Are processing fees refunded when a refund is issued?

Are processing fees refunded when a refund is issued?

• A. Yes, all fees are refunded
• B. No
• C. Yes, but only partially
• D. Sometimes, depending on merchant terms

Answer: (B)

Processing fees are not refunded when you issue a refund. The fee Stripe charges covers the work of processing the original payment—authorization, network routing, settlement, and risk checks. When you refund the customer, the refunded amount goes back to the customer, but the processing fee that was earned on the initial charge isn’t reversed. So you still incur that fee even though the customer is refunded. For example, a $100 charge with a 2.9% + 30¢ fee would have $3.20 in processing fees; if you refund the full $100, the customer gets their money back, but Stripe keeps the $3.20. This applies regardless of full or partial refunds, so the processing fee isn’t refunded.

Processing fees are not refunded when you issue a refund. The fee Stripe charges covers the work of processing the original payment—authorization, network routing, settlement, and risk checks. When you refund the customer, the refunded amount goes back to the customer, but the processing fee that was earned on the initial charge isn’t reversed. So you still incur that fee even though the customer is refunded. For example, a $100 charge with a 2.9% + 30¢ fee would have $3.20 in processing fees; if you refund the full $100, the customer gets their money back, but Stripe keeps the $3.20. This applies regardless of full or partial refunds, so the processing fee isn’t refunded.