Shopify Payments refunds

On this page, you can find information on how to process refunds with Shopify Payments.

Processing refunds with Shopify Payments

When you issue a refund through Shopify Payments, the refunded amount is deducted from your next available payout. Initially, the refund status will be marked as Pending for up to 2 business days, during which the funds are processed back to your customer. However, due to varying processing times at your customer's bank, it might take up to 10 business days for the refunded amount to be received. Refunds are processed in accordance with your payout schedule and are typically scheduled for the next payout.

Transaction fees

When processing a refund, no additional transaction fee is incurred. However, the original credit card transaction fee isn't refunded to you when issuing a refund.

Tracking refunds with Acquirer Reference Numbers (ARNs)

To track the refund transaction, you can locate the Acquirer Reference Number (ARN) in the order timeline under the refund details. ARNs are assigned to refunds processed through Shopify Payments for transactions involving Visa or Mastercard. These unique reference numbers can be used by banks and credit card providers to trace transactions.

Resolving disputes

If a customer claims that they haven't received their refund, then you can provide them with the ARN and advise them to reach out to their credit card provider for further investigation.

Insufficient funds with Shopify Payments

If you're using Shopify Payments and you encounter a situation where your payout lacks sufficient funds for a return, then the outcome varies depending on your store's location:

  • Austria, Australia, Belgium, Canada, Czechia, Denmark, Finland, Germany, Ireland, Italy, Netherlands, New Zealand, Portugal, Spain, Sweden, Switzerland, United Kingdom, United States: The balance required for the refund will be debited from your bank account. This debit will occur on a day outside your regular payout schedule.
  • All other countries: The remaining amount needed for the refund will be deducted from subsequent payouts until the refunded amount is fully covered.

Failed debit attempts with Shopify Payments

If the initial debit attempt fails, then a second attempt will be made after 3 business days. If this reattempt also fails, then you will need to change your Shopify Payments bank account or repay the negative balance manually.

Managing negative balances

If your Shopify Payments account displays a negative balance and the refund status remains Pending for more than 2 business days, then the resolution process varies based on your store's location:

  • France, Hong Kong SAR, Japan, Romania, Singapore: Negative balances will be cleared by future sales.
  • Europe (using a non-Euro bank account): Negative balances will be cleared by future sales.
  • All other countries and currencies: The negative balance will be debited from your bank account.

Shopify Recovery team

Depending on the balance, and how long it's been pending, the Shopify Recovery team might reach out to you directly to address the negative balance, and to keep your Shopify Payments account in good standing.

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