Refund an Open Banking Payment RESTful API

API Details

The Refund Payment service allows you to refund an Open Banking payment.

When you initiate a refund request, a new refund object is created.

The refund request object may be in one of three statuses:


Successful Refund

Where a refund request is successful:

  1. The user calls the /payments/{paymentId}/refunds service. Provided the referenced payment is in PAYMENT_RECEIVED status (and all other Refund Configuration constraints are met), a refund object is created in REFUND_PENDING status. Note that the status of the original payment is unchanged (it remains in PAYMENT_RECEIVED status).
  2. A Credit Transfer payment is initiated to the customer account linked to the provided paymentId.
  3. The payment is successfully processed - funds are credited to the PSU. The refund object’s status is updated to REFUND_COMPLETE.
  4. A Payment Refunded webhook notifies the merchant of the successful refund. See Open Banking Payment Refunded Event in the Webhooks section for more details.

Unsuccessful Refund

Where a refund request is unsuccessful:

  1. The user calls the /payments/{paymentId}/refunds service and all validations (as mentioned above) are passed.
  2. A Credit Transfer payment is initiated to the customer account linked to the provided paymentId but cannot be processed e.g. the PSU’s account is closed.
  3. The refund object is updated to REFUND_REJECTED.
  4. A Payment Refund Rejected webhook notifies the merchant of the unsuccessful refund. See Open Banking Payment Refunded Rejected Event in the Webhooks section for more details.

Refund Options

It is possible to issue a:

  • Full refund.
  • Partial refund.
  • Full refund and a compensation amount.

The value of your refund is handled in the API via the refundAmount and compensatioinAmount values.

Refund Configuration

To allow merchants to manage the refund process, it is possible to apply limits on the value of refunds. The following settings may all be configured per merchant; please discuss your requirements with your Account Manager:

Setting Description Default
Refund Amount Limit per Payment The maximum amount that can be refunded against a payment. The sum of all (partial) refunds against a single payment cannot exceed this number 0
Maximum Refund Percentage per Transaction Percentage of the original transaction amount that can be Refunded in a single refund (whole numbers only, no decimal places, e.g. 1% is acceptable, 0.1% is not) 0
Refunds Period The maximum Refund period in days; it is not possible to initiate a refund for a payment that is older than this configured number of days. 540

These configurations are evaluated when you make a refund request.

A refund will be initiated where:

  • The payment you want to refund is in PAYMENT_RECEIVED status.
  • The refund amount does not exceed:
    • The (global) maximum refund amount
    • The refund transaction amount limit.
  • The refund occurs within the defined refunds period.

Remittance Information

When providing remittance information, remittanceInformation.reference, in GBP payments, note that:

  • A maximum of 18 characters are allowed.
  • The text used must conform to the following regular expression: ^[a-zA-Z0-9\- ,.]*$

Refund for Non-Nuapay-Account Owners

In Open Banking UK, the OBIE specification allows for merchants to retrieve their payers’ account details. This feature is available for banks that have implemented the specification v3.1.6 (or later).

To use the PSU account details:

  1. Call the Retrieve Payment API.
  2. If the details have been retrieved from the payer’s bank, they are included in the debtorAccount object.
  3. Use the details to initiate a payment to the PSU.
  4. As you do not have a Nuapay account, you will need to use the account details to create a beneficiary and initiate the payment via another system.