Refund Scenarios

Scenario 1: Refund before split

The flow diagram below shows how a refund is processed before the split is initiated. It is a two step process.

First Step: Customer completes the payment

Step 1: The customer visits the merchant website or the application and adds goods from different vendors to the shopping cart. The customer proceeds to complete the payment.
Step 1.1: The merchant receives the payment request from the customer and creates an order. The order details contain information such as order ID, order amount, and customer name. The merchant creates an order in the Cashfree Payment system.
Step 1.2: Cashfree Payment Gateway receives the order details and creates a payment link for that order. This payment link is sent to the merchant.
Step 1.3: The merchant receives the payment link and sends it to the customer to complete the payment.
Step 1.4: The customer clicks the link and completes the payment. The amount is received by Cashfree Payment Gateway.
Step 1.5: The payment details are captured at Cashfree Payment Gateway end.
Step 1.6: The payment details are stored in the Cashfree system and the payment status is sent to the merchant through payment webhooks.
Step 1.7: The merchant sends the payment status to the customer.
Step 1.8: The customer receives the payment status.

Second Step: Cashfree Payment Gateway processes the refund

Step 2: The customer initiates a refund request through the merchant website or the application.
Step 2.1: The merchant receives the refund request and triggers the Create Refund API. The merchant provides refund details such as the refund amount, refund ID, refund type, split details, and triggers the API.
Step 2.2: The refund is created successfully in the Cashfree system. Cashfree Payment Gateway processes the refund directly, based on the refund details, to the customer account.
Step 2.3: In the case of a standard refund, the refund amount will be processed within 5-7 working days. If it is an instant refund, the refund amount is processed instantly to the customers account.

📘
This situation arises only if the split is provided after successful payment of the order.

Scenario 2: Refund after split and before vendor settlement

The flow diagram below shows how a refund is processed once a split is created but the vendor settlement is not yet processed. It is a three step process.

First Step: Customer completes the payment

Step 1: The customer visits the merchant website or the application and adds goods from different vendors to the shopping cart. The customer proceeds to complete the payment.
Step 1.1: The merchant receives the payment request from the customer and creates an order. The order details contain information such as order ID, order amount, and customer name. The merchant creates an order in the Cashfree Payment system.
Step 1.2: Cashfree Payment Gateway receives the order details and creates a payment link for that order. This payment link is sent to the merchant.
Step 1.3: The merchant receives the payment link and sends it to the customer to complete the payment.
Step 1.4: The customer clicks the link and completes the payment. The amount is received by Cashfree Payment Gateway.
Step 1.5: The payment details are captured at Cashfree Payment Gateway end.
Step 1.6: The payment details are stored in the Cashfree system and the payment status is sent to the merchant through payment webhooks.
Step 1.7: The merchant sends the payment status to the customer.
Step 1.8: The customer receives the payment status.

Second Step: Merchant initiates the split

Step 2: Once the payment is successful, the merchant triggers the Split After Payment API. The merchant provides split information such as vendor ID, split amount/percentage between the merchant and vendor, and the split type. Based on the split information provided, East Split performs the split operations.

Third Step: Customer requests refund from merchant

Step 3: The customer initiates a refund request through the merchant website or the application.
Step 3.1: The merchant receives the customer refund request and calls the Create Refund API including the split. The merchant provides refund details, refund amount, refund ID, refund type and triggers the API.
Step 3.2: The refund is created successfully in Cashfree Payments system. Easy Split deducts the merchant and vendor balances by their respective refund amounts.
Step 3.3: Easy Split confirms the refund initiation to Cashfree Payment Gateway and begins processing the refund.
Step 3.4: Cashfree Payment Gateway initiates the refund directly to the customer account. In case of a standard refund, the refund amount will be processed within 5-7 working days. If it is an instant refund, the refund amount is processed instantly to the customer account.
Step 3.5: The refund is settled to the customer bank account successfully.

📘
This situation is applicable when the split is shared during the order creation (or) after the split has been shared for split after payment.

Scenario 3: Refund after split and after vendor settlement

The flow diagram below shows how a refund is processed once a split is created and the vendor settlement is processed. It is a three step process.

First Step: Customer completes the payment

Step 1: The customer visits the merchant website or the application and adds goods from different vendors to the shopping cart. The customer proceeds to complete the payment.
Step 1.1: The merchant receives the payment request from the customer and creates an order. The order details contain information such as order ID, order amount, and customer name. The merchant creates an order in the Cashfree Payment system.
Step 1.2: Cashfree Payment Gateway receives the order details and creates a payment link for that order. This payment link is sent to the merchant.
Step 1.3: The merchant receives the payment link and sends it to the customer to complete the payment.
Step 1.4: The customer clicks the link and completes the payment. The amount is received by Cashfree Payment Gateway.
Step 1.5: The payment details are captured at Cashfree Payment Gateway end.
Step 1.6: The payment details are stored in the Cashfree system and the payment status is sent to the merchant through payment webhooks.
Step 1.7: The merchant sends the payment status to the customer.
Step 1.8: The customer receives the payment status.

Second Step: Customer requests refund from merchant

Step 2: The customer initiates a refund request through the merchant website or the application.
Step 2.1: The merchant receives the refund request and triggers the Create Refund API. The merchant provides refund details, refund amount, refund ID, refund type and triggers the API.
Step 2.2: Easy Split checks the merchant and the vendor balances to process the refund.
Step 2.3: The respective balances are sent to Easy Split. Based on this, Easy Split checks if the refund can be processed or not.

Third Step: Easy Split processes the refund to the customer account

Step 3: Before initiating the refund, Easy Split checks if the refund can be processed based on the merchant and vendor balance.
Step 3.1: Refund is initiated if both merchant and vendor balances are more than the refund request. The refund amount will be adjusted from the respective future settlements. Cashfree Payment Gateway processes the refund based on the refund details directly to the customer account. The refund is put on hold if merchant or vendor balances are less than the refund request.
Step 3.2: Cashfree Payment Gateway initiates the refund directly to the customer account. In case of a standard refund, the refund amount will be processed within 5-7 working days. If it is an instant refund, the refund amount is processed instantly to the customer account.