Refunds are reversal transactions wherein complete or partial money is moved back to customer’s source account (account from which actual payment was made). Refund can only be created for a successful or settled transaction:
- Customer initiated refunds (returns or cancellation) - e.g. if the Customer has changed his mind about consumption of product pre/post order delivery.
- Initiating Party initiated refunds - e.g. if a product/service is out of stock or there is a mismatch in transaction status between payment and Initiating Party wherein transaction is failed state at merchant's end but is successful at payments end.
For the refund processing the data from the original Account-to-Account request / response are used, so that the resulting refund transaction can be reconciled with the original transaction.
As part of the transaction processing we offer a secure Refund Processing Online (via API's) or Offline (via API's or the Backoffice). The activity diagram below describes the difference between those two processes. Note: Online and Offline refunds both offer API's, those API's are different.
Please note: The Refund processing allows either Online or Offline Refunds.
Online Refunds
Endpoint: POST /refunds
Use the API's to initiate payments of refunds. Multiple refunds can be payed in one go, if the merchant bank supports bulk-payments.
Offline Refunds
The Backoffice GUI can be used to register and export refunds to a pain.001 file. This pain.001 file has to be provided to the bank of the merchant. This delivery is not done by the Open Banking Service, therefore this refund method is named 'offline'.