A refund gives a shopper money back on an order: all of it, some items, just the delivery charge, or any amount you choose. Mercayo works out the amount from what was actually paid, sends the online part back through your own Razorpay account, records any part you pay in cash or by bank, issues the GST credit note and, if you choose, puts the items back into stock. Refunds are made from the Refunds card or the REFUND button on the Order Page. Anyone who can see orders sees the refunds made; making a refund needs the right to process orders (the owner, admins and Order Manager).
The Refunds Card
On every order, the Refunds card shows:
- a summary: "Paid ₹2,499.00 · refunded ₹500.00 · ₹1,999.00 left to refund", or "Nothing has been paid on this order yet.";
- each refund made, newest first: the amount, its state, where the money went ("₹799.00 to UPI (Razorpay)", "₹200.00 in cash or by bank", "₹500.00 to store credit"), the reason and note, its credit note ("Credit note CN/2627/00012"), "Items back in stock" when stock went back, and when it was made;
- REFUND at the top, when something is left to refund.
| State | Meaning |
|---|---|
| On its way | Razorpay has the refund and has not confirmed it yet |
| Refunded | Done: Razorpay confirmed it, or it was a cash, bank or store credit refund you recorded |
| Failed | Razorpay refused it. No money moved. The reason is shown in red |
TRY AGAIN appears on a failed online refund, and on one that has been On its way for more than two minutes without an answer.
What Can Be Refunded
What is left to refund is what was paid, less what has already been refunded or is on its way:
- money paid online through Razorpay (for a prepaid order, or the part paid online with part payment for COD),
- the cash collected on a COD order, once it is delivered,
- store credit or a gift card used to pay.
An order that is still awaiting payment, or a COD order not yet delivered with nothing paid online, has nothing to refund.
How to Refund
- Open the order and press REFUND (in the summary band, or on the Refunds card). The Refund Order #1042 dialog opens.
- Choose what to refund. With Items and charges:
- use the − and + beside each item to choose how many to refund ("2 of 3 left to refund");
- tick Delivery and fees to refund the delivery charge and fees too (shown with their amount);
- tick Put the items back into stock if the items came back and can be sold again.
Or choose A custom amount and type the Amount ("Up to ₹1,999.00"). A custom amount is not tied to items and nothing goes back into stock.
- Choose Refund to:
- The original payment: the online part goes back through Razorpay to the shopper's UPI, card, netbanking, wallet or EMI.
- Cash or bank transfer (you pay it, Mercayo records it): you pay the shopper yourself; fill in How the money was paid back, for example "UPI to the shopper's number".
- Store credit (no bank details needed): the money goes into the shopper's store credit balance with your store. Offered only while store credit and Refund to Store Credit are on.
- Type a Reason, up to 300 characters ("For example: the shopper returned it"). It is required.
- Watch the line at the bottom: it says exactly what will happen, for example "Refund ₹799.00 to UPI (Razorpay) · credit note CN/2627/00012 will be issued · the items go back into stock".
- Press REVIEW, check the Confirm The Refund step ("The money goes back to the shopper and this cannot be undone."), and press REFUND ₹799.00.
- Read the result and press DONE.
| Result | What It Means |
|---|---|
| "₹799.00 is refunded." | Done |
| "Razorpay has the refund of ₹799.00. It shows as refunded when Razorpay confirms it, usually within minutes." | On its way |
| "Razorpay did not make the refund: …. No money moved; you can try again." | Failed; fix the reason or try again later |
| "Razorpay did not answer. The refund stays on its way…" | Razorpay's notice settles it, or press TRY AGAIN in a few minutes |
Partial Refunds
You can refund as many times as you need, until nothing is left. Each refund is its own row with its own credit note.
- A phone-case brand in Jaipur refunds one case out of three: choose 1 on that line, The original payment, reason "One case cracked in transit". ₹499 goes back to the shopper's UPI.
- A Surat saree seller refunds only the delivery charge after a late delivery: tick Delivery and fees alone.
- A goodwill gesture of ₹200: A custom amount, ₹200, Store credit.
When the original payment cannot cover the whole amount (for example a part-paid COD order where most was paid in cash), the line reads "Refund ₹99.00 to UPI (Razorpay) and record ₹900.00 as refunded in cash or by bank", and you fill in how you paid the cash part.
Refunds Needed
When money was paid on an order and the order was then cancelled, when a refund failed, or when a refused COD parcel's advance is to be refunded (if Refund the Part Paid When a Parcel Is Refused is on in Settings › Checkout and COD), the Orders List shows a yellow banner: "3 orders need a refund", "Money was paid on these orders and they were then cancelled or refused, or a refund failed. Open each one to refund it.", with links to up to five orders and their amounts.
Refunds on Cancelled and Returned Orders
A cancelled order, or a COD order returned to origin, has already put its stock back and had its credit note issued. Its refund dialog therefore offers only an amount: "This order was cancelled or came back: its items and credit note are already settled. Refund the amount paid."
Credit Notes and Stock
- When an order has a GST invoice, each refund that is accepted (Razorpay confirmed it, or you recorded it) gets a credit note for what it takes back that has not been credited before. For items and charges the note lists them; for a custom amount the amount is spread over what is left on the invoice. The dialog's preview names the credit note only for items and charges.
- Stock goes back with a refund only for a delivered order whose stock was not already put back, and only when you tick Put the items back into stock and choose the items. Otherwise: "Stock goes back with a refund only after delivery. A cancelled or returned order already put it back."
- When the last refund takes back everything left on an order that was rounded off to the rupee, it includes the order's round off; the preview says so.
Common Messages
| Message | What To Do |
|---|---|
| "Nothing was paid online that can take this back. Record it as refunded in cash or by bank." | Choose Cash or bank transfer |
| "Razorpay is not connected for this store…" | Connect Razorpay in Payments, or refund in cash or by bank |
| "An online refund is at least ₹1.00…" | Record a smaller amount as cash or bank |
| "At most ₹1,999.00 can be refunded on this order." | Lower the amount |
| "More than is left to refund on line 2." | That item was already refunded |
| "Refund chosen items and charges, or a custom amount, not both." | Pick one way |
| "This refund is on its way. Razorpay will confirm it shortly." | Wait; it is already being made |
| "The order has changed since this refund failed. Make a new refund instead." | Start a fresh refund |
What Shoppers See
An online refund goes back to the way they paid; how long their bank takes is up to the bank. Store credit appears in their account's credit balance. Their order page shows the order as Refunded or Partly refunded, and their credit notes to download.
Good to Know
- Every refund is recorded once, even if the button is pressed twice or the network repeats the request.
- The amount is always worked out by Mercayo from the order's lines and charges, capped at what was paid; the dialog cannot refund more.
- Online refunds are made through your own Razorpay account, the same one the shopper paid into.
- Refunds made directly in the Razorpay dashboard are not matched to the order and raise no credit note; refund from Mercayo instead.
- Each refund is recorded in Settings › Activity Log.
Questions
Can I undo a refund?
No. Once confirmed, the money goes back to the shopper. Check the preview line before pressing the final button.
How do I refund a COD order?
After delivery, the cash collected can be refunded: choose Cash or bank transfer (and say how you paid) or Store credit. Before delivery there is nothing to refund.
Why is Store credit not offered?
Store credit or Refund to Store Credit is off in Settings › Rewards and Credit.
A refund shows Failed. Did the shopper get money?
No. A failed refund moved no money. Read the reason, then press TRY AGAIN or make a new refund.
Does refunding cancel the order?
No. A refund only gives money back. To stop an order that has not shipped, cancel it; see Cancel an Order.