I have a customer who returned their order and we refunded them. However they have since been in touch to say they had closed their bank account and so have not received the refund. The money came directly from our shopify payout so our bank was bypassed, but I can't see any funds coming back into our shopify balance from this. I asked them to contact their bank and they said that no funds have come through. What should I do from here? I've just asked for a letter from the bank confirming what she says is true. Appreciate any help!
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If your customer’s bank account is closed, the funds will typically stay in limbo, waiting to be paid at the bank level. Your customer would want to contact their issuing bank to arrange an alternative method to receive funds via check, cash, etc. Sometimes if attempting to refund to a VISA card, VISA has rules around allowing refunds to invalid cards. But you would have received a decline code when attempting to process the refund.
I would recommend showing a screenshot confirming the refund was pushed on your end and let them know that the funds are no longer with your business and that they will need to arrange the collection of their funds through their bank.