Refunds

Refundable funds are the funds you can use right now to pay a shopper’s refund in the same currency as the original payment. Refundable funds come from:

1. Unsettled funds: recent payments that have not been settled to your Wallet yet.
2. Available balance: funds already settled to your Wallet.

Refundable funds are calculated per settlement currency.

A refund succeeds only when at least one source - either unsettled funds or available balance - can fully cover the refund amount, and the combined total of both is at least equal to the refund amount.

This works in the following manner:

• If unsettled funds ≥ refund, we fund from unsettled funds and deduct the refund amount from your next settlement.
• If unsettled funds < refund and available balance ≥ refund, we fund from the available balance by reserving the reserve amount now from your Wallet (into your Wallet reserve balance), then releasing the reserve and deducting the refund amount at the refund settlement time.
• If neither source can fully cover the refund, the refund fails. You can retry after additional sales accrue or after topping up your Wallet.

These are the steps you need to follow for operating refunds.

1. Use the Airwallex API or web app to create a refund against a specific Payment Intent (or Payment Attempt if you require so). You can perform a full or partial refund; if you make a partial refund several refunds can occur until the principal is fulfilled. If your refund request fails to be processed, please make sure you have enough unsettled funds or available balance for refund.

2. You will be immediately informed that the refund request has been received and is being processed.

3. You will be notified when the refund has succeeded through our asynchronous notifications.

There are four possible statuses for refunds. Detailed explanations and a status transition diagram are provided below.