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Refunds and Expired / Canceled Cards
Q: Are we charged fees for refunds?
A: Stripe Fees are charged at the time the charge is initiated. There are no additional charges for refunds, but the original fees are not returned per Stripe's policy. If if charge is made for $100, $3.10 is subtracted (2.7% plus 30 cents) and $96.90 is credited to your Stripe account. If you later refund the entire charge, $100 is deducted from your Stripe account. If there is not a sufficient balance, Stripe will debit your linked bank account.
Q: Can a transaction be refunded if the original card used has expired or been replaced?
Almost all refunds are "linked" to the original transaction and can only be applied to the card used for that transaction. If a card expires and is re-issued with a new expiration date, typically this will not prevent refund processing; the account number is the same and the payment gateway considers it the same card; expiration dates can be validated for payments but they are not validated for refunds.
If a card has been canceled or re-issued due to fraud such that the card number has changed, then the original account is no longer active. Stripe has a mechanism called Automatic Card Updater that works with payment networks to automatically update cards on file in these cases so that recurring transactions and refunds will work even if the card number has changed, but whether this mechanism catches any particular card depends upon the issuer.
It is not possible to issue a refund to an entirely separate card (called an 'un-linked credit'). Neither Stripe nor inLeague support un-linked credits.
Transactions Issued Through Stripe
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