Most common questions and guidance on how to manage refunds in your Mexico Stripe account.

1. Creating a refund – how do I refund a payment using Stripe API or Dashboard?

You can refund non-disputed payments to your customers either using the Stripe API or directly from the Dashboard.

From the Dashboard

• Find the charge to be refunded on the Payments overview page.
• Click the ••• icon to the right of the charge and select Refund charge.
• Enter the amount to be refunded. The default is a full refund. For a partial refund, enter a different amount to be refunded.
• Select a reason for the refund. If you select Other, you must provide an explanatory note, which will then be attached to the refund.
• Click Refund.

Using the Stripe API

• Create a create_refund call in the API.
• In the API call, include the charge ID to refund.
• To refund an amount that differs from the full charge amount, include the amount parameter and enter the amount to refund. If no amount is entered, the default action will be a refund of the full charge amount.
• Run the API call.

2. Cancelling a refund – how do I cancel a refund?

For a short window of time after creation, some card refunds support cancellations via the dashboard. The refund must not have been processed as a charge reversal. If cancellation is no longer available, you will need to create a new charge for the customer in the amount of the refund in order to recoup the funds.

3. Refunding to prevent disputes – can I refund a payment to prevent a dispute?

Yes – if you suspect that a charge could be fraudulent, it is recommended that you refund it instead of letting it be disputed. If selling physical products, refund cardholders who do not wish to wait for items that are expected to be delayed longer than the shipping time that was originally communicated. The refund should be issued to their original payment method rather than providing store credit. To avoid disputes and refunds, ensure that product descriptions, product images, item conditions, the return policy, the refund policy and any money-back guarantees are accurate, clearly listed and easy to understand.

4. Refund timeline – how long does it take for a refund to be processed in Mexico?

From a merchant perspective, refunds take up to two working days in Mexico to be processed on your Stripe account. The cardholder's refund may take up to 15 days after the refund is processed. However, this process varies between issuers, which means that refunds may be received earlier or later than expected.

5. Missing refund – what should I do if my customer doesn't receive a refund in the expected timeframe?

The cardholder should get in touch with the issuer if the refund is not received within 15 days.

6. Closed account – what happens to a refund if the bank account is closed?

In general, issuers will allow the refund to be processed and accept the funds. If the cardholder has the same card issuer and bank account, then funds will be successfully credited to that account. If, after 15 days, the cardholder has not yet received the refund in their account but it looks like it has been successful on Stripe's side, they should contact their financial institution.

7. Refund fees – are Stripe fees also refunded when processing a refund?

There are no fees to refund a payment, but Stripe's fees on the original payment will not be returned in the event of a refund. A large proportion of the underlying cost of payment processing is driven by fees assessed by banks and payment networks (such as Visa and Mastercard). These networks set rules about which fees apply to refunded payments, and in many cases, banks and card networks keep the entire upfront cost of a refunded transaction. For some regions and payment types, refunded payments also incur additional fees.

We aim to make our pricing simple and transparent, and our standard fees include access to a variety of features such as fraud protection, reporting and other tools for managing your payments. To address these underlying payment processing costs and to continue providing these services as part of our standard pricing, we do not return our fees when a payment is refunded.

8. Insufficient funds for a refund – how can I top up my account to cover a refund?

You can add funds to cover existing negative balances or proactively add funds to be used for future refunds or chargebacks that will be held separately from your earnings, payouts and funds from other Stripe products. To do this, go to the "Saldos" section in your Dashboard and click on the "Agregar al Saldo" option.

The funds added through this process are used to cover refunds and chargebacks only. If you are using Connect and looking to add funds to pay out to connected accounts, this option is still not available in Mexico.

9. Closed account – how are refunds and disputes managed after closing a Stripe account?

Even if the account has been closed, the account owner will still be responsible for any refunds that are issued or any disputes that arise. As a result, it is normally suggested to leave the account dormant rather than closing it altogether, as this makes it easier to be responsive if these situations arise.