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Hi,
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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This is an accepted solution.
Hey, @BecNolan
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.
Dirk | Social Care @ Shopify
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This is an accepted solution.
Hey, @BecNolan
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.
Dirk | 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
Hello,
I refunded a customer and he then said the account was closed. If the account was closed then the refund payment attempt should be shown as unsuccessful on our end and bounce back. It is not acceptable for funds to remain in limbo held by the banks. I have worked with other payment gateways and unsuccessful refunds always bounced back to our merchant account within 24 hours. That way we saw it and could ask them for bank account details to pay the refund. I have had this problem with Shopify before. Customers' refunds disappear and the banks say they have not received it and have no way to track it. Please explain what the customer needs to do to claim their refund.
Thanks for your help
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