FAQs / Collecting Money / Understanding Fees for Refunded Payments

Understanding Fees for Refunded Payments

There are no fees to refund a payment, but the service fee on the original payment is nonrefundable. When issuing a refund of a partial or full payment, the Seller will cover the service fee, regardless of whether you have assigned the fee to the Buyer or Seller.

For example, if the Buyer pays $10 plus the $1 fee ($11 total), the Buyer will receive a partial refund of $10 since that is the balance the Seller received. The Seller has the option to issue a full refund of $11, but the $1 fee will be debited from their balance or connected bank account.

Alternatively, if the service fee is assigned to the Seller, then the Seller would receive $9 from a Buyer's $10 purchase. If refunding the full purchase of $10, the $1 fee would be debited from the Seller's balance or connected bank account.

A large portion of the underlying cost of payment processing is driven by fees assessed by banks and payment networks (like Visa and Mastercard). These networks set rules about which fees apply for refunded payments, and in many cases banks and card networks keep the entire upfront cost of a refunded transaction. For some regions and payment types, refunded payments also incur additional fees.