Overview

This article guides you through issuing a refund transaction on the Authorize.net platform. It covers the eligibility criteria that must be met before a refund can be submitted, step-by-step procedures for issuing refunds through the Merchant Interface (MINT) using Manage Transactions or the Customer Information Manager (CIM), guidance on application programming interface (API)-based refunds, common error messages and how to resolve them, and answers to frequently asked questions.

Understanding when and how to issue a refund is essential for maintaining accurate transaction records and ensuring a positive customer experience. Refunds on Authorize.net are linked to the original settled transaction and must meet specific eligibility requirements before they can be processed. This article provides all the information you need to successfully submit a refund using the method that best fits your workflow.

This article applies to: Merchants processing refunds through the Authorize.net Merchant Interface (MINT) or via the Authorize.net application programming interface (API).

This article does not apply to: Voiding or cancelling unsettled transactions.

Understanding Refund Eligibility Criteria

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

• The refund must reference the original Transaction ID of the transaction being refunded.
• Only transactions that have been settled within the past 180 days are eligible for a refund. After 180 days, card data associated with the transaction is archived for security purposes. Transactions settled more than 180 days ago require an alternative refund method or, if approved for your account, the use of Expanded Credit Capabilities (ECC).
• The total amount of all refunds issued against a credit card or Automated Clearing House (ACH)/eCheck transaction cannot exceed the amount of the original transaction.
• Refunds must be issued to the same credit card number or ACH account used for the original transaction.
• For eCheck refunds, funds must be available on your eCheck settlement statement.
• Transactions that failed, were declined, resulted in an error, or remain unsettled cannot be refunded.
• Transactions submitted as Authorization-Only cannot be refunded.
• Transactions in the Unsettled Transactions queue cannot be refunded. These transactions must be voided or cancelled. Only settled transactions may be refunded.
• Refunds can only be issued against an existing credit card transaction that has been successfully settled on the Authorize.net system.

Understanding Refund Timeframes

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

Refund Processing Timeframes by Payment Type

Issuing a Refund Transaction

There are three methods available for issuing a refund. Select the method that applies to your workflow.

Method 1: Issue a Refund Using Manage Transactions

1. Sign in to the Merchant Interface.
2. Confirm you are on or have switched into the New Merchant Interface (2.0).
3. Click Payments in the left navigation.
4. Click Manage Transactions.
5. Set the date range and search criteria to locate the customer's transaction.
6. Click the Transaction ID for the transaction you want to refund.
7. Click the Refund button on the Transaction Detail screen. A pop-up window appears.
8. Adjust the Amount field if you want to issue a partial refund.
9. Optionally, add or update the Invoice # field and enter a description in the Description field.
10. Confirm the Customer Email field is present and check the box labeled Email transaction receipt to customer (if email provided) if you want the customer to receive an email receipt.
11. Click OK to submit the refund request.

Method 2: Issue a Refund Using Customer Information Manager

1. Sign in to the Merchant Interface.
2. Confirm you are on or have switched into the New Merchant Interface (2.0).
3. Click Customer Information Manager (CIM) from the left side menu.
4. Search for and locate the customer you want to refund.
5. Click the Profile ID for that customer.
6. Click Transaction History on the Customer Profile page.
7. Click the Transaction ID for the charge transaction you want to refund.
8. Review the transaction detail page that appears.
9. Click the Refund button on the Transaction Detail screen. A pop-up window appears.
10. Adjust the Amount field if you want to issue a partial refund.
11. Optionally, add or update the Invoice # field and enter a description in the Description field.
12. Confirm the Customer Email field is present and check the box labeled Email transaction receipt to customer (if email provided) if you want the customer to receive an email receipt.
13. Click OK to submit the refund request.

Method 3: Issue a Refund via Website, Shopping Cart, or Software Integration

Refunds submitted through a website, shopping cart, or software solution depend on your integration with the Authorize.net API and your ability to submit the appropriate API call for refund transactions.

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

Troubleshooting Common Refund Errors

Processing Error

Error message: "An error occurred while processing. Please try again later."

Cause: This error typically occurs when the description field contains special characters such as @ ! % ' -.

Resolution: Remove any special characters from the description field before clicking Submit.

Exceeds Original Payment Amount Error

Cause: 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 all prior refunds issued against the transaction and confirm the remaining refundable balance before submitting a new refund.

Expired Credit Card Error

Cause: The expiration date for the credit card originally charged has since expired.

Resolution: Use an alternative method to issue the refund, such as cash, check, or store credit.

Frequently Asked Questions

• • Can you refund a transaction on the same day it was submitted?
  • This depends on whether the transaction has been batched and settled. If the transaction has not yet been settled, it must be voided or cancelled rather than refunded. If the transaction has already been settled, a refund transaction must be submitted.
• • How long does a refund transaction take to appear?
  • Credit card refunds typically take 3–5 business days to appear on the customer's statement. eCheck/ACH refunds typically take up to 7–10 business days. Exact timeframes may vary depending on the customer's bank.
• • Why was my refund transaction declined?
  • Visa, Mastercard, and Discover now require Purchase Returns Authorization (PRA), which validates payment data in real time. A refund may be declined for the following reasons:
    • The cardholder account is no longer active or valid.
    • Insufficient funds exist in the cardholder's account.
    • Card information is incorrect or outdated.
    • The payment processor is experiencing issues.
    • Fraud prevention measures blocked the transaction.
• • Can I refund a transaction that is more than 180 days old?
  • Transactions settled more than 180 days ago cannot be refunded through the standard linked refund process because the associated card data has been archived for security purposes. An alternative refund method must be used, or if your account has been approved for Expanded Credit Capabilities (ECC), that option may be available.
• • Can I issue a partial refund?
  • Yes. When submitting a refund through Manage Transactions or Customer Information Manager (CIM), you can adjust the Amount field in the refund pop-up window to reflect a partial refund amount. The total of all refunds issued against the transaction cannot exceed the original transaction amount.
• • Can I refund a transaction to a different card or account?
  • No. Refunds must be issued to the same credit card number or ACH account used for the original transaction.
• • What should I do if the customer's card has expired since the original transaction?
  • If the original card has expired, the refund cannot be processed back to that card. Use an alternative refund method such as cash, check, or store credit.

Additional Resources

• How do I void transactions? – New Experience (2.0)
• How do you view unsettled transactions and capture or void transactions? - New Experience (2.0)
• Developer Center – Payment Transactions (API Refund Methods)

Glossary

• ACH (Automated Clearing House): A US electronic network used for financial transactions, including direct deposits and eCheck payments.
• API (Application Programming Interface): A set of protocols and tools that allow software applications to communicate with each other. Used here to submit refund transactions programmatically through Authorize.net.
• CIM (Customer Information Manager): An Authorize.net feature that stores customer payment and shipping information for repeat use and transaction history review.
• ECC (Expanded Credit Capabilities): An optional account feature that allows merchants to issue refunds on transactions settled more than 180 days ago, subject to account approval.
• eCheck: An electronic version of a paper check used to transfer funds directly from a customer's bank account via the ACH network.
• MINT (Merchant Interface): The Authorize.net online portal used by merchants to manage transactions, customers, and account settings.
• PRA (Purchase Returns Authorization): A requirement by Visa, Mastercard, and Discover that validates refund payment data in real time before processing.
• Transaction ID: A unique identifier assigned to each transaction processed through Authorize.net, used to locate and reference specific transactions.