> ## Documentation Index
> Fetch the complete documentation index at: https://alguna.com/docs/llms.txt
> Use this file to discover all available pages before exploring further.

# Refunds

> Process refunds for payments and manage refund workflows

# Refunds

Refunds return money to customers for payments they've made. Alguna supports full and partial refunds through the dashboard.

***

## Refund Types

| Type               | Description                  |
| ------------------ | ---------------------------- |
| **Full Refund**    | Return entire payment amount |
| **Partial Refund** | Return portion of payment    |

***

## Creating a Refund

1. Navigate to **Invoices** in the sidebar
2. Find and open the invoice
3. Go to the **Payments** tab
4. Find the payment to refund
5. Click **Refund**
6. Enter amount (or select full refund)
7. Add reason for the refund
8. Click **Process Refund**

<Tip>
  The refund is processed through your payment provider (e.g., Stripe). Processing time depends on the payment method—typically 5-10 business days for card refunds.
</Tip>

***

## Refund Status

| Status         | Description                         |
| -------------- | ----------------------------------- |
| **Pending**    | Refund initiated, processing        |
| **Processing** | Being processed by payment provider |
| **Succeeded**  | Refund completed                    |
| **Failed**     | Refund failed                       |

### Status Flow

```mermaid theme={null}
stateDiagram-v2
    [*] --> Pending: Created
    Pending --> Processing: Submitted
    Processing --> Succeeded: Completed
    Processing --> Failed: Error
```

***

## Partial Refunds

You can issue multiple partial refunds up to the original payment amount.

**Example:**

| Action           | Amount   | Remaining Refundable |
| ---------------- | -------- | -------------------- |
| Original payment | \$300.00 | \$300.00             |
| First refund     | \$100.00 | \$200.00             |
| Second refund    | \$75.00  | \$125.00             |
| Third refund     | \$125.00 | \$0.00               |

To issue a partial refund:

1. Navigate to the payment
2. Click **Refund**
3. Enter the partial amount
4. Add reason
5. Process

***

## Refund via Credit Note

For proper accounting documentation, create a credit note along with the refund:

1. Navigate to **Invoices** → Select invoice
2. Click **Create Credit Note**
3. Enter the amount to credit
4. Add reason
5. Check **Process Refund** to return funds
6. Click **Create**

This creates both a credit note for your records and processes the refund.

See [Credit Notes](/invoices/credit-notes) for more details.

***

## Handling Failed Refunds

If a refund fails:

1. Navigate to **Invoices** → **Payments**
2. Find the failed refund
3. Check the failure reason:

| Reason               | Description               | Resolution           |
| -------------------- | ------------------------- | -------------------- |
| **Card expired**     | Original card has expired | Issue credit instead |
| **Account closed**   | Bank account closed       | Issue credit instead |
| **Processing error** | Temporary error           | Retry later          |

4. Click **Retry** or choose to issue a credit to the customer's account instead

***

## Accounting Impact

When a refund is processed:

1. **Revenue reversal** - Revenue is reduced for the period
2. **Credit note created** - Documentation for the refund
3. **Payment status updated** - Payment marked as refunded/partially refunded
4. **Invoice status may change** - If fully refunded

***

## Webhooks

| Event            | When Sent                                          |
| ---------------- | -------------------------------------------------- |
| `refund.updated` | Refund status changes (created, succeeded, failed) |

Configure webhooks in **Settings → Webhooks**.

***

## Viewing Refund History

### For a Specific Invoice

1. Navigate to **Invoices** → Select invoice
2. Go to **Payments** tab
3. View all payments and refunds

### Across All Customers

1. Navigate to **Reports → Refunds** (if available)
2. Filter by date range, customer, or reason
3. Export data as needed

***

## Best Practices

<CardGroup cols={2}>
  <Card title="Document Reasons" icon="file-lines">
    Always include a clear reason and reference any support tickets.
  </Card>

  <Card title="Use Credit Notes" icon="receipt">
    Create credit notes for proper accounting trails.
  </Card>

  <Card title="Consider Credits" icon="coins">
    For service issues, offer account credits instead of cash refunds.
  </Card>

  <Card title="Monitor Patterns" icon="chart-line">
    Track refund reasons to identify product or billing issues.
  </Card>
</CardGroup>

***

## Common Scenarios

### Subscription Cancellation

Customer cancels mid-period and requests refund for unused time:

1. Calculate the unused portion
2. Navigate to the invoice
3. Create a credit note for the unused amount
4. Process the refund

### Service Issue Compensation

Customer experienced service issues:

1. Navigate to the customer's profile
2. Choose between:
   * **Refund**: Return money via original payment method
   * **Credit**: Add credit to their account for future invoices
3. Document the incident reference

### Billing Error

You accidentally overcharged a customer:

1. Navigate to the invoice
2. Create a credit note explaining the billing error
3. Process the full refund for the overcharge amount

***

## Next Steps

<CardGroup cols={2}>
  <Card title="Credit Notes" icon="receipt" href="/invoices/credit-notes">
    Learn about credit notes.
  </Card>

  <Card title="Invoices" icon="file-invoice" href="/invoices/invoicing-config">
    Return to invoicing configuration.
  </Card>
</CardGroup>