When managing payment reversals and refunds in Digitail, it's essential to understand the integration with Stripe and the correct procedures to ensure smooth and accurate processing. Below, we outline the workflows and best practices for handling these transactions.
Overview of Payment Reversals in Digitail
If you process a payment reversal in Digitail, the system automatically processes the transaction with Stripe. However, this automation only occurs if the payment mode is set to External Provider, which is the default setting. Ensuring this mode is active guarantees that funds are returned to the client’s card. If the payment mode is switched to Manual, the reversal will no longer process through Stripe, and the client will not receive the money back on their card.
Refund Processing Procedures
Using Digitail for Refunds
Refunds for transactions handled through Digitail must be initiated directly via the Digitail interface or with assistance from the support team. You cannot process these refunds directly from the Stripe Dashboard. Using the proper refund flow in Digitail ensures the client's funds are returned correctly. Steps for Processing Refunds:
Navigate to the refund section in the Digitail platform.
Follow the guided steps to initiate the refund.
Confirm the refund and provide proof of refund to the client as needed.
Informing the Client
Once a refund is initiated, clients should be informed that:
Refunds may take 5-10 business days to appear in their account.
If a delay occurs, an Acquirer Reference Number can be generated within 1-3 days upon request and may be required by the client's bank for tracking purposes.
Key Guidelines and Best Practices:
Always use the
External Providerpayment mode to facilitate automated payment reversals.Avoid initiating refunds directly in Stripe for Digitail transactions to prevent mismatches.
Communicate refund timelines and provide documentation like proof of refund links or Acquirer Reference Numbers when necessary.
By following these procedures and guidelines, you can ensure accurate and timely processing of payment reversals and refunds while maintaining customer trust.