Handling Refunds

This guide explains how to process refunds for customer orders through your Stripe Express account.

Refund Basics

When you need to return money to a customer:

1. Refunds should be initiated through the retailer
2. The refund will be processed through your Stripe account
3. The refunded amount is deducted from your available balance
4. If a payment has already been paid out, the refund amount may create a negative balance

Initiating a Refund

To issue a refund:

1. Log in to the Stripe Express Dashboard
2. Locate the order you need to refund
3. Select "Issue Refund" from the order actions
4. Choose between a full refund or partial refund
5. For partial refunds, specify the amount to refund
6. Add a reason for the refund (optional)
7. Confirm the refund

The Jay marketplace will then trigger the refund payout through Stripe.

Full vs. Partial Refunds

• Full refund: Returns the entire payment amount to the customer
• Partial refund: Returns only a portion of the payment

Partial refunds are useful when:

• Only some items in an order need to be refunded
• You're providing a partial refund for service issues
• You're keeping a portion of the payment as a restocking fee
• You don't refund paid shipping costs

Refund Timeline

Refunds typically process as follows:

1. Initiated: The refund request is submitted to Stripe
2. Processing: Stripe is processing the refund (usually 1-2 business days)
3. Completed: The refund has been issued to the customer's payment method

While Stripe processes refunds immediately, it may take 5-10 business days for the funds to appear in the customer's account, depending on their payment method and bank.

Refund Limitations

Be aware of these important limitations:

• Refunds can only be issued for payments processed within the past 90 days
• You cannot refund more than the original payment amount
• Refunds may be subject to time limits set by card networks or banks
• Processing fees are typically not returned on refunds

Viewing Refund History

To view your refund history:

1. Log in to your Stripe Express Dashboard
2. Go to the "Payments" section
3. Use the filters to show refunded payments
4. Click on any refunded payment to see details

Refund Impact on Your Balance

When you issue a refund:

1. The refunded amount is deducted from your Stripe balance
2. If the original payment was already paid out to your bank account, the refund may create a negative balance
3. Future payments will be used to cover any negative balance

Refund Fees

The fee structure for refunds is as follows:

• Stripe processing fees are not refunded for most payment methods
• Jay marketplace fees follow the policy outlined in your retailer agreement

Disputes vs. Refunds

Voluntary refunds differ from disputes (chargebacks) in important ways:

• Refunds: You voluntarily return funds to the customer
• Disputes: The customer forces a refund through their bank or card issuer

Proactively refunding dissatisfied customers can help prevent disputes, which carry additional fees and can negatively impact your account standing.