When you GET a refund with a refund ID, or when you receive a webhook from Banked, the JSON payload will contain a state field which will tell you about the state of the refund.
The guide will walk you through:
- Refund States: What they mean and how they are used.
- Refund Processing Times: How long refunds typically take.
- Refund States Transitions: How refunds move between states.
- Common Failure Reasons: Why refunds may fail.
- WebHook Notifications: How to handle state changes via webhooks.
Note for Australian merchants: Refund processing times may vary depending on the customer's financial institution and the NPP (New Payments Platform) availability.
Refund States
| State | Description |
|---|---|
pending | The refund request received but not yet processed |
sent | The refund successfully processed and credited to the customer's account. |
failed | The refund has failed. |
*Via NPP-enabled accounts, refunds may appear instantly. Traditional bank transfers may take 1-3 business days.
State Transitions
Refunds follow this typical flow: pending → sent (successful) or failed (unsuccessful)
Common Failure Reasons
When a refund reaches failed state, common reasons include:
- Invalid account details
- Account closed or frozen
- Insufficient funds in merchant account
- Bank system maintenance or downtime
Webhook Notifications
You'll receive webhook events for each state change. Ensure your webhook endpoint can handle all three states appropriately.