Why are refunds pending instead of processing instantly on Shopify Payments?

Since the 21st Jan 2023, it appears Shopify Payments have changed how they process our refunds. We are a UK store and previously a refund would be “successful” and processed when we hit refund. Since the 21st, refunds go to “pending”. I can’t see any way to see when the refund will be processed and the refunds appear to then be backdated on the total sales graph in the admin panel when they do process (seemingly 24 hours later?).

We have a positive balance (although I believe in the UK this doesn’t matter). We process a lot of refunds, which is normal for our store/sector. Shopify support are on radio silence, and no replies forthcoming. Anyone else experiencing/experienced this?

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Yes! Having the exact same issue here. And radio silence from Shopify is really frustrating! We have no way of telling when the refund will process, and the customer isn’t getting the email notification at the time of it being processed. That means we are having to email them separately. We are UK too, and positive balance on all ££ accounts (inc PayPal). It would have been helpful if Shopify had advised in advance, or even responded to these enquiries in the community to clarify. We need to be able to manage our customer expectations.

Hi, yes we started experiencing this yesterday. All refunds through Shopify Payments are showing as pending, we also have a positive balance. Paypal refunds are processing instantly as normal. We did get a response from Shopify saying it will take 48hrs for the refund to be processed. So we’ll wait until tomorrow to see if the refunds have gone through. I am assuming that at that point the customer will receive the automated refund email…

Our scheduled payout from yesterdays trading is not accounting for the pending refunds either, which was happening until yesterday.

Are you seeing a 48 hour lag in your refunds and having the same reflected in your payouts?

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That all sounds exactly the same as what is happening with us. I don’t really mind the lag in the refunds to be fair. However, the email not being sent to the customer to advise that it is being processed is really frustrating and feels like very poor customer care. A customer waiting 48 hours for a response isn’t acceptable so we are having to update them separately. They really should have advised us of the change in advance. And frustrating that none of the @Shopify_77 team are responding with any clarity about the email and refund lag in the conversations in the community.

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Yesterday’s refunds have now all been processed. If it’s a 24 hour lag that’s not too bad. It would be nice to have the dashboard updated to take account of the refunds pending so we have an instant view of the days takings like before.

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Completely agree, the delay in sending the customer notification is problematic. You now can’t say we have processed the refund now as the email then arrives a day or two later (it would be great to know exactly when Shopify will process the refund) , making us look like we didn’t tell the customer the truth.

This is happening to me as well, since last week of January 2023. Been on to support, I even gave them screenshots of the refund system before and after the change. They keep telling me that nothing has changed! They won’t admit it has changed at all. The worst part of it is that the summary i download each morning is wrong, because after yesterdays refunds have completed, the summary report changes. It’s causing me a headache with my day to day accounting. I’ll have to do weekly accounting instead and wait until Tuesday to make sure all of last week’s analytics are correct. I’m pretty tired of Shopify support not having an answer and instead replying to me with a complete load of rubbish then offering me tips about my website. I don’t want your tips, I want a straight answer to my questions please.

Can anyone at @Shopify_77 comment on this? Why is it that refunds are taking so long to appear in the dashboard? Customers shouldn’t have to wait 2 days to get a notification, and this is hell on our accounting as well. This is another thing that worked pretty well before and now does not. @Shopify has become really good at fixing problems that don’t exist.

Have had multiple customers complaining they aren’t getting their refunds, transaction is showing as successful in the admin. It has been 12+ business days.

Shopify aren’t helpful, anyone else having this issue?

Yes, having the same issue almost all refunds are now processing within 48 hours , not instantly. Customers are getting notifications that should not be. I have had to deal with 2 customers that said they never received a refund yet. I also had one refund that failed the processing, and I never received any notification!!! Which the customer reached out to me and I had to reprocess it, and it went through the 2nd time (24 hours later).

Also does anybody know if you can search 'Pending" refunds in your orders screen?

From Shopify (Juan):

“Unfortunately, we were unable to locate the feature you were referring to that used to display pending refunds in the payout transaction list. After consulting with our analytics team, it appears that there is currently no way to view pending refunds…
However, you should be able to see the refunds once they have been processed and deducted from your payout. You can view these in your Billing history in your Shopify admin.”

Not at all what we were previously able to see…

From Shopify (Juan):

“Unfortunately, we were unable to locate the feature you were referring to that used to display pending refunds in the payout transaction list. After consulting with our analytics team, it appears that there is currently no way to view pending refunds…
However, you should be able to see the refunds once they have been processed and deducted from your payout. You can view these in your Billing history in your Shopify admin.”

Not at all what we were previously able to see…