Refund authorization

Refund authorization is a process where a verifies a customer’s account before issuing a . Similar to purchase authorization but in reverse, the checks with the to confirm the account can receive the funds.

This verification helps prevent fraudulent refunds to invalid or closed accounts, reduces , and improves transparency in the refund process. It also minimizes customer support inquiries by providing clearer status updates, protecting both merchants and customers by ensuring refunds reach their intended destination.