Refunds
Splitit's default behavior for refunds is to reduce the amount of a customer's future installment obligations before putting money back on a customer's card. This credit against future installments is divided equally among all remaining future installments. Any amount that exceeds the remaining future installments will be refunded to the customer's card. You can execute a refund by passing the plan number to the Splitit API via Refund or in your Merchant Portal (where you can specify "partial" or "full" refunds).

Refund Examples

  1. 1.
    Full Refund: John buys a $1000 plane ticket in five installments of $200 each. ABC Airlines would like to perform a full $1000 refund after the first charge has completed. John will not be charged for the next four installments and will be refunded for the first $200 charge.
  2. 2.
    Partial Refund (refund amount is less than outstanding amount): John buys a $1000 plane ticket in five installments of $200 each. ABC Airlines would like to perform a partial refund for $400 after the first charge has completed. John will not receive money back on his card but rather will pay the next four installments at only $100 each.
  3. 3.
    Partial Refund (refund amount is greater than outstanding amount): John buys a $1000 plane ticket in five installments of $200 each. ABC Airlines would like to perform a partial refund for an amount of $900 after the first charge is completed. John will not be charged for the next four installments and will have $100 refunded to his card.

Refunds and the Splitit API

Here is how the various aspects of a refund are represented in the InstallmentPlan object that gets returned from the Splitit API's Refund route:
  • OriginalAmount: This is always the same, it's the amount of the plan when it was created.
  • Amount ("Effective Amount"): This is the number corresponding to the actual funds that are transferred during the administration of a plan, either expected or actual. So if the plan started at $100 and $10 is refunded, this number will be $90, because if nothing else gets refunded, $90 is the total expected amount to be transferred. Similarly, if the customer is completely refunded and the plan is cleared, Amount represents the funds that actually changed hands. Thus if the plan was $100, the customer paid $25 of it and then the plan was cleared (the customer refunded $100), the Amount for the plan is $25, because that's the amount of money that was actually transferred to Splitit.
  • RefundAmount: This is the overage amount that gets credited back to the customer's card when the amount to refund exceeds the remaining future installments.
  • OutstandingAmount: This is how much is left to pay in the plan.
So if you refer back to the examples at the top, here is what they would be in an InstallmentPlan object:
  1. 1.
    OriginalAmount would be $1000, the cost of the plan. ("Effective") Amount would be $200, the whole amount transferred during the plan since it was cleared after the first payment (only $200 changed hands). RefundAmount would be $200, the amount John actually put into the plan. OutstandingAmount would be $0 since the plan is completely cleared.
  2. 2.
    OriginalAmount would be $1000, the cost of the plan. ("Effective") Amount would be $600, the entire amount expected to be transferred during the plan. RefundAmount would be $0, since we have simply reduced future payments and there is no need to give credit back to John yet. OutstandingAmount would be $400, the amount that John has left to pay.
  3. 3.
    OriginalAmount would be $1000, the cost of the plan. ("Effective") Amount would be $200, the money that actually changed hands for the plan. RefundAmount would be $100, the amount that is left over after future payments have been accounted for. OutstandingAmount would be $0, since the plan has been cleared.
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Refund Examples
Refunds and the Splitit API