Refund Strategies

PayFac facilities have the choice between 3 different refund strategies:

• Refund None
• Refund Percentage Only
• Refund Full

Explanation of how each of them works

If the initial purchase is $100 and the 3% fee + 50c is applied on it, the merchant is getting net settled $96.50, the payer is debited $100 and $3.50 in fees go to the PayFac.

If a refund of $100 is then requested by the Payer this is where the different strategies come in.

In all situations, the full $100 is sent back to the Payer.

• None - $100 is debited from the Merchant. So the merchant will be absorbing the $3.50 fee that was charged on the initial transaction.
• Percentage Only - $3 fee refunded to the merchant from the PayFac (percentage portion) - the PayFac will absorb the fixed fee portion (50c)
• Full - $3.50 fee refunded to the merchant, the PayFac will absorb the full $3.50 in fees.