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Refunds on Card Payments: Costs, Timing and Best Practice

Refunds are not free and they are not instant. Setting customer expectations correctly avoids most refund-related disputes.

9 June 2026 5 min read

What refunds cost you

Many providers charge a per-refund fee and do not return the original transaction fee. On low-margin goods a returned item can cost more than the profit on the sale, which is why an accurate product description is a cost-control measure.

Timing

A card refund typically reaches the customer's account in three to five working days, longer over weekends. Saying 'up to five working days' at the point of refund prevents the follow-up calls that consume staff time.

Refund to the original card only

Refunding to a different card or by cash is a well-known fraud vector and can breach your merchant agreement. Keep the rule absolute and document it in your policy.

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