Core ConceptsPayment Processing

Full and Partial Refunds

Issuing refunds through PayOS

Overview

Refunding transactions is a crucial aspect of managing a successful merchant operation. PayOS supports both full and partial refunds, allowing merchants to process refunds directly through the same payment rails used for the original transactions.

Refund Requirements

  • Available Balances: To process refunds, merchants must maintain sufficient balances with their payment processors in the relevant markets.
  • Transaction Eligibility: Refunds can only be issued against transactions that have been successfully captured and settled.

Issuing Full Refunds

A full refund returns the entire transaction amount to the customer. This is typically used when a customer returns a product or cancels a service entirely.

How to Issue a Full Refund

  • Identify Transaction: Locate the transaction in your PayOS dashboard or via API that needs to be refunded.
  • Request Refund: Initiate a refund request through the PayOS API or dashboard.
1{
2  "transactionId": "txn1048576",
3  "amount": "full"  // Specifies that the refund is for the full amount
4}

Issuing Partial Refunds

Partial refunds allow merchants to return only a portion of the transaction amount, useful in cases of partial returns or discounts being applied post-purchase.

How to Issue a Partial Refund

  • Specify Amount: Determine the exact amount to be refunded, which can be less than the original transaction amount.
  • Request Refund: Send a partial refund request specifying the amount.
1{
2  "transactionId": "txn1048576",
3  "amount": 5000  // Partial amount in the smallest currency unit
4}

Refund Notifications

When refunds are processed, PayOS can trigger notifications for:

  • Successful Refunds: Confirmations sent to both merchants and customers.
  • Balance Alerts: Notifications for top-ups when balances with processors are insufficient to cover the refund.

Best Practices

  • Maintain Adequate Balances: Regularly monitor and top up your balances with payment processors to ensure smooth refund transactions.
  • Communicate with Customers: Keep customers informed about the status of their refunds to maintain trust and satisfaction.
  • Monitor Refund Trends: Analyze refund patterns to identify potential issues with products or services early on.

Conclusion

Efficiently managing refunds is essential for maintaining customer satisfaction and operational compliance. PayOS provides robust tools to handle full and partial refunds, ensuring merchants can manage their financial transactions effectively.