Refund

Overview

The refund method returns funds to a customer's payment method after a successful payment. Use this for returns, cancellations after fulfillment, or goodwill adjustments.

Business Use Case: A customer returns an item they purchased. The original payment was already captured. You process a refund to return their money.

Purpose

Why use refund?

Scenario	Benefit
Product returns - Refund customers for returned merchandise
Service cancellation - Refund for unrendered services
Goodwill gestures - Partial refunds for service issues
Duplicate charges - Correct accidental charges

Request Fields

Field	Type	Required	Description
merchantRefundId	string	Yes	Your unique refund reference
connectorTransactionId	string	Yes	The connector's transaction ID from the payment
refundAmount	Money	Yes	Amount to refund (can be partial)
reason	string	No	Reason for refund
metadata	object	No	Additional data (max 20 keys)

Response Fields

Field	Type	Description
merchantRefundId	string	Your refund reference (echoed back)
connectorRefundId	string	Connector's refund ID (e.g., re_xxx)
status	RefundStatus	Current status: PENDING, SUCCEEDED, FAILED
refundAmount	Money	Refund amount
error	ErrorInfo	Error details if status is FAILED
statusCode	number	HTTP-style status code (200, 422, etc.)

Example

SDK Setup

const { PaymentClient } = require('hyperswitch-prism');

const paymentClient = new PaymentClient({
    connector: 'stripe',
    apiKey: 'YOUR_API_KEY',
    environment: 'SANDBOX'
});

Request

const request = {
    merchantRefundId: "refund_001",
    connectorTransactionId: "pi_3Oxxx...",
    refundAmount: {
        minorAmount: 1000,
        currency: "USD"
    },
    reason: "Customer returned item"
};

const response = await paymentClient.refund(request);

Response

{
    merchantRefundId: "refund_001",
    connectorRefundId: "re_3Oxxx...",
    status: "PENDING",
    refundAmount: {
        minorAmount: 1000,
        currency: "USD"
    },
    statusCode: 200
}

Refund vs Void vs Reverse

Action	When to Use	Timeline
Void	Before capture, during authorization hold	Same day
Reverse	After capture, before settlement	Same day
Refund	After settlement	5-10 business days

Next Steps

• getRefund - Check refund status

• capture - Ensure payment is captured before refunding

• void - Cancel if still in authorized state