Occasionally, you might encounter problems when attempting to refund transactions in your CRM or order management system. This article explains the possible causes for these issues and provides troubleshooting suggestions.
There are several reasons why a refund attempt might be declined by a processor. Diagnosing the exact cause of a declined refund can be challenging.
When a refund is declined, you will typically receive a notification in the platform you used to attempt the refund (such as your order management system, CRM, or gateway). Decline messaging varies by platform; each processor uses different codes, and each CRM or gateway displays those codes uniquely.
While it is impossible to provide a universal list of decline codes, the table below outlines the most commonly reported error messages, their probable meanings, and recommended troubleshooting steps.
|
Error Message(s) |
Probable Cause |
Troubleshooting Steps |
|
Could not issue refund. Processor returned: Authentication Failed Refund Failed by Payment Gateway (Authentication Failed) |
This typically indicates that your merchant identification number (MID) has been closed or your gateway password needs to be updated. |
1. If refunding from a CRM/OMS, ensure the registered gateway password is accurate. 2. Try refunding the transaction directly from your gateway instead of the CRM/OMS. 3. If the issue persists, contact your processor to check your account status. |
|
Refund Failed by Payment Gateway (INVLD MERCH ID) |
This typically indicates that your MID has been closed or there is an issue with your account setup. |
1. If using a new MID, confirm that all information on your value-added reseller (VAR) sheet was entered into the gateway correctly. 2. Contact your processor to review potential setup issues or check the status of your established account. |
|
Refund Failed by Payment Gateway (Invalid processor REFID: . . . ) |
Your MID has been closed or your processor is experiencing technical difficulties. |
Contact your processor to check for known system outages or to verify your account status. |
|
Could not issue refund. Processor returned: Bank decline. Could not issue refund. Processor returned: DECLINED Refund Failed by Payment Gateway (DECLINED) Could not issue refund. Processor returned: DO NOT RETRY - Bank decline |
The card issuer is unable to process the refund. The card might be expired, lost, stolen, or closed. Alternatively, the issuer might have already initiated a chargeback for the transaction. |
1. Check if the transaction associated with the alert has already received a chargeback. 2. If no chargeback exists, contact the cardholder to ask if a replacement card was issued. 3. Reach out to your processor for alternate ways to process the refund and avoid a chargeback. |
|
Could not issue refund. Processor returned: INVALID CARD # |
The cardholder’s account has been renumbered, and the account number you are attempting to refund is no longer valid. |
1. Contact the cardholder to ask if a replacement card has been issued. 2. If you cannot reach the cardholder, contact your processor for an alternate refund method. |
|
Could not issue refund. Processor returned: Please contact customer support Refund Failed by Payment Gateway (CALL CENTER) Refund Failed by Payment Gateway (Please contact customer support) PickUp Card |
The card issuer is unable to process the refund because the cardholder reported the card lost or stolen, or the account has been closed. |
1. Contact the cardholder to ask if a replacement card has been issued. 2. If you cannot reach the cardholder, contact your processor for an alternate refund method. |
|
Refund Failed by Payment Gateway (Unknown Response from Gateway) |
Your gateway has been closed or there is an issue with your gateway configuration. |
Contact your gateway representative to check for known technical issues and verify your account status. |
Note
If you are unable to refund the original transaction, do not send a physical check as reimbursement. The check is unlikely to reach the account before the prevention alert expires. Even if it does, the issuing bank usually will not accept a check as a valid resolution. Furthermore, most merchant accounts will not allow you to issue a refund to a different card or account than the one originally charged.
It is important to note that a prevention alert is still considered valid even if you are unable to issue a refund.
If none of the troubleshooting steps listed above resolve your issue, you must still respond to the alert. Log in to the Chargeback Portal and respond to the alert using the Unable to Refund/Other notation.
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