If your customer purchases a product from your website or app using the Debit Card EMI option and raises a refund request, only a full refund request can be raised.
Debit Card EMI does not support multiple partial refunds as order information, or product details are not sent to the bank processing the EMI payments. Razorpay team shares the reconciliation file with the bank, and the bank refunds the amount based on the calculations.
Note:
- For DC EMI, only a full refund is allowed. A partial refund is not supported.
- The interest paid for EMI payments cannot be refunded and is directly managed by the issuing bank.
Refer to the following examples about how the refund is processed for Debit Cards EMIs:
- A customer purchases 3 products - Product A, B and C, in a single payment using the Debit Card EMI option. The customer cancels Product A within 5 days of purchase, and then cancels Product B on the 7th day. Here, a partial refund will not be supported as there are multiple items/orders, and Razorpay does not provide order-level split up to the bank. A full refund request can be raised with the bank for all the 3 products.
- A customer buys 2 products - Product A (₹2000) and Product B (₹7000). In a 3-month EMI plan, the customer needs to pay an EMI amount of ₹3100 (Total payment of ₹9300 in 3 months). After paying the first instalment, the customer returns Product A. In this case, for a Debit Card EMI option, you cannot raise a partial refund request for ₹2000. You will have to raise a full refund request for the entire amount of ₹9000. The interest of ₹100 that the customer paid as part of the first EMI instalment cannot be refunded.
Refer Debit Card EMI section for more details.
If a customer purchases a product on your website or app using the Credit Card EMI option, and requests for refund, there can be the following two scenarios in case the refund is processed:
- For a full refund request made by your customer, the complete principal amount is refunded.
- For a partial refund, the principal amount will be reduced by the amount that has been refunded.
Refer to the following examples about how a refund is processed for Credit Card EMIs:
- A customer purchases 2 products - Product A (₹2000) and Product B (₹7000). In a 3-month EMI plan, the customer needs to pay an EMI amount of ₹3100 (Total payment of ₹9300 in 3 months). The customer decides to return both Product A and Product B. In this case, for a Credit Card EMI option, the entire amount of ₹9000 will be refunded to your customer. However, the interest or any other processing charges levied for using the EMI option may not be reversed.
- A customer purchases 2 products - Product A (₹2000) and Product B (₹7000). In a 3-month EMI plan, the customer needs to pay an EMI amount of ₹3100 (Total payment of ₹9300 in 3 months). The customer decides to return Product A. In this case of partial refund, for a Credit Card EMI option, the principal amount of ₹2000 will be refunded to your customer. The remaining EMIs will be re-calculated basis the new principal amount, which is the Original amount - Refunded amount.
Note:
- The interest paid for EMI payments cannot be refunded and is directly managed by the issuing bank.
- Depending on the card issuer and their terms and conditions, the processing charges levied for using the EMI option may or may not be reversed.
- Whether it is a full refund or a partial refund, the GST and other charges already levied by the bank may not get refunded.
- To cancel a Credit Card EMI, your customer should contact the credit card issuing bank.
To cancel a Credit Card EMI, your customer must reach out to the bank.
For more information, refer the Credit Card EMI section.
The No Cost EMI Refund process is similar to a normal EMI refund process. The only difference is that the Principal Amount used in calculations is the amount after subtracting the discount amount.
Let us consider the example of buying a mobile phone worth ₹15000 using the No-Cost EMI on a 3-month EMI period. The bank charges 15% interest per annum. In this case, the retailer offers a discount of ₹367.33.
Original Cost of Mobile Phone
| No Cost EMI Discount Offered by Retailer
| Net Cost of Phone
| Total interest to be paid under EMI (In case of purchase on EMI)
| Final Price
| EMI for 3 months
|
---|
₹15000
| ₹367.33
| ₹14632.67
| ₹367.33
| ₹15000
| ₹5000
|
In the above example, the Principal Amount = ₹14632.67 (and not ₹15000). The original price is discounted by ₹367.33. This cost is borne by the retailer. For a bank charging 15% interest per annum with an EMI period of 3 months, the discount is 2.45%. The discounted amount is ₹367.33 (₹15000 * 2.45%).
Your customer will pay interest on a discounted amount of ₹14632.67. The interest paid by them would-be ₹367.33.
Note:
- Your customer may be charged cancellation charges by the bank over and above the refund amount.
- Interest already billed in a particular transaction is not refundable under any circumstances.
- The processing charges levied by the bank for using the No Cost EMI option cannot be refunded to the customer.
Refer No Cost EMIs section for more details.
Your customer purchases a product from your website or app using the Cardless EMI option and requests for a refund. Any EMI instalments paid by the customer is refunded to the same payment mode or account that was used to make the payment.
Note:
Razorpay does not do calculations for Cardless EMI.
Refer Cardless EMI section for more details.