This article is to inform you a little bit about the refund process at Instamojo. One of the most frequent questions regarding the refunds is whether we charge anything on refunding a transaction. Well, no! Instamojo does not levy any additional charges on refunds.
But it's worth noting that the transaction fee levied during the successful payment, is non-refundable. Hence, as a merchant, when you issue a full refund to your customer, the entire amount of the transaction will be credited back to the customer, and the fee amount that was charged on the original transaction will be charged to you.
As a merchant, you initiate a refund on 1000 INR transactions that have not been paid out to you yet. In such a case, you will be charged with the transaction fee of 27.14 INR**. This is because that amount also needs to be refunded back to the customer as it is a part of the original transaction amount.
As a merchant, you initiate a refund on a 1000 INR transaction that has been paid out to you. In this case, the payout process to you will be the amount after the transaction fee(27.14 INR**) deduction. In case of a refund, the whole amount will be refunded back to the customer, including the deducted fee amount. Hence, the fee amount will be charged to you in your next payout or will be added as a deficit balance in your Instamojo account.
**The transaction fee can depend on the mode of payment, and the type of product.
We hope this article throws some light on the process. You can always get in touch with us regarding any queries, at email@example.com.