Handling refunds
Refund processes can appear complex, especially when different payment methods such as Klarna or direct card payments are involved. Below, we outline the steps and responsibilities to help clarify who to contact and what to check depending on the refund scenario.
Overview of Refund Responsibilities
Refund responsibilities depend on the payment method used:
Refunds processed through Klarna: Klarna manages transactions and payouts to customers.
Refunds for payments made by card (e.g., Visa/Mastercard): Refunds are handled by the card's issuing bank.
Kustom's role: Kustom cannot intervene directly in the refund.
Refunds for payments made through Klarna
If an order was paid using Klarna and the order has status refunded in Kustom Portal, Klarna is solely responsible for processing and sending the refund to the customer. Kustom and merchants do not have visibility or control over this process.
Situations where the refund was completed require the customer to reach out to Klarna for further assistance. Klarna will work to trace any disbursement issues to the customer's account.
Action for customers: If the refund has not been received, contact Klarna customer support directly to trace the transaction.
Refunds for payments made through Billie
If an order was paid using Billie and the order has status refunded in Kustom Portal, Billie is solely responsible for processing and sending the refund to the customer. Kustom and merchants do not have visibility or control over this process.
Situations where the refund was completed require the customer to reach out to Billie for further assistance. Billie will work to trace any disbursement issues to the customer's account.
Action for customers: If the refund has not been received, contact Billie customer support directly to trace the transaction.
Refunds for payments made by other available payment methods
When a purchase is made using other payment methods here’s what you need to know.
How refunds are processed
Refunds for these payment types are managed directly by the customer’s bank or card issuer.
In some cases, the bank may release the original payment hold instead of showing a separate refund transaction. This means the refunded amount may simply re-appear in the customer’s available balance without a visible refund entry.
What customers should do
If a customer doesn’t see their refund yet, they should contact their bank to:
Confirm whether the refund or adjustment has been processed.
Check whether a pending hold or authorization from the original purchase has been released.
When Kustom can help
If the customer hasn’t received their refund after 10 working days, you as the merchant can contact Kustom support on their behalf.
After this period, Kustom support can provide a trace ID to help the customer’s bank locate the refund.
Please note: Trace IDs can only be issued for refunds on card payments made outside of Klarna, and only after the full 10 working days have passed.
End Customer Guidelines
Here’s a quick reference for customers experiencing refund issues:
Klarna payments: If the order is refunded but refund not received, the customer needs to contact Klarna for a detailed trace.
Billie payments: If the order is refunded but refund not received, the customer needs to contact Billie for a detailed trace.
Other available payment methods: The customer should check for adjustments in their account and contact their bank for further support if issues persist. If the refund hasn't been not received after 10 working days, Kustom can support the merchant by providing a trace ID.