Refund of Bitcoin payments
This post is also available in: German
Refunds of Bitcoin payments to customers
A refund of Bitcoin payments is a refund on a Bitcoin payment already made, for example to give customers a credit note.
A refund is a payment on a Bitcoin payment already made. For example, if a customer has paid for a product via Bitcoin and for whatever reason, the merchant wishes to refund all or part of the amount.
The refunds to a customer presented here are based on the pull-payments function.
In the case of a refund, there was previously a receipt of payment and a refund will be made based on this receipt of payment.
Previously, if a merchant wanted to make a refund, this refund had to be entered manually. The merchant had to ask the Customer for a Bitcoin address to which the refund should be paid.
To obtain a refund, the merchant goes to the Invoice Overview and clicks on Refund. Then select the amount to be refunded and send the customer the link by email.
The Customer can then pick up his credit note and transfer it to his Bitcoin Wallet.
In the Invoices section, the invoice for which a refund is to be made is selected.
We click on details for this invoice
We receive the detailed view of the invoice with all relevant information.
There we click on “Issue refund”.
We have the possibility to make a refund on the full amount. A partial credit is not possible.
It can be specified whether the original Bitcoin purchase amount should be refunded or the purchase amount based on the current Bitcoin price.
However, it can also be specified that the Fiat amount paid at that time will be paid.
After choosing one of the three options, click on “Create refund
You will then be shown the withdrawal form, which can be sent to the customer.
You copy the Bitcoin address displayed in the browser into an email and send it to the customer.
Customers can enter their own Bitcoin address in the Destination Address field and initiate the refund.
When the payee opens the link, for example, this page is displayed:
The recipient of the payment URL can enter their own Bitcoin address in the Destination address field and request payment via “Claim Now”.
After clicking on “Claim Now”, the customer will be shown a confirmation.
At the same time the merchant is informed in his backend that a refund has been requested.
In the status window the administrator is informed that a credit note has been requested.
The administrator switches to the payouts section and is shown all transactions that are waiting for a payout.
Afterwards the payment must be signed. This can be done with the “Sign with …”. button.
Since we use the BTCPay internal Hot Wallet for managing the credit, we sign with “Sign with – the hot wallet
We then receive an overview of the transactions again and then click on Broadcast it
With the process described here, a Bitcoin credit note can very easily be issued to a customer. This can be useful if, for example, the customer returns his order or there was an overpayment and you want to refund the overpaid amount.
The employee from the accounting department can enter the refund into the system and the administrator then finally releases the payment. Instead of the release by the internal BTCPay Wallet a payout can be secured by a hardware key.
With the current BTCPay version, partial credits and credits on Lightning are not yet possible. But this is planned for one of the future versions.
The refund of a Bitcoin payment presented here is based on the fact that a Customer has previously paid with Bitcoin.
If you want to make a larger number of payouts to different recipients, we would like to refer you to the article Bitcoin Payout Service. This payout service is suitable for bulk payouts, for example commissions to affiliates and partners or for profit payouts at gaming sites.
This post is also available in: German