Glossary
Refund
A refund is the merchant's decision to return all or part of a payment to the payer through the same method the payer used: back to the card, the bank account, the wallet or the crypto address. It is initiated by the merchant, unlike a chargeback, which the cardholder forces through the issuer, and it happens after settlement, unlike a reversal or void, which cancels an authorisation before the money moved.
Refund, reversal, chargeback
A reversal cancels an authorised but not yet captured payment and costs nothing. A refund returns captured money: the acquirer’s fee is usually not returned, and a refund fee may apply. A chargeback is the involuntary version with a dispute fee and a mark on the merchant’s ratio; a fast refund before the dispute is filed is the cheapest outcome of an unhappy payer.
Refunds by method
Cards: days to reach the cardholder’s statement, through the acquirer. Instant bank rails such as PIX, UPI or Faster Payments: a transfer back within minutes. Open Banking: a payout to the payer’s account where the provider offers it. Cash vouchers: no original channel, so a bank transfer or a wallet is used. Crypto: a transfer to the payer’s address at the current rate.
On the platform
Tranzify’s API and back office refund a payment in full or in part by its reference; the refund goes through the provider that took the payment, is journaled with the provider’s answer, debits the merchant’s balance in the ledger and notifies the merchant by webhook.
Updated: 2026-11-08