This means there is not enough available balance on your merchant account to process the refund.
To increase the available balance you can do the following:
- Configure a Refund Reserve: In the Adyen Customer Area select your merchant account, go to Finance > Balances overview, and select "configure Refund Reserve".
To be able to do this, you need to have the Merchant financial role.
- Transfer funds to our bank account (instructions here) to fill the configured Refund Reserve or top-up the available balance on your account.
- Enable the AutoFunding functionality.
With this, we automatically initiate a direct debit payment when the reserve balance drops below the configured value. The difference in the balance and the configured value will be directly debited from your bank account. Adyen supports direct debit payments in the US (ACH), UK (BACS), and the Eurozone (SEPA). You need to sign an additional document before we can enable AutoFunding. Contact Adyen Support.
For an overview of all refunds that were not processed due to
insufficient balance, select Finance > See all charts and exports > All reports > Modifications not Processed report (data is available from March 31 onwards).
Adyen does not automatically retry refund requests that failed due to insufficient in-process funds. When enough funds are available again, you need to resubmit any failed refund request.