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

Key outcomes:

• Funds returned to customer

• Refund record created

• Transaction reaches REFUNDED or PARTIALLY_REFUNDED status

Request Fields

Field	Type	Required	Description
merchant_refund_id	string	Yes	Your unique refund reference
connector_transaction_id	string	Yes	The connector's transaction ID from the payment
amount	Money	No*	Amount to refund (*ommit for full refund)
reason	string	No	Reason for refund
metadata	dict	No	Additional data (max 20 keys)

Response Fields

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

Example

SDK Setup

from hyperswitch_prism import PaymentClient

payment_client = PaymentClient(
    connector='stripe',
    api_key='YOUR_API_KEY',
    environment='SANDBOX'
)

Full Refund Request

request = {
    "merchant_refund_id": "refund_001",
    "connector_transaction_id": "pi_3Oxxx...",
    "reason": "Customer returned item"
}

response = await payment_client.refund(request)

Partial Refund Request

request = {
    "merchant_refund_id": "refund_partial_001",
    "connector_transaction_id": "pi_3Oxxx...",
    "amount": {
        "minor_amount": 500,  # $5.00 of $10.00
        "currency": "USD"
    },
    "reason": "Discount applied"
}

response = await payment_client.refund(request)

Response

{
    "merchant_refund_id": "refund_001",
    "connector_refund_id": "re_3Oxxx...",
    "status": "PENDING",
    "amount": {
        "minor_amount": 1000,
        "currency": "USD"
    },
    "status_code": 200
}

Refund Timeline

Typical processing times:

• Credit cards: 5-10 business days

• Debit cards: 5-10 business days

• Digital wallets: Instant to 24 hours

Error Handling

Error Code	Meaning	Action
402	Refund failed	Payment not captured, already fully refunded, etc.
404	Transaction not found	Verify connector_transaction_id
422	Invalid amount	Partial refund exceeds available balance

Best Practices

• Always use unique merchant_refund_id for idempotency

• Store connector_refund_id for tracking

• Poll or handle webhooks for final status

• Partial refunds require explicit amount field

Next Steps

• get_refund - Check refund status

• capture - Ensure payment is captured before refunding

• Event Service - Handle refund webhooks