Refunds

A refund transfers funds from your merchant account to the customer’s account. Refunds are always associated with a transaction that has settled, meaning the funds have already transferred from the customer to the merchant. You can only refund a transaction with a Settling or Settled status – if the transaction has an Authorized or Submitted for Settlement status, you will need to issue a void instead.

You can choose to issue a refund either within the Control Panel or via the API. Credit card transactions can be refunded at any time, as long as the associated card is still active; PayPal transactions can only be refunded within 180 days of receiving payment.

A refunded transaction goes through the typical settlement process; as soon as the refund settles, the funds are sent back to the customer’s bank account. The customer's bank may take a couple of days to deposit these funds, so it is normal for your customer to experience a small delay.

important

If a customer makes a purchase in a currency other than their home currency and later requests a refund of that transaction, their refund amount may not exactly match their original transaction amount due to variable exchange rates. See Single-currency setup for more information.

Issuing a refund within the Control Panel

  1. Log into the Control Panel
  2. Search for the original transaction and click on the Transaction ID
  3. On the Transaction Details page, click Refund
  4. Adjust the amount you wish to refund your customer (if needed) and click Refund
note

If you don't see the Refund button, it may be because you have already issued a refund or your user does not have the appropriate permissions. If the transaction was created through a merchant account that is now suspended, you’ll need to issue a detached credit through an active merchant account.

Finding a missing refund

Occasionally a customer’s bank may have trouble routing a refund to their account, particularly if their card has been lost, stolen, or closed. When this happens, depending on the bank, they might attempt to re-route the funds to the appropriate account, mail the customer a check, or return the funds to your merchant account.

If one of your customers is not seeing a refund that shows that it was successfully issued through Braintree, we recommend that the customer contact their bank directly to locate it. If they are unable to do so and Braintree is your merchant account provider, contact our Support team and we can help track down the refund information. If you are only using the Braintree gateway, you will need to contact your merchant account provider directly.

Voids

A void will cancel the transfer of funds from the customer to the merchant and can be issued if the transaction is either Authorized or Submitted for Settlement. When a transaction is voided, the original authorization should disappear from the customer’s statement within 24 to 48 hours. You can choose to void a transaction either within the Control Panel or via the API.

note

Some banks don't recognize void requests immediately. It's possible that after you issue the void, your customer will still see the pending charge. If this happens, have your customer call their bank; the bank should be able to see the void request and update your customer's bank statement accordingly.

Issuing a void within the Control Panel

  1. Log into the Control Panel
  2. Under Advanced Search, click Transactions
  3. Locate the transaction and click on the Transaction ID
  4. On the Transaction Details page, click Void
  5. You will see a prompt confirming the void; click Continue

Detached credits

Detached credits, also known as blind credits, are disabled by default because it is against card association (e.g. Visa, Mastercard) rules for a merchant to transfer funds to a credit card without a pre-existing sale transaction. However, there are instances in which you might have a legitimate sale transaction but are not able to issue a refund:

  • You are a new Braintree merchant and need to refund a transaction that was issued through your previous processor
  • You are an existing Braintree merchant and need to refund a transaction that was issued through a closed Braintree merchant account
  • ​Your customer has closed the account associated with their original payment method

To request that we temporarily enable detached credits, have the authorized signer on your Braintree gateway account Contact our Support team.

note

Depending on your Braintree account setup, you may not be able to issue detached credits at all.

Keep these rules in mind when considering detached credits:

  • Detached credits cannot exceed the amount of the original sale transaction
  • Credits cannot be enabled in your Braintree account permanently, because they increase the potential impact of a security breach

Issuing a detached credit on a new card

  1. Log into the Control Panel
  2. Under Transactions, click New Transaction
  3. In the Transaction Type drop-down menu, choose Credit
  4. Enter all required values
  5. Click Create

Issuing a detached credit on an existing card/Vault record

  1. Log into the Control Panel
  2. Under Advanced Search, click Vault
  3. Locate your customer in the Vault
  4. Click Charge next to the customer
  5. In the Transaction Type drop-down menu, choose Credit
  6. Enter the amount of the credit
  7. Click Create
note

If you don't see the Credit option, but we’ve enabled detached credits on your account, it's possible that your user doesn’t have the appropriate permissions.

Still Have Questions?

If you can’t find an answer, give us a call at 877.434.2894 or contact our Support team


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