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Managing Refunds

Some use cases require merchants or service providers to return money to their customers, like preventing fraud attempts, undoing duplicate or disputed payments, answering specific customer requests, or preventing money laundering attempts. In these cases, businesses refund received payments partially or completely. For an overview of how JustOn Cash Management supports these scenarios, see Refunds.

Typically, users initialize refunds based on the original payment in JustOn Cash Management. Certain circumstances, however, may require refunds to be initialized via a payment service provider. Depending on the approach, the involved operations differ:

Managing SEPA-Based Refunds

Typically, users initialize refunds starting from the original (SEPA-based) payment in JustOn Cash Management. This section describes possible operations.

Creating Refund

Users manually initiate refunds starting from the original payment. To do so:

  1. Open the payment for which you want to create a refund.

    To be eligible for refunds, payments must be of the type Payment and have the status Collected or Final.

  2. Click Refund.

    This opens the Edit Refund dialog, displaying a chart that shows the current use of the payment amount.

  3. Click Create Refund.

  4. Specify the refund amount and a refund reason.

  5. Click Create.

    This saves the refund data.

  6. Click Save, then Confirm.

    This completes the refund creation, closes the dialog and returns you to the payment.

    New refunds have the status Prepared and need approval before being eligible for the manual SEPA Credit Transfer order creation.

Managing Refund Approval

By default, new refunds have the status Prepared. Setting refunds Approved, marks them as ready for payout, that is, makes them eligible for the manual SEPA Credit Transfer order creation.

Approving Refund

To approve a refund in the status Prepared, keeping the original payment instrument:

  1. Open the refund to be approved.
  2. Click next to the Status field, and select Approved.

  3. Click Save.

    This makes the refund ready for payout.

Unapproving Refund

Users may have approved refunds by mistake. You can undo an approval, setting it Prepared again. To unapprove a refund in the status Approved:

  1. Open the refund whose approval you want to undo.
  2. Click next to the Status field, and select Prepared.

  3. Click Save.

    This revokes the refund approval, preventing the refund from being paid out and blocking the money again.

Creating Credit Transfer Orders From Refunds

JustOn Cash Management allows for issuing SEPA Credit Transfer (SCT) orders based on approved refunds, which, on their part, may be created manually or may be the result of a credit balance.

Note

Make sure that the button Credit Transfer is available on the Refund list view and the Refund Credit Transfer flow is active, see Enabling Credit Transfer.

To start the credit transfer order generation from approved refunds:

  1. Open the Refunds tab.
  2. Select the list view Approved Refunds.

  3. Select the refunds to be processed.

    Continuing without selection includes all listed refunds.

    Refunds to be processed in one go must be subject to the same bank access. The relevant bank access is determined via Bank Account on the refund or, if this is not set, via Preferred Bank Account on the business entity. Otherwise, the SEPA order creation and upload will fail.

  4. Click Credit Transfer.

    This displays the number of refunds to be processed.

  5. Click Next.

    This starts the SEPA order creation and upload. The page shows the job progress and log messages.

    pay_app_entry_sepa_ct_progress

    Even in case of an error, the job may still complete. To be sure of the credit transfer order generation, review the Error Message field of the failed refunds (using the list view Failed Refunds), or create a report to show the result.

    Clicking Finish returns you to the Refunds tab.

Info

In addition to manually creating a SEPA order for a refund, your organization can automatically issue approved refunds using scheduled payment runs. For details, see Configuring SEPA Payment Run.

Canceling Refund

Canceling a refund "reinstates" the money on the original payment. This makes it available for settlements again.

To cancel a refund in the status Prepared, Approved or Failed:

  1. Open the refund to be canceled.

  2. Click next to the Open Amount field, and set the value 0.

    Reducing the open amount of the refund reduces the blocked amount of the payment.

  3. In the Status field, select Canceled.

  4. In the Cancellation Reason field, select a cancellation reason.

    If necessary, you can specify a new cancellation reason.

  5. Click Save.

    This cancels the current refund.

  6. Click the value in the Payment field to open the related original payment.

  7. Click next to the Open Amount field, and specify the original value.

  8. Click Save.

    This makes the involved amount available on the original payment again.

Redoing Failed Refund

Users can repeat a failed refund attempt, forcing SEPA Credit Transfer as the payment instrument. To redo a refund in the status Failed:

  1. Cancel the failed refund.

    For details, see Canceling Refund.

    Make sure to select Retry with SEPA as the cancellation reason.

  2. Create a new refund for the original payment.

    For details, see Creating Refund.

  3. For the new refund, select a payment instrument that is eligible for the SCT creation, or specify Creditor IBAN, Creditor Name and, optionally, Creditor BIC for the target bank account.

    To edit the refund details, you can either

    • in the Refunds related list of the original payment, click next to the new refund and select Edit, or
    • open the detail page of the new refund and click next to the relevant field

  4. Approve the new refund.

    For details, see Approving Refund.

This makes the new refund, which replaces the failed refund, ready for payout using SEPA Credit Transfer as the payment instrument.

Managing Payment Provider-Initiated Refunds

Typically, users initialize refunds based on the original payment in JustOn Cash Management. Certain circumstances, however, may require refunds to be initialized via a payment service provider. In this case, any transactions will synchronize with JustOn Cash Management via webhook notifications. Subsequently, JustOn Cash Management will update both payment and refund records accordingly.

This section outlines the process of initiating refunds directly through payment service providers and tracking them with the aid of webhook notifications in JustOn Cash Management.

Initiating Refund

JustOn Cash Management supports refunds in response to payments made via Mollie and Adyen. Users initiate refunds from the dashboard of the payment service provider. Typically, this involves the following steps:

  1. Log in to your payment provider account and access the dashboard.
  2. Find the payment transaction for which you need a refund.
  3. Initiate the refund, specifying the refund amount, and confirm the operation.

For details on initializing a refund via the Mollie Dashboard, see How do I refund a payment?.

For details on initializing a refund via the Adyen dashboard, see Refund a payment.

Tracking Refund Status

The refund process is managed by the payment service provider (see Refund via Payment Provider). Any data modifications are synchronized with JustOn Cash Management via webhook notifications.

In case a refund has failed, proceed as described in Redoing Failed Refund.

Adjusting Original Statement

Changing the open amount of an entry requires adjusting the original statement (the source of the entry) to ensure the integrity of downstream processes. If you have integrated JustOn Cash Management with JustOn Billing & Invoice Management and, consequently, produce entries from invoices, you issue a partial credit for the original invoice.

  1. Open the related invoice.

    Use the Statement No or the Statement ID as set on the related entry to get to the correct invoice.

  2. Click Create Credit.

  3. Select the relevant invoice line item and specify the amount to be credited in accordance with the refunded amount.

  4. Click Save.

    For details, see Creating Credits.