Is typically a process where a Customer is returned the money which were paid for goods or services. Mostly it involves returning the goods back to the Merchant, it can happen because of unsatisfactory quality, misrepresentation or any other instance which did not allow Customer to benefit from the Transaction.
Refund works in a similar manner as the Transaction Settlement when Customer purchases goods or services from a Merchant. Only in this instance, a reverse Transaction happens. During the Refund funds which are held on the Merchant’s Account are sent back to the Customer’s Account. This process has the same cost as the Transactions where Customer purchases goods and involves same Interchange Fees as during the initial Transaction which was reversed.