ACH Direct Debit refunds operate differently from credit card refunds:
Refunds for ACH Direct Debit payments must be initiated within 180 days from the date of the original payment.
A refund can only be processed once the payment process has been completed. If the payment fails, the full or partial refund will be marked as cancelled because the money was never debited from the customer's bank account.
When issuing a refund, you should inform your customer immediately that the refund typically takes three working days to arrive in their bank account.
If you proactively issue your customer a refund while the customer's bank also initiates the dispute process, your customer may receive two credits for the same transaction.
These refunds will be processed as a credit and will include a reference to the payment descriptor for the original payment.