Occasionally, you may run into problems when attempting to refund transactions in your CRM or order management system. There are several reasons why that may happen.
This article explains possible issues and contains troubleshooting suggestions.
There are several reasons why a refund attempt may be declined. Unfortunately, it is sometimes difficult to figure out what that reason is!
When your refund is declined, you’ll probably receive a notification of some kind in the platform you used to attempt the refund — whether that’s your order management system, CRM, or gateway.
Decline messaging varies by platform. One processor will use different codes than another processor. And each CRM, order management system, and gateway will display those codes in a unique way. Therefore, it’s impossible to provide you with a universal list of decline codes and their meanings. However, we can give you a list of some of the most commonly reported decline codes, their probable meaning, and troubleshooting suggestions.
|
DECLINE MESSAGE EXAMPLES |
PROBABLE EXPLANATION |
TROUBLESHOOTING SUGGESTIONS |
|---|---|---|
|
Could not issue refund. Processor returned: Authentication Failed Refund Failed by Payment Gateway (Authentication Failed) |
One of two things may have happened. Either your merchant account (MID) has been closed or your gateway password needs to be updated. |
If you are refunding from a CRM or order management system, check to make sure the registered gateway password is accurate and valid. Try refunding the transaction directly from your gateway instead of the CRM or order management system. If neither of the above suggestions resolve the issue, contact your processor to check the status of your account. |
|
Refund Failed by Payment Gateway (INVLD MERCH ID) |
One of two things may have happened. Either your merchant account (MID) has been closed or there is an issue with your account setup. |
If the MID you are using is new, check your gateway and TID setup. Confirm that all the information on your value-added reseller (VAR) sheet was entered into the gateway correctly. Then, contact your processor to review any potential issues. If your account is well-established, contact your processor to check its status. |
|
Refund Failed by Payment Gateway (Invalid processor REFID: . . . ) |
One of two things may have happened. Either your merchant account (MID) has been closed or your processor is experiencing technical difficulties. |
Contact your processor. Check if there are any known reasons for refund declines and the current status of your account. |
|
Could not issue refund. Processor returned: Bank decline. Could not issue refund. Processor returned: DECLINED Refund Failed by Payment Gateway (DECLINED) Could not issue refund. Processor returned: DO NOT RETRY - Bank decline |
The card issuer is unable to process the refund. One of two things may have happened. This response is most commonly used when the card you are trying to refund is no longer valid. This could happen if the card has expired, the card was lost or stolen, or the card was a prepaid account that is no longer in use. Another reason for this response could be that the issuer has already initiated a chargeback for the transaction, so a refund can’t be processed. |
Check to see if the transaction associated with the alert has received a chargeback. If the case hasn’t already advanced to a chargeback, contact the cardholder. Explain that you are unable to issue a refund, and ask if a replacement card has been issued. If you are unable to contact the cardholder, reach out to your processor and ask if there is an alternate way to process the refund to avoid a chargeback. |
|
Could not issue refund. Processor returned: INVALID CARD # |
The card issuer is unable to process the refund. The cardholder’s account has been renumbered, and the account number you are using to attempt the refund is no longer valid. |
Contact the cardholder, explain that you are unable to issue a refund, and ask if a replacement card has been issued. If you are unable to contact the cardholder, reach out to your processor and ask if there is an alternate way to process the refund to avoid a chargeback. |
|
Could not issue refund. Processor returned: Please contact customer support Refund Failed by Payment Gateway (CALL CENTER) Refund Failed by Payment Gateway (Please contact customer support PickUp Card |
The card issuer is unable to process the refund. This may be because the cardholder has reported the card lost or stolen or the account has been closed. |
Contact the cardholder, explain that you are unable to issue a refund, and ask if a replacement card has been issued. If you are unable to contact the cardholder, reach out to your processor and ask if there is an alternate way to process the refund to avoid a chargeback. |
|
Refund Failed by Payment Gateway (Unknown Response from Gateway) |
One of two things may have happened. Either your gateway has been closed or there is an issue with your gateway setup. |
Contact your gateway representative. Check if there are any known reasons for refund declines and the current status of your account. |
NOTE: If you are unable to refund the original transaction, do not send a check as reimbursement. The check probably won’t reach the account before the alert expires. Even if it does, the bank usually will not accept it as a valid resolution.
Also, most merchant accounts will not allow you to issue a refund to a different card or account.
It is important to note that the prevention alert is still considered valid, even if you are unable to issue a refund.
If none of the troubleshooting steps listed here resolve the issue, you’ll want to respond to the alert in Chargeback Portal with the following notation: Unable to Refund/Other