Same-day refund: If you refund an order on the same day it was placed, the order will be cancelled out and you will not receive payment from Zip.
Refunded at a later date: If you refund an order after the day it was placed, the refund is reflected as arrears in your merchant account balance, as Zip would have already disbursed you the funds
To resolve this, the refunded amount (less the merchant service fees) will be withheld from your next disbursement. We’ll resume disbursements as soon as the amount has been covered. In other words, refunds are used to offset any future payments, so your future payment will be your account balance for the day, less the refund amount.
For example: if you issued a refund of $100, your account will be $100 in arrears (less the merchant service fees that get credited back to your account). If your next order is for $20, you will not receive the disbursement for that order. Instead, your account will now be $80 in arrears. If you then were to place another order of $200, the refunded amount will be covered and you will then receive a disbursement for $120 (less the merchant service fees) detailing all the orders that were credited to the refund.
If you have not made sufficient orders to cover the refunded amount after 30 days, we will reach out to you to initiate a direct deposit to balance the account.
Using the Merchant Portal to see your balance
Merchant expected a payment of $67.54 but received a payment of $18.45
Use the date range in the Balance page of your Merchant Portal to view past transactions
As you can see there was a refund processed prior on the 9th of March for $49.09
The remittance will be as follows:
- $67.54 - $49.09 (refund offset)
- Remittance = $18.45
Merchant expected a payment of $1763.95 but received a payment of $1688.55
As you can see there was a refund processed prior on the 15th of February for $204.19
The remittance payment will be as follows:
- -$204.19 + $128.79 = -$75.40 (remaining refund offset)
- A future purchase was made on the 21st of March:
- -$75.40 + 1763.95 = $1688.55
Please get in touch with our Merchant Experience team here if you have any queries.