We paid a partial refund to a customer - funds left our shopify account.
The customer has since advised us, and insists that that credit card that made the initial payment has been closed and according to his bank funds have been returned to us.
Where or how would this reflect in Shopify? I have been through the payout reports and can see no sign of the funds being returned to us.
I have looked at the customer notes - last I can see is when the refund was paid and funds were taken from our account?
Thanks for outlining your query for us here in the Community.
It would be difficult to tell from here what might be happening with this payment, as we are unable to access or discuss your account specifics publicly.
That said, I can share some info on what would usually happen in terms of Shopify Payments refunds made to cancelled cards.
Refunds can only be issued to the card that was initially used for payment. When a merchant issues a refund to a cancelled card we can’t say for sure what the bank does with those funds, so it’s always best to have the cardholder reach out to their bank.
Usually, the bank would reroute that refunded credit to:
A) An alternative account that the customer has with that bank
B) To a holding account that is not specifically associated with the cardholder (in these cases, eventually reconciling the refund with the intended recipient by issuing a paper cheque or similar).
If front-of-house bank representatives are unsure of what has happened, they can escalate the investigation to a different team or a manager. It is very rare that the bank will send the funds back to our processing partners, so it is a good idea for the cardholder to ask to speak with a manager at the bank.
I’d advise you to let the customer in question know they would need to work with their bank or card issuer in this, and that they may need to escalate their query in order to get more info.
I trust this info will help to guide you and your customer to a satisfactory resolution!