How are refunds and chargebacks managed and deducted in Adyen for Platforms?

How are refunds managed and deducted in Adyen for platforms? 

A refund over the full transaction amount will be processed according to the split that was initially indicated in the payment request even if no split information is provided in the refund request. Hence, all split amounts are debited from the accounts that they were initially credited to.

If a refund is initiated including new split information that is different from the splits of the original payment, these “new” splits will determine from which accounts the funds are debited.


A partial refund will be processed according to the split information that is included in the refund request. However, if a partial refund is initiated without split information, the funds will be debited from the platform’s liable account and not from the accounts specified in the original payment.

 

For example, a payment of 100 EUR with two a 90 EUR split to a regular account holder and a 10 EUR split to the platform’s liable account:

  • If the full amount is refunded, with no split information specified, Adyen will debit 90 EUR from the regular account holder and 90 EUR from the platform’s liable account.
  • If a split is specified in the refund request, it will be processed according to this split, regardless of whether it is a full or partial refund
  • If a partial refund is requested with no split information, we process the refund by debiting the funds from the platform's liable account and not from the accounts specified in the original payment.

 

How are chargebacks managed and deducted in Adyen for platforms? 

For chargebacks, we generally offer two configuration options. The platform can decide to 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 platform and account holders share liability, the flow is similar to the behavior explained above for refunds. Chargebacks are not initiated by the platform, so they do not 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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