A customer of mine placed a order a few months ago while I was using Shopify payments but now I’m using stripe payments. If I process a refund for this customer where does the money come from? My stripe account? Or does it come from Shopify payments? Also what will happen if I don’t have enough money in my bank account to cover the refund? Please let me know.
Topic summary
A merchant asked how refunds work when switching from Shopify Payments to Stripe, specifically where refund funds come from for orders originally paid through Shopify Payments.
Key clarifications provided:
- Refunds are processed through the original payment method (Shopify Payments in this case, not Stripe)
- Shopify fronts refund amounts immediately to customers, then recoups funds from the merchant’s next payout
Insufficient funds scenarios:
- EU/UK/Asia-Pacific stores: Remaining balance deducted from subsequent payouts until covered
- US/Canada/Australia: Funds debited directly from linked bank account on payout day
- If account has negative balance, refunds may show as “Pending” until sufficient sales generate positive balance
Additional questions raised:
- Whether Shopify has limits on fronting multiple refunds simultaneously (25 orders mentioned)
- How to configure direct bank account debits for refunds instead of payout deductions
These follow-up questions remain unanswered. Merchants can track refund details through Settings > Billing > Finance Overview.
Hey, @Mbirth .
Thanks for bringing your question to our Community forum. I noticed you are new to our forums - welcome! I’d be happy to take a look into this with you.
To clarify, since the original payment was made through Shopify Payments, the refund will be processed the same way. When a refund is processed on Shopify Payments, the funds are immediately sent back to the customer’s credit card. Initially, Shopify fronts the funds for the refund so that the funds are returned to the customer as quickly as possible and to ensure we adhere to banking industry standards/best practices. Shopify then reclaims those funds from your next payout.
To gather a little bit more context, where is your business located? If your payout doesn’t have enough funds for a return, then there are different outcomes depending on where you are located. For stores located in:
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Austria, Denmark, Germany, Hong Kong SAR, Ireland, Italy, Netherlands, Singapore, Spain, Sweden, New Zealand, and the United Kingdom, the remainder of the refund is deducted from the next payout until the refunded amount is covered.
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United States, Canada, and Australia, the balance is debited from your bank account on the day of the payout.
Keep in mind, if your Shopify Payments account already has a negative balance from any previous refunds, then you might not be able to issue a refund. Refunds are listed as Pending until you have made enough sales to have a positive balance in your Shopify Payments account, and then you can successfully issue a refund. With that said, in order to access the total amount of refunds associated with your Shopify Payments account you need to be logged in as the account owner. Once logged in, head over to Settings > Billing, and scroll to the bottom of the page to find the Finance Overview. Click “View Finance Overview”, and you’ll be able to set a date range to view your Charges, Refunds, Adjustments, Fees, and Total Payouts for the selected range. You can learn more about processing refunds in our help document: Creating returns and refunds.
In the meantime, may I ask why you decided to move over to Stripe? Please let me know if you have any questions about that. I’m more than happy to help.
Best,
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Hey, @Mbirth .
Luna here! Just checking in with you. Did this help clarify your question? I’d be happy to continue working on this together otherwise.
Warmly,
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Payment can’t go through if you don’t have enough funds 
So say I have 25 orders that I need to refund and my current shopify balance is positive or at 0. Will all 25 refunds be proccesed and refunded - and how much does shopify front when refunding, is it unlimited or is there a limit? Asking for a client who’s store I am working on.
How would i have shopify take the refund money from the bank account instead?