Pay by Bank refunds allow you to return payments to your customers using your available account balance.
This article explains how refunds work, how long they take, how to check their status, and what to do if a refund is Pending or Failed.
How do Pay by Bank refunds work?
Pay by Bank refunds are initiated as soon as you request them.
Refunds are paid to your customer from your available account balance. If there aren’t enough funds available, the refund will remain Pending for up to 3 days while funds accumulate.
During this period, your disbursements will be paused.
If sufficient funds become available, the refund will continue processing. If funds aren’t available after 3 days, the refund will be marked as Failed.
Once a refund is Pending, it cannot be cancelled.
Where does the money for a refund come from?
Refunds are paid directly from your available account balance.
If you have enough funds available, the refund amount will reduce your disbursement for that day.
How long does a Pay by Bank refund take?
Pay by Bank refunds are initiated as soon as you request them.
If sufficient funds are available, your customer will typically receive their refund within a few hours of it being sent.
Refunds may take longer if there aren’t enough funds in your account balance.
How much can I refund?
You can refund up to the original payment amount.
You can issue either:
- A full refund for the original payment amount.
- Multiple partial refunds, up to the total original payment amount.
The total refunded amount cannot exceed the original payment.
Why is my refund showing as Pending?
A refund will show as Pending if there aren’t enough funds in your account balance to complete it.
The refund can remain Pending for up to 3 days while funds accumulate.
Important: Your disbursements will be paused while the refund is Pending.
If enough funds become available during this period, the refund will continue processing.
If sufficient funds aren’t available after 3 days, the refund will move to Failed status.
How can I check the status of a refund?
You can check individual refund statuses in Zopa Dash.
- Log in to Zopa Dash.
- Select Orders from the left-hand menu.
- Select the relevant transaction.
- Expand the transaction details.
- Check the refund status in the bottom-right of the expanded view.
Your refund will show one of the following statuses:
- Pending — The refund is waiting for sufficient funds.
- Approved — The refund has been approved.
- Failed — The refund couldn’t be completed.
You can also check refund statuses within your payment plugin’s dashboard.
Can I add funds to complete a Pending refund?
Yes. You can top up your account balance by sending funds to your Modulr account using the reference BALANCE TOP UP.
You can find your account details in Zopa Dash → Balances → Overview → Account Details.
For step-by-step instructions and information about what happens to any remaining funds, see Top up your Zopa Dash balance for refunds.
Can I cancel a Pending refund?
No. Pending refunds cannot currently be cancelled.
If sufficient funds become available during the 3-day pending period, the refund will continue processing.
If sufficient funds aren’t available after 3 days, the refund will move to Failed status.
What does it mean if my refund has Failed?
A refund will be marked as Failed if there aren’t enough funds in your account balance after 3 days.
If you still need to refund your customer, you can request another refund once sufficient funds are available.
Why can’t I see the refund button in WooCommerce or Magento?
The refund button is only available when:
- Your account has been updated to use the relevant payouts functionality.
- Your customer’s payment has been marked as Approved.
- The payment hasn’t already been fully refunded.
If the payment is still Pending, or you’ve already refunded the full amount, the refund button won’t appear.
If you believe you should be able to issue a refund but the button isn’t available, contact merchantsupport@zopa.com for assistance.
Can I test Pay by Bank refunds?
Yes. If you have a test store in WooCommerce or Magento, you can use your test environment API keys to create test Pay by Bank orders.
Once your test orders are Approved, you can issue test refunds.
The test environment also allows you to simulate refunds where there aren’t enough funds available, helping you understand how Pending refunds behave.
Need more help?
If you’re unable to complete a refund, can’t find a transaction or need assistance with a Pending or Failed refund, contact our Merchant Support team at merchantsupport@zopa.com.
Please include the relevant transaction details so our team can investigate.