Cashfree Payments now enables you to process refunds to your customers. Learn how to configure refunds, various refund types, and refund preferences.


Refunds are reversals to customers. Online payments often involve the mechanism of refunds. There are various scenarios due to which a refund is raised:

  • Instances when an online transaction fails yet the money is debited from your customer's bank account.
  • Your customer purchased something online, made the payment, and cancelled the order due to reasons such as a defective product.

You can reverse the partial or the entire payment back to the customer's source account. Refunds are processed based on the payment method used by the customer. You can only initiate refunds against orders where payments are successful.

If the beneficiary account is inactive or frozen, refunds cannot be processed. You may have to contact the customer for alternate bank account details. You need to have a sufficient balance in your recharge account to initiate a refund. If you do not have sufficient balance, click RECHARGE to view the account details to which you need to transfer funds.

You can initiate refunds from the dashboard or use our APIs.

To initiate a refund from the dashboard,

  1. Go to Payment Gateway Dashboard> Transactions> Payments.
  2. Search for the transaction you want to initiate a refund for, and click Initiate Refund.

Initiate Refund

Refund Types

Cashfree Payments supports three types of refunds:

Standard Refund

A standard refund or a normal refund is a refund type in which the refunds are processed to your customer's bank account within 5-7 working days.

Instant Refund

Instant refund processes the refunds immediately to the customer's bank account.

Batch Refund

In scenarios when you want to process many refunds at a time, you can use batch refunds to process the refunds in one go.



Refund moves to the Success or Failed status in 10 min cooldown window in the Test and Production environment.

In case the refund status is showing as "on-hold" this is due to insufficient funds for the payment gateway. Merchant can create a payment link with a large amount value in response to the refund amount, post this the refund will be initiated.

Eg: The refund amount is Rs.500, then the payment link should be greater than 500 to initiate an on-hold refund.