Why Was My Customer's PayID Payment Refunded?

If your customer has made a payment using PayID through Pay Advantage and the funds have been returned to their bank account, this means the payment was unable to be successfully processed.

There are several reasons why a PayID payment may be rejected and refunded. The most common reason is that the amount transferred by the customer doesn't match the amount requested.

This article explains why PayID payments may be refunded, what happens to the funds and how to avoid future payment failures.

1. Incorrect Payment Amount (Most Common Reason)

When a customer makes a PayID payment through Pay Advantage, the amount transferred must match the requested payment amount exactly, down to the cent.

If the customer transfers an amount that is higher or lower than the requested total, the payment will be automatically rejected and returned to their bank account.

In Pay Advantage, the payment will appear with the failure reason Incorrect Amount.

Why Does This Happen?

One of the most common causes is that PayID on-charging is enabled on your account.

When on-charging is enabled, the PayID processing fee is added to the amount your customer needs to transfer.

For example:

If the customer transfers $290.00 instead of $290.48, the payment will be rejected because the amount received doesn't match the requested total.

This can also happen if a customer manually enters the wrong amount, rounds the payment up or down, or transfers only part of the requested amount.

What Are My Options?

Option 1: Keep PayID on-charging enabled

If you'd like your customers to continue covering the PayID processing fee, you can leave on-charging enabled.

Customers must transfer the exact total displayed on the PayID payment screen, including any additional fees.

Option 2: Disable PayID on-charging

If you'd prefer customers to pay only the original invoice amount, you can disable PayID on-charging.

Navigate to Settings > Payment Settings > On-Charge Fees and untick the PayID on-charging option.

For new payment requests, customers will then only need to transfer the requested invoice amount, and your business will absorb the PayID processing fee.

2. Using Incorrect or Previous PayID Payment Details

PayID payment requests are associated with specific payment details.

If a customer uses payment information saved from a previous transaction rather than the details provided for their current payment request, the payment may be rejected or unable to be matched correctly.

What should I do?

Ask your customer to open their current payment link and use the PayID details and exact amount displayed.

We recommend avoiding previously saved PayID payment details when making a new payment.

3. Payment Rejected by the Customer's Bank

In some circumstances, a PayID transfer may be declined or blocked by the customer's bank before the payment is successfully processed.

This can happen due to bank security checks, transaction limits or restrictions placed on the customer's account.

What should I do?

If the customer's bank has declined the transfer, they'll need to contact their financial institution directly for further information.

Pay Advantage cannot override payment restrictions imposed by the customer's bank.

What Happens to the Customer's Money?

If a PayID payment is rejected after the funds have been transferred, the money is automatically returned to the customer's originating bank account.

The customer may see:

• The original outgoing PayID transfer.

• A separate incoming credit showing the returned funds.

The time it takes for the returned funds to appear may depend on the customer's bank.

If the customer cannot locate the returned funds, we recommend they contact their bank for assistance.

How Can I Prevent PayID Payment Failures?

To help reduce the likelihood of failed PayID payments:

• Transfer the exact amount displayed: Remind customers to pay the full amount shown on the PayID payment screen, including any applicable fees.

• Avoid rounding payment amounts: Even a difference of one cent can result in the payment being rejected.

• Use the current payment link: Customers should use the PayID details provided for their current payment request.

• Review your on-charging settings: Check whether PayID processing fees are being passed on to customers.

• Make customers aware of additional fees: If on-charging is enabled, ensure customers understand why the payment total may differ from their invoice amount.

Need Assistance?

If your customer's PayID payment has been refunded and you're unsure why, our Customer Support team is happy to help.

Phone: 1300 641 310

Email: support@payadvantage.com

You can also contact us through the live chat feature within your Pay Advantage account.

Related articles

• Payment Methods and Fee Settings

• How to create a PayID payment

• Pay Advantage Fees Explained