As an online business owner, you are answerable to complex customer questions like, “where are my refunds? why are they taking time? when will I get them back?” and more. Generally, these questions arise from a few typical scenarios, hypothetically listed down below:

Scenario 1: Customer orders food via an app and uses a credit card to pay. After a while, he/she cancels the order.  

Scenario 2: Your customer buys ethnic wear online. When the product arrives, he/she realizes the disinterest or misfit in the order and returns it. 

Scenario 3: Customer books online movie tickets and makes the payment online itself. He/she receives a transaction successful message but the booking is not complete yet.

Refunds are needed in all three scenarios. Before you hit the “refund” button on your dashboard here’s what you need to know:

  • How do refunds take place?
  • Why they take time?


Today, any successful online business will have a payment gateway integrated with their business. A payment gateway plays the role of a mediator between the customer and the bank. Let’s briefly understand the role of a payment gateway:

payment settlement process for refunds infographic

Image Source: PayUmoney Blog – What is a payment gateway & how it works? 

From the infographic, it is clear that payment processing involves multiple entities. Each and every entity is important, as the payment will not be successful in the absence of either of them.  

Take a look at the settlement process explained in a very crisp and concise manner in the presentation below:

Why Refunds Take Time? 

Just like online payments are processed via a payment gateway, refunds process in the same way as well. All the entities are involved in the refunds scenario. They have their own methods, mechanisms and authentication factor to process online payments. Many of these processes require human assistance and not automation. A slight delay in these processes at any point delays the further process. Which in turn prolongs the refund timeline.

In usual cases, customers receive refunds in their accounts within 5-10 days. However, in some exceptional cases, it might take over 10 days mainly due to technical faults.

How To Process Refunds In Time?

As a business, timely refund processing is not in your hands. Clear and direct communication between all the payment processing entities is the key. For example, the issuing bank fails to update the acquiring bank about the transaction.

Thus, to have the best payment gateway such as PayUmoney integrated with your business is a must! It supports you to carry your business forward smoothly and quickly.

Easy PayUmoney Refund Process

As per sources, in an e-commerce scenario, at least 30% of all products ordered online are returned as compared to 8.89% in physical stores.

Referring to these statistics, processing refunds on PayUmoney dashboard is pretty straightforward. There are 2 refund options available in the new improved and updated PayUmoney dashboard.

  1. Partial refunds: you can refund the desired amount of the total amount
  2. Full refunds: you can refund the full amount

Check out what each status stands for in detail and how to select the apt refund status in the video.

With all your marketing efforts for your business in place, it’s a good idea to have an all-in-one payment solution in place as well. Now to enjoy the best payment gateway experience and grow your business effortlessly! 


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