Note that this process only applies to refunds in the same currency of the country they were ordered from. If your business conducts cross-border transactions, those refunds will be processed from your bank account.
Sezzle has introduced the option for merchants to issue refunds via credit/debit card.
If Sezzle is unable to collect funds via reserves in your Sezzle account, we will require a credit/debit card on file to issue a refund. Per our merchant agreement, any refunds issued through a credit/debit card will incur a refund fee charged to the merchant.
To avoid any refund fees, Sezzle recommends you set up a Refund Reserve here to cover refunds. You can learn more about Refund Reserves here.
Why is Sezzle introducing credit/debit cards to the refund process?
Sezzle needs to ensure that shoppers are protected and receive their refunds. Having a credit/debit card on file is a preventive measure that helps safeguard you and your shoppers and enables a smoother refund process.
Is using a credit/debit card to issue refunds required?
If your account does not have any existing reserves and/or the card on file does not have sufficient funds, then yes, Sezzle will require a credit/debit card on file to issue the refund.
Which credit/debit cards will Sezzle accept to issue refunds?
Note that cards with an expiration date within 2 months will not be accepted.
How can I issue a refund using a credit/debit card?
- Log in to your Merchant Dashboard.
- Go to the order to be refunded and click refund.
- If you do not have enough funds in your Interest Account, Payouts, or Reserves, you must add a card.
- Add the card that you desire to use for the refund payment.
- Confirm payment and click submit.
Capital One does not allow their credit cards to be used with Buy Now, Pay Later services. Therefore, we no longer accept these as payment methods for Sezzle. Please contact your bank with any additional questions on this.
Will issuing a refund via credit/debit card impact my refund policy?
No, issuing a refund via credit/debit card will not impact your refund policy – you are free to choose whatever refund policies best fit your business.
How will this impact refunds issued via my e-commerce platform?
If you have reserve funds available in your Sezzle account to cover the refund, or if you already have a credit or debit card on file, you will be able to issue the refund via your e-commerce platform. However, if you do not have funds available in your reserves or a credit or debit card on file when issuing the refund via your e-commerce platform, you will be required to issue the refund via the Sezzle Merchant Dashboard using a credit or debit card.
Will Sezzle collect refunds via my bank account on file?
Only if we are unable to charge the card on file or for cross-border transactions if there aren't sufficient funds in your Reserves or payouts.