You can refund the amount to your customer almost instantly using Instant refunds. This provides a better user experience for them. This also helps in improving their reliability and trust in your business.
When an Instant refund request is sent to Razorpay, the refunds are processed instantly by our system. The customer receives the refund within minutes (or an hour, sometimes) on their original payment source.
Following is a typical flow for instant refunds:
We support the following payment methods for Instant refunds. The list of banks that support Instant refunds differs according to payment methods.
Refunds are sent back to the original payment method used in making the payment. For example, if a credit card was used to make the payment, the refund amount was pushed to the same credit card.
For all credit card transactions, the time taken depends on the amount to be refunded:
Time Taken for refund
Up to ₹2 lakhs
Credited immediately to the customer's account.
More than ₹2 lakhs
Credited within two hours during business hours.
For refunds raised beyond working hours, it can take up to 1 business day for the refund to reflect in the customer's account.
Razorpay charges a small transaction fee to process Instant refunds. The fees is deducted directly from your account balance and reflects under the Refunds tab on the Razorpay Dashboard. In cases where the Instant refund fails and the refund takes 5-7 working days, the levied fee is credited back to your account balance. The fee break-up is shown in the end-of-the-month invoice generated by Razorpay. You can view and download the details from the Instant Refunds Reports from the Razorpay Dashboard.
For more details about pricing, contact our Support team.
You can perform the following actions: