Overview

This article guides merchants through the process of issuing refund transactions using the Authorize.net platform. It covers eligibility criteria that must be met before a refund can be submitted, step-by-step instructions for issuing refunds through multiple methods — including the Virtual Terminal (VT), the Quick Refund feature, Customer Information Manager (CIM), and Application Programming Interface (API) integrations — as well as guidance for handling expired credit cards and troubleshooting common refund errors.

This article applies to merchants processing credit card and Automated Clearing House (ACH)/eCheck transactions through Authorize.net. It does not apply to voiding unsettled transactions, which require a separate process. Merchants should review all eligibility criteria before attempting to submit a refund to avoid processing errors or declined submissions.

Refund Eligibility Criteria

Before submitting a refund, confirm that all of the following criteria are met:

• Only transactions that have been settled within the past 180 days can be refunded. After 180 days, payment data is archived for security purposes, and the system no longer has access to the information required to process a linked refund to the original payment method. Transactions settled past 180 days require an alternative refund method or approval for your account using Expanded Credit Capabilities (ECC).
• The total of all refunds issued against a credit card or ACH/eCheck account cannot exceed the amount of the original transaction.
• Refunds must be issued to the same credit card number or ACH account used in the original transaction.
• Transactions that failed, were declined, resulted in an error, or are unsettled cannot be refunded.
• Transactions in Unsettled Transactions must be voided or cancelled — not refunded. Only settled transactions may be refunded.
• For eCheck refunds, funds must be available on your eCheck settlement statement.
• Refunds can only be issued against a credit card transaction that has been successfully settled on the Authorize.net system.
• Transactions submitted as Authorization-Only transactions cannot be refunded as they have not settled but can be Captured for settlement or Voided to cancel the transaction.

Refund Processing Timeframes

Refunds are processed at settlement time along with all other merchant transactions. The time it takes for a refund to appear on a customer's statement or account varies depending on the payment type and the customer's bank.

• Credit Card Refunds: Typically take 3–5 business days.
• eCheck/ACH Refunds: Typically take up to 7–10 business days.

Refund Transaction Options

Option 1: Issue a Refund Using the Quick Refund Feature

1. Sign in to the Merchant Interface.
2. Click Transaction Search from the main toolbar.
3. Click Search for a Transaction in the main left side menu.
4. Select the desired date range from the drop-down menu, or search by credit card payment method, credit card number, customer first name, last name, or Transaction ID.
5. Click Search.
6. Click the Transaction ID for the transaction you wish to refund.
7. On the Transaction Detail screen, click the Refund button. A pop-up window appears.
8. If issuing a partial refund, adjust the Amount field accordingly.
9. Optionally, add or update the Invoice # field and enter a value in the Description field.
10. To send the customer an email receipt for the refund, confirm the Customer Email field is populated and check the box labeled Email transaction receipt to customer (if email provided).
11. Click OK to submit the refund request.

Option 2: Issue a Refund Using the Virtual Terminal

1. Sign in to the Merchant Interface.
2. Click Virtual Terminal from the left side menu.
3. Under Select Payment Method, choose Refund a Credit Card or Refund a Bank Account.
4. Provide customer information as requested. The minimum information required includes:
   • The original Transaction ID
   • The last four digits of the account that was charged
   • The amount of the refund
5. Enter the original Transaction ID in the Original Transaction ID field. The Transaction ID can be found in the original transaction details. Note that only the last four digits of the credit card number or bank account are viewable in transaction details.
6. Click Submit.

Option 3: Issue a Refund Using Customer Information Manager

Customer Information Manager (CIM) allows merchants to issue refunds directly from a stored customer profile.

1. Sign in to the Merchant Interface.
2. Click Customer Information Manager from the left side menu.
3. Search for and locate the customer profile you want to refund.
4. Click the Profile ID.
5. On the Customer Profile page, click Refund under the Payment Profile to refund.
6. Enter the original Transaction ID, the refund amount, and any additional required fields.
7. Click Submit.

Option 4: Issue a Refund via Website or Shopping Cart Integration

If your store uses a website or shopping cart integrated with Authorize.net via Application Programming Interface (API), the ability to submit refund transactions will depend on your integration's configuration and support for the refund API call.

For more information on API support for refund transaction methods, visit the Developer Center – Payment Transactions.

Processing Refunds for Expired Credit Cards

If a customer's credit card has expired, you can still issue a refund by providing the updated expiration date during the refund submission. The following methods support refunds for expired credit cards.

Issuing a Refund for an Expired Card Using the Virtual Terminal

1. Sign in to the Merchant Interface.
2. Click Virtual Terminal from the left side menu.
3. Under Select Payment Method, choose Refund a Credit Card or Refund a Bank Account.
4. Provide customer information as requested, including the updated expiration date. The minimum information required includes:
   • The original Transaction ID
   • The last four digits of the account that was charged
   • The amount of the refund
5. Enter the original Transaction ID in the Original Transaction ID field. The Transaction ID can be found in the original transaction details. Note that only the last four digits of the credit card number or bank account are viewable in transaction details.
6. Click Submit.

Issuing a Refund for an Expired Card Using Customer Information Manager

1. Sign in to the Merchant Interface.
2. Click Customer Information Manager from the left side menu.
3. Search for and locate the customer profile you want to refund.
4. Click the Profile ID.
5. Click the Edit link in the Payment Profile Information section and update the Expiration Date. Click OK.
6. On the Customer Profile page, click Refund under the Payment Profile to refund.
7. Enter the original Transaction ID, the refund amount, and any additional required fields.
8. Click Submit.

Troubleshooting Refund Errors

Processing Error: Special Characters in Description Field

If you receive the error message "An error occurred while processing. Please try again later," this is likely caused by special characters (for example: @ ! % ' -) entered in the Description field.

Resolution:

1. Click Refund to return to the refund form.
2. Remove all special characters from the Description field.
3. Click Submit.

Exceeds Original Payment Amount Error

This error occurs when a full or partial refund was previously submitted for the transaction, and the new refund submission would cause the total refunded amount to exceed the original transaction amount.

Resolution: Review the total amount already refunded for the transaction. Adjust the refund amount so that the cumulative total does not exceed the original transaction amount before resubmitting.

Declined Refund: Purchase Returns Authorization

Visa, Mastercard, and Discover now require real-time authorization for refund transactions through Purchase Returns Authorization (PRA). This process validates payment data in real time and provides immediate feedback on the success or failure of the refund attempt.

A refund may be declined for the following reasons:

• The cardholder account is no longer active or valid.
• There are insufficient funds in the cardholder's account.
• The card information provided is incorrect or outdated.
• The payment processor is experiencing issues.
• Fraud prevention measures have flagged the transaction.

Frequently Asked Questions

• Can I refund a transaction on the same day it was submitted?
  • It depends on whether the transaction has been settled. If the transaction has not yet been batched and settled, it can be voided or cancelled but not refunded. If the transaction has been settled, a refund transaction can be submitted. For more information on voiding transactions, refer to the resources listed below.
• How long does a refund take to appear on my customer's account?
  • Refund timeframes vary by payment type. Credit card refunds typically take 3–5 business days. eCheck/ACH refunds typically take up to 7–10 business days. The exact timeframe may also depend on the customer's bank.
• Why was my refund declined?
  • Refunds may be declined for several reasons, including an inactive or invalid cardholder account, insufficient funds, incorrect or outdated card information, payment processor issues, or fraud prevention flags. Visa, Mastercard, and Discover also require real-time authorization for refunds through Purchase Returns Authorization (PRA), which may result in an immediate decline if validation fails.
• Can I refund a transaction that is more than 180 days old?
  • Standard refunds are not available for transactions settled more than 180 days ago, as card data is archived after that period for security reasons. Merchants may need to use an alternative refund method or apply for Expanded Credit Capabilities (ECC) if approved for their account.
• Can I issue a partial refund?
  • Yes. Partial refunds can be issued by adjusting the Amount field during the refund process. However, the total of all refunds issued against a single transaction cannot exceed the original transaction amount.
• What if the customer's credit card has expired?
  • You can still issue a refund for an expired credit card by providing the updated expiration date when submitting the refund through the Virtual Terminal or by updating the expiration date in the customer's profile within Customer Information Manager (CIM) before submitting the refund.
• Can I refund an Authorization-Only transaction?
  • No. Transactions submitted as Authorization-Only cannot be refunded. Only fully settled transactions are eligible for refunds.
• Can I refund an eCheck transaction?
  • Yes, eCheck/ACH refunds are supported. However, funds must be available on your eCheck settlement statement, and the refund must be issued to the same ACH account used in the original transaction. The total refunded amount cannot exceed the original transaction amount.

Additional Resources

• Developer Center – Payment Transactions
• How do I void transactions? - Classic Experience (1.0)
• How do you view unsettled transactions and capture or void transactions? - Classic Experience (1.0)

Glossary

• ACH (Automated Clearing House): A network used for electronically moving money between bank accounts across the United States.
• API (Application Programming Interface): A set of protocols and tools that allows software applications to communicate with each other. Used here to integrate a website or shopping cart with Authorize.net for processing transactions.
• CIM (Customer Information Manager): An Authorize.net feature that allows merchants to store and manage customer payment profiles securely for recurring or future transactions.
• ECC (Expanded Credit Capabilities): An account-level feature that allows merchants to issue refunds on transactions settled beyond the standard 180-day window, subject to approval.
• eCheck: An electronic version of a paper check used to transfer funds directly from a customer's bank account via the ACH network.
• PRA (Purchase Returns Authorization): A real-time authorization requirement mandated by Visa, Mastercard, and Discover that validates refund transactions at the time of submission, providing immediate feedback on approval or decline.
• Transaction ID: A unique identifier assigned by Authorize.net to each transaction. Required when submitting a linked refund to reference the original settled transaction.
• VT (Virtual Terminal): A web-based interface within the Authorize.net Merchant Interface that allows merchants to manually enter and process payment transactions, including refunds, without a physical point-of-sale terminal.