Refunding a Payment

You can issue refunds for payments received via credit card or direct debit back to the customer’s original card or bank account. Both full and partial refunds are supported.

❗ Please note: BPAY payments cannot be refunded through the Pay Advantage platform. If a customer requests a refund for a BPAY payment, you will need to manage this outside of the system.

When a Refund Is Available

The Refund button will appear for a payment only if all of the following are true:

• The payment has cleared 

• The payment has not failed

• The payment is not part of a dispute

• The payment is not a BPAY transaction

How to Issue a Refund

1. From the side menu, go to Payments

2. Search for and open the payment you want to refund.

3. Click Refund Payment.

4. Enter a refund reason and confirm the amount you want to refund (full or partial). Then select Refund to submit.

How Refunds Are Processed Behind the Scenes

To refund a customer, funds must first be moved back from your account to the customer’s account. This is how it works:

1. Once a payment has settled into your account, Pay Advantage initiates a chargeback to recover the funds.

2. Those funds are moved back to Pay Advantage, and then we process the refund to the customer’s bank.

3. The customer’s bank must verify and clear the refund before it is complete.

4. This process can take up to 10 business days in some cases.

What if a refund can't be processed? 

If for some reason a refund can't be processed or a problem occurs, you will be notified on your Dashboard and be able to take action.

Navigate to the Dashboard of your account and select the Requires Attention section on the bottom left hand side of the page. Here you can view Refund Issues and Resolve these. 

From here you can:

• View the reason the refund failed.

• If required, select Cancel Refund.

• Once cancelled, the funds will be returned to your ledger.

• You can then arrange an alternative refund method for the customer, depending on the reason for the failure.

Refunds to Different Cards or Bank Accounts

For fraud prevention and compliance purposes, refunds should be processed back to the original payment method.

Refunds to Cards

If the original card is inactive or expired, the refund will still be processed to the same card account.

• Expired Cards
  Most banks will automatically transfer the funds to the customer’s linked account or issue a replacement card connected to the same account.
  The refund should still be received successfully.

• Closed or Inactive Cards
  If the card or account has been closed, the refund may be rejected by the bank and returned to the merchant.
  In these cases, additional action will be required.

If a Refund Cannot Be Processed to the Original Method of Payment

If a refund cannot be successfully processed to the original payment method:

1. Contact Your Customer
   Inform them that the refund could not be completed to their original card or account.

2. Request Alternative Details
   Ask the customer to provide an alternative payment method (e.g. a bank account).

3. Process a Manual Refund
   Issue the refund outside of Pay Advantage using the alternative details provided.

4. Keep Records
   Maintain clear records of:

   • Communication with the customer

   • Refund attempts

   • Final refund method

   This is important for audit purposes and in case of any future chargebacks.