Refund are reversal transactions wherein complete or partial money is moved back to customer’s source account (account from which actual payment was made). Refund can only be created for a successful or settled transaction. Use case for refund arise in following scenarios -

  • Customer initiated refund (returns/cancellation) - Customer has changed his mind about consumption of product pre/post order delivery
  • Merchant initiated refund - Refund can be initiated by merchant in following scenarios

    • Product/service is out of stock
    • Merchant works on prepaid model wherein initial amount was higher than final billed amount (prepaid service model)
    • Mismatch in transaction status between Paytm and merchant wherein transaction is failed state at merchant's end but is successful at Paytm's end.

You can initiate partial or complete refunds to your customer’s source account . A refund request usually takes 7-14 business days to reflect in customer’s account depending on the bank used for payment.

Ways to initiate refunds

Paytm provides two ways by which you can initiate refunds

Refund via dashboard

Single transaction refund - Each transaction needs to be individually selected to process refund. In order to do this, follow the steps below

  • Go to transaction tab in the dashboard

  • Click on transaction which needs to be refunded

  • On the transaction information panel, click on “refund” on top right corner

  • Enter the amount that needs to be refunded

Bulk refund - Multiple transactions can be refunded at once. To do this, follow the steps below

  • Go to refunds tab on merchant dashboard

  • Click on bulk refunds

  • Upload a file in a specified format in either Excel 2007 or 2011 format. Sample file is provided on the panel

Refund via APIs

You can also initiate a refund via the Refund API. Identifier of transaction against which refund has to be made is order ID (unique parameter for an order in your system) and transaction ID (unique parameter for your order with Paytm passed in transaction response)

Constraints on refunds

  • Once the refund is requested against a transaction, it cannot be cancelled by merchant
  • Refund request will always be credited to customer source account with which the transaction was done initially
  • Refunds can be requested for successful, settled or partially refunded orders.
  • Total refund initiated in a day has to be lower than total outstanding payable amount with Paytm. In case it is above, the refunds are not accepted
  • There are 6 partial refunds are allowed on a single transaction with done using Rupay card network
  • For wallet transaction where Paytm cashback (CB) has been processed successfully, customer will receive a refund after deduction of CB

Time taken to process refunds

Refund process involves multiple handshakes between acquirer banks, card schemes and issuer banks. Hence it usually takes up to 14 days for the refund amount to be credited in customer’s account. Typical window of refund credit per transaction mode is provided below:

Max time taken to settle into customers account

InstrumentPaytm WalletPaytm Payments BankCC/DCUPINetbanking
Private Banks1 day5 days10 days5 days7 days
Nationalized Banks--14 days-7 days

Bank holidays are excluded from the timelines provided

As a best practice we recommend to communicate an expected date by which customer will receive the money. This communication should go out once we have accepted the refund and confirmed the status as successful