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Refunds and Voids

Yuyo avatar
Written by Yuyo
Updated over 2 weeks ago

Definitions, Timelines, and How to Process Them

Tonder provides multiple ways to return funds to users depending on the transaction state and payment method. Understanding the difference between a Void, a Refund, and an Auto-Refund is critical for correct operations and user communication.

This article explains:

  • What each action means

  • Expected processing times

  • How to perform refunds directly in the Tonder platform


Void

What Is a Void?

A Void cancels a transaction before it is fully settled with the payment provider.

  • The transaction is stopped before funds are captured

  • No money is settled to the merchant

  • No processing fees apply

Key Characteristics

  • Fees: None

  • Best used when: The transaction was authorized but should not be completed

Processing Time

  • Instant to up to 3 business days, depending on the provider and bank

Once a transaction is voided, it cannot be refunded—because the funds were never captured.


Refund

What Is a Refund?

A Refund returns funds after the transaction has been successfully completed and settled.

  • Funds are sent back to the original payment method

  • Processing fees may still apply depending on the provider

  • Banks control the final posting time

Key Characteristics

  • Fees: Provider fees may apply

  • Best used when: The transaction was completed and must be reversed

Processing Time

  • 1 to 45 calendar days

    • Timing depends on:

      • Card network or payment method

      • Issuing bank

      • User’s account type

Refunds are final and cannot be canceled once processed.


Auto-Refund (SPEI Only)

What Is an Auto-Refund?

An Auto-Refund is an automatic return of funds triggered by the system for SPEI deposits only.

This typically happens when:

  • The deposit cannot be correctly assigned

  • Validation rules are not met

  • The transaction is rejected after receiving funds

Key Characteristics

  • Payment method: SPEI only

  • Fees: None

  • Manual action required: No

Processing Time

  • Instant

Auto-refunds eliminate manual intervention and prevent funds from remaining in an unassigned state.


How to Process a Refund in the Tonder Platform

Follow these steps to manually refund a transaction:

  1. Go to the Tonder Dashboard

  2. Navigate to Transactions

  3. Search for the deposit you want to refund

    • You can filter by:

      • Transaction ID

      • Amount

      • User email

  4. Click on the transaction to open Transaction Details

  5. Click Refund

  6. Confirm the action

Once confirmed:

  • The refund request is sent to the payment provider

  • The transaction status will update accordingly


Important Operational Notes

  • Voids are only available before settlement

  • Refund timelines are controlled by banks, not Tonder

  • SPEI auto-refunds are system-driven and immediate

  • Always communicate estimated timelines, not exact dates, to users


Summary Table

Action

When It Applies

Fees

Expected Time

Void

Before settlement

None

Instant – 3 days

Refund

After settlement

May apply

1 – 45 days

Auto-Refund (SPEI)

SPEI only

None

Instant


Final Note

Choosing the correct action—Void, Refund, or Auto-Refund—ensures accurate reconciliation, correct user communication, and efficient operations.

When in doubt:

  • Void before settlement

  • Refund after settlement

  • Rely on Auto-Refunds for SPEI edge cases

  • Our refund are instantly triggered, but the bank is the one that can take certain time to return funds.

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