Pending Refund

Solved
Highlighted
New Member
10 0 0

Hi,

Can please someone from Shopify Staff get in touch regarding Pending Refund? The refund was issued yesterday to my customer through the admin panel of my store. I didn't bother to fill the return part of the process since the customer has already returned the product to me. The admin panel of my store shows the status of the refund as approved but in Transactions, I see it as 'Pending' and the funds are still in my bank account. I would like to know how much time it will take for the funds to go to my customer so I can contact him and provide this information.
Looking forward for your reply!

0 Likes
Highlighted
Shopify Staff
Shopify Staff
798 94 134

Hi, @Nick-K,

Hank here from Shopify.

The timeframe for refunding a customer can vary based on a number of factors. The most common being the payment gateway you are using, and the bank or payment provider from the country that the customer is located in.

Most refunds are processed by banks within 3-5 business days, however, some countries can take up to 10 business days. I have more information on refunds for you here.

If you are using Shopify payments, that guide also advises as to the potential reason for it appearing as pending in transactions.

But as you are seeing the refund as approved, you can advise your customer that the refund is dependant on their chosen payment provider and the refund timeframes. They may be able to query this with their chosen bank/payment provider as to when the refund may arrive in their account.

Let me know if you have any additional questions!

All the best,

Hank

Hank | Social Care @ Shopify 
 - Was my reply helpful? Click Like to let me know! 
 - Was your question answered? Mark it as an Accepted Solution
 - To learn more visit the Shopify Help Center or the Shopify Blog

0 Likes
Highlighted
New Member
10 0 0

Hi, Hank

Thank you for your reply! Both I and the customer are from the same country (UK), I'll wait a few business days and report back if I need further assistance.

Cheers

0 Likes
Highlighted
Shopify Staff
Shopify Staff
798 94 134

You are very welcome!

Do reach back out to us if you need anything, stay safe, and have an awesome weekend!

Hank | Social Care @ Shopify 
 - Was my reply helpful? Click Like to let me know! 
 - Was your question answered? Mark it as an Accepted Solution
 - To learn more visit the Shopify Help Center or the Shopify Blog

0 Likes
Highlighted
New Member
10 0 0

Hi, Hank

The customer reported back to me that he received the refund but the status in Transactions is still "Pending", and the money are actually still in my bank account. Can you please let me know if this is normal? Is there any chance that Shopify itself made the refund and now after my next transaction I will be deducted the amount for the refund? I would really like to know how the whole refund process works.
Once again, thank you for your cooperation!

0 Likes
Highlighted
Shopify Staff
Shopify Staff
798 94 134

You are very welcome, my friend and I'd be more than happy to go through the process with you.

Can you confirm what payment gateway you are using? That way I can provide you with the most accurate information.

Hank | Social Care @ Shopify 
 - Was my reply helpful? Click Like to let me know! 
 - Was your question answered? Mark it as an Accepted Solution
 - To learn more visit the Shopify Help Center or the Shopify Blog

0 Likes
Highlighted
New Member
10 0 0

Hi, Hank

I am using Shopify Payments as a gateway. Let me know, if you need any additional information.

Thanks

0 Likes
Highlighted
Shopify Staff
Shopify Staff
798 94 134

Thank you for confirming that my friend.

Essentially Shopify payments work differently in terms of refunds, as it is all surrounding your payouts, both past and upcoming. The guide I shared above explains this in detail, but I've taken the screenshot which I will share below for ease.

 

16-18-665og-5x7ui

 

As that guide shows, pending normally means that your payout may be in a negative balance (you may have just recently had a payout), so Shopify has temporarily covered the refund for your customer.

A key point to note as you mentioned you are in the U.K is "United Kingdom, the remainder of the refund is deducted from the next payout until the refunded amount is covered."

The process can differ as I mentioned, but Shopify payments use the above process. 

Let me know any questions you have.

Hank | Social Care @ Shopify 
 - Was my reply helpful? Click Like to let me know! 
 - Was your question answered? Mark it as an Accepted Solution
 - To learn more visit the Shopify Help Center or the Shopify Blog

0 Likes
Highlighted
New Member
10 0 0

Hi, Hank

Thank you once again for your detailed reply! So just to make sure I got it right - basically Shopify sends the Refund amount back to the customer and at this point, I owe the Refund money to Shopify (the money will be deducted from my future sales/balance). I am trying to understand the meaning of "Pending" - at this point, my refund is pending and owed to Shopify, not to my customer, correct? If that's the case, that's alright, my main goal is to refund my customer as quick as possible and as long as he gets his refund, I am alright with owing the refund money to Shopify. 
Please let me know if you can confirm I am understanding the process right, and also if there's a way to use my bank account to pay the refund money to Shopify directly from my bank account.

Thanks, Nick

0 Likes
Highlighted
Shopify Staff
Shopify Staff
798 94 134

This is an accepted solution.

That is correct buddy, but it all depends on the payout status.

Let us use an example here. Say the account payout balance is 0 as all positive funds have been paid out previously. Then a refund is issued on the account for €/£10GBP, which now means there is now a balance on the account of -(€/£10).

If the next order you receive is €/£5, then the funds from this new order will go towards the negative balance, decreasing it to €/£5. A further €/£5 would then be taken from the next order to come in so the full negative balance would be covered. After the balance is covered, positive payouts will resume on the account.

So Shopify would cover the refund so that your customer gets refunded sooner, rather than having to wait for future orders to come through, and the statement would change from Pending once the balance has been covered.

With regard to your question about using your own bank account, as Shopify is not a bank, we would not have this process built-in, but don't worry, Shopify is happy to assist you, and does not want your store being affected by any returns, etc.

Let me know if you need anything else, my friend!

Hank | Social Care @ Shopify 
 - Was my reply helpful? Click Like to let me know! 
 - Was your question answered? Mark it as an Accepted Solution
 - To learn more visit the Shopify Help Center or the Shopify Blog

0 Likes