Refund Processing

byPaytm Editorial TeamLast Updated: September 16, 2025

Definition

Refund processing refers to the mechanism by which money is returned to a payer after a failed, canceled, or disputed transaction.

Examples

  • Cancelled online orders.
  • Failed utility bill payment.
  • Incorrect transaction amount debited.

Importance

  • Ensures customer trust and satisfaction.
  • Maintains transparency in digital payments.
  • Reduces disputes between merchants and customers.

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