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Why a Refund Declines and What to Do About It
Why a Refund Declines and What to Do About It

Here are the most common reasons why a refund would be declined

Serena Edwards avatar
Written by Serena Edwards
Updated over a week ago

If you attempt to do a Refund and get a decline error, it means the card issuer is indicating that the cardholder's account cannot accept a Refund. When a Refund decline occurs, the cardholder's payment method cannot be refunded.

The following are common reasons for declines:

  • The card account has been closed

  • Due to fraud, the card account has been frozen

  • Refunds cannot be made on certain card accounts (e.g. some prepaid cards)

  • The payment was charged back

What to do about it?

Here are some ways to handle this type of error:

  • Refund the customer via a paper check

  • Refund the customer on another payment made with a different payment method

You will also want to be sure to get a new payment method from the customer for any future payments (if applicable).

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