Partner Refunds

​​PayU partners with merchants to build a trusted payment experience for their customers by refunding online payments within minutes! Offered as a separate service for the merchants, PayU does real-time credits of the refunds into the customer’s bank account. A merchant is charged based on the number of refunds credited instantly for this service.

Payment channels

  • Credit Card: Crediting refunds instantly to a customer’s credit card. The majority are supported via IMPS and others via NEFT.
  • UPI: Direct credit into customer VPA using UPI P2P Push API
  • Auth-Capture: In this model, transactions are authorized only and marked captured post order fulfilment, leading to a way to process the cancel/refund instantly for the services not offered
  • Debit Card: Currently, DC refunds of issuer SBI processed via SBI Direct (135) PG will support instant refunds
  • Net Banking: Partner bank (Kotak NB) offers instant refunds

Integration requirements

If a merchant account already has the PayU Refund system integrated, the Instant Refund service does not need separate integration but only activation from the backend. ​Refunds for transactions done through PayU can be directly initiated using the existing Refund API or Merchant Dashboard.

  1. Merchant Level Enablement: This service will be enabled on merchant Id. All eligible transactions will automatically be refunded via an alternate refund channel.
  2. Transaction Level Enablement: Merchants can decide the service basis of a transaction and not on a global level. Merchant has to pass a new parameter in the refund initiation API which will process that specific refund through an alternate channel (IMPS/NEFT/UPI/MasterCard Send) if eligible. Please find below the additional parameter to be sent.



The platforms should collect the key and salt of the merchants to call the refund API.