days depending on the type of the card.
Refunds are always made for operations captured in the bank (but not necessarily already credited to the merchant account, it depends on payment delays).
- "Cancellation" feature only.
- “Refund” feature only, cancellation is no longer possible.
To cancel or refund a transaction via the REST payment Web Service, go to: Transaction/CancelOrRefund .