Understanding Refunds, Disputes, and Reversals

When you pay for something online, it is reassuring to know there are ways to fix things if something goes wrong. Three terms you might hear are refund, dispute, and reversal. While they all relate to returning money, they work in different ways.

What is a Refund?

A refund happens when a merchant returns money to a customer after a purchase. This could be due to an error, a cancelled order, or a customer not being satisfied. With HydrogenPay, merchants can easily issue refunds for transactions that have a status of 'Success'. Transactions marked as “Pending” or “Failed” are not eligible for refunds.

One thing to note, refunds always go back to the original payment source. So, if you paid by card, the refund would return to that card. There is also a helpful feature, if a merchant starts a refund and realizes it was a mistake, the refund can be cancelled within 30 seconds.

How is a Dispute Different?

A dispute starts when a customer contacts their bank to challenge a charge. The bank investigates, and if the claim is valid, the money is taken back from the merchant. Disputes often take longer to resolve and may involve more paperwork.

What is a Reversal?

A reversal is when a payment is stopped before it is completed. This might happen if there is a technical problem or if the transaction is cancelled quickly. In a reversal, the money never actually leaves the customer’s account.

When Would You Use a Refund?

Imagine you order a pair of shoes online, but the wrong size arrives. You contact the merchant, who checks the transaction. Since the payment status is “Success,” the merchant can issue a refund straight away. The money goes back to your original payment method, and if the merchant acts fast, they can even cancel the refund within 30 seconds if something changes.

How to Request a Refund Using HydrogenPay

1. Log in to the Merchant Portal.
2. Click on “Transactions” in the sidebar.
3. Select “HydrogenPay Gateway” to view eligible transactions.
4. Find the transaction with a “Success” status.
5. Click “Initiate Refund.” The refund will be sent to the original payment source.
6. If you need to, you can cancel the refund within 30 seconds of starting it.

Key Points

• Refunds are only for transactions with a "Success" status.
• Money always returns to the original payment method.
• You can cancel a refund within 30 seconds if needed.
• Disputes and reversals are handled differently and usually take more time.

Understanding these differences helps both merchants and customers handle payment issues more smoothly.

Need Help?

If you encounter any difficulties or have questions, please do not hesitate to reach out to our customer support team through any of the means below:

• Chat with Support: Use the chat widget at the bottom right corner of any of the portal's page to chat with our support team.
• Log a Request: Click this link to submit a request through the webform on this site.
• Email Support: Reach out to our support team via email at support@hydrogenpay.com.