Refunds
Refunds can be issued via the Stripe Dashboard, or from within Encircle using the steps below.
- Open the Payments page in Encircle.
- Select the transaction you wish to refund.
- Click Begin Refund.
- The default refund is for the full amount. For a partial refund, enter a different amount.
- Select a reason for the refund. If you select "other", you must provide an explanatory note.
- Click Refund.
Under the transaction details you'll see an Acquirer Reference Number (ARN) which you can share with your customer to help them trace the refund at their bank.
Refunds take 5-10 days to process and appear on the payee's account. *To enable automated refund receipts, toggle Refunds on in your Customer emails settings. If a refund receipt was not sent automatically, you many manually send one from Stripe.
Is there a refund fee?
When a refund is issued through Encircle Payments, the original processing fees from the transaction will not be refunded.
This means that while there is no additional fee to issue the refund, the percentage or capped fee that was initially charged for processing the payment (e.g., 2.95% for Visa/Mastercard, 3.5% for American Express, or 1% capped at $15 for ACH) is retained and not returned to your business when a payment is refunded. Refunds can be managed via the Stripe Dashboard or within the main Payments screen in Encircle
Refund Destinations
Per Stripe - refunds can only be sent back to the original payment method used in a charge. You can’t send a refund to a different destination, such as another card or bank account.
Refunds to expired or canceled cards are handled by the customer’s card issuer and, in most cases, credited to the customer’s replacement card. If no replacement exists, the card issuer usually delivers the refund to the customer using an alternate method (for example, check or bank account deposit). In rare cases, a refund back to a card might fail.
For other payment methods, like ACH and iDEAL, refund handling varies from bank to bank. If a customer has closed their method of payment, the bank might return the refund to us—at which point it’s marked as failed.
For more in-depth information about refunds, refer to Stripe's documentation.
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