How are refunds and chargebacks managed in Adyen for Platforms?
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Merchant Dispute Management
Refunds with Adyen for platforms
With every payment, capture, or refund on Adyen for Platforms, you can split the funds between any number of balance accounts in your platform, including your liable balance account. For example, when a customer pays, you can split the funds into two parts. One part goes to your liable balance account as your platform's fee, and the other part goes to your user's balance account as the sale amount.
A refund over the full transaction amount will be processed according to the initial split of the payment request. This will happen even if the refund request has no split information. Hence, all split amounts are debited from the accounts to which they were initially credited.
If a refund is initiated with new split information that differs from the splits of the original payment, the new splits will decide to which accounts the funds are debited.
A partial refund will be processed according to the split information of the refund request. However, if a partial refund is initiated without split information, the funds will be debited from the platform’s liable account, not from the accounts specified in the original payment.
For example, a payment of 100€ with a 90€ split to a regular account holder and a 10€ split to the platform’s liable account:
- If the full amount is refunded with no split information specified, Adyen will debit 90€ from the regular account holder and 90€ from the platform’s liable account.
- If there's a split specified in the refund request, it'll be processed according to this split, regardless of whether it's a full or partial refund.
- If a partial refund is requested without split information, we process the refund by debiting the funds from the platform's liable account, not from the accounts specified in the original payment.
Chargebacks with Adyen for platforms
For chargebacks, we offer 2 options:
- the platform can take full liability for chargebacks
- or share the liability with the account holder
If the platform takes full liability, all chargebacks will be fully debited from the platform’s liable account, regardless of chargeback amounts.
If the platform and account holders share liability, the flow is similar to the flow of refunds. The platform doesn't initiate chargebacks, so they don't include split information. If a chargeback over the full value of the original payment is initiated, Adyen will debit funds according to the original split. However, if the chargeback is partial, the chargeback amount will be taken from the liable account.
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