Q: 5. Do all refunds (including Instant Refunds) always return a 'processed' status instantly via the Refund API?

No, not all refunds return 'processed' instantly. Instant Refunds (Optimum Speed): If the refund is successfully processed instantly, the API response will typically show a processed status immediately or shortly after. Normal Refunds (Standard Speed) or Failed Instant Refunds: If the refund defaults to the normal processing speed (5-7 business days) or if the API call is synchronous but the bank processing takes time, the initial API response might return a pending status. In all scenarios, rely on the refund.processed webhook for the final, verified status update to ensure your application records are correct.

Question 1

1. How do I initiate a refund?

Accepted Answer

You can issue partial or full refund using:

Dashboard
.
APIs
.

By default, the entire amount is refunded. If you issue a partial refund, ensure the partial refund option is selected and enter the desired value in USD.

Watch Out!

Razorpay issues immediate refunds. Once a refund is issued, it cannot be canceled or reversed.

Question 2

2. Do you charge for a refund?

Accepted Answer

No, we do not charge for the regular refunds. However, fees charged for a captured payment are not reversed.

Question 3

3. I am unable to refund a payment. What do I do?

Accepted Answer

If your current balance is less than the amount you are trying to refund, you can initiate the refund once you receive further payments.

Question 4

4. When a refund is initiated, can its status remain 'pending' until settlement? How should I track the final status (processed/failed)?

Accepted Answer

Yes, a refund status can remain in a 'pending' state, particularly when the refund cannot be processed instantly. This state indicates that the refund has been accepted by Razorpay but is still being processed by the bank or payment network.

The refund.processed webhook is the most reliable and recommended way to receive the final status update (Processed, Failed or Reversed).

We strongly suggest implementing both the Refund API response handler (for immediate status) and the refund.processed webhook (for the definitive final status update) to ensure reliable status tracking and update your inventory/ledger accurately.

Question 5

5. Do all refunds (including Instant Refunds) always return a 'processed' status instantly via the Refund API?

Accepted Answer

No, not all refunds return 'processed' instantly.

Instant Refunds (Optimum Speed): If the refund is successfully processed instantly, the API response will typically show a processed status immediately or shortly after.
Normal Refunds (Standard Speed) or Failed Instant Refunds: If the refund defaults to the normal processing speed (5-7 business days) or if the API call is synchronous but the bank processing takes time, the initial API response might return a pending status.

In all scenarios, rely on the refund.processed webhook for the final, verified status update to ensure your application records are correct.

Frequently Asked Questions (FAQs)

1. How do I initiate a refund?

2. Do you charge for a refund?

3. I am unable to refund a payment. What do I do?

4. When a refund is initiated, can its status remain 'pending' until settlement? How should I track the final status (processed/failed)?

5. Do all refunds (including Instant Refunds) always return a 'processed' status instantly via the Refund API?