Long story short, I have had to refund a number of orders due to supplier issues. Shopify says refunds are deducted from future payouts however I stopped taking orders due to this supply issue so have no pay outs due and won't for the foreseable.
Will Shopify go to my card/bank account to take the money for the refunds? Obviously this is fine to do but I want to make sure my customers get their refund and I haven't slowed it getting to them...Can I upload funds to my shopify account maybe?
Any help appreciated guys - thanks.
Lulu here from the Shopify Support team. Thanks for reaching out here, and I'll be more than happy to help you out.
Sorry to hear that you have had supplier issues! With the refund process, it does depend where you are based. In some Shopify Payment countries, Shopify cannot debit your bank account directly. In that case, when you process a refund on Shopify Payments, the funds are immediately sent back to the customer's credit card. Initially, Shopify actually fronts the funds for the refund on behalf of the merchant so that the funds are returned to the customer as quickly as possible and to ensure we're adhering to banking industry standards/best practices. Shopify then reclaims those funds from future payouts.
Even though refunds are issued immediately back to the customer, they can take a few days to appear on the customer's statement, depending on their bank's processing times. When the customer is in a different country to you, this timeframe can be significantly longer.
I totally understand that you won't be taking orders in the near future but the funds will remain reserved in future payouts until the balance has been paid back. When you do start taking orders again on your Shopify Payments account then you will see funds been used to cover the refunds.
I hope this makes a bit more sense to you now, but please let me know if you need any more clarification or if you have any other questions.
Lulu | Social Care @ Shopify
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