What happens to a refund if the original card or account has been closed?

If the original card or account has been closed, and you do a refund for a transaction linked to that account, three things can happen:

  1. If the shopper has a new account with the same bank or card issuer, the funds are automatically refunded to their new account
  2. The funds are sent back to Adyen because there is no new account with the same bank or card issuer to refund the money. In this case the final status of the transaction is RefundedReversed, and you should manually transfer the money to the shopper
  3. The funds are being held by the receiving bank, who are awaiting forwarding instructions. Here, you can provide the Acquirer Reference Number (ARN) to the shopper, and advise them to contact their bank. Their bank can use the ARN to track the refund
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