Refunds are a normal part of running an online business. How you handle them can either build customer trust or create serious customer service headaches. This guide covers everything Nepali merchants need to know about digital payment refunds.
Refund Timelines in Nepal
The most important thing to communicate to customers upfront: digital payment refunds in Nepal are not instant.
| Provider | Typical Refund Timeline |
|---|---|
| Khalti | Fast, often same day |
| eSewa | A few business days |
| Fonepay | A few business days |
| Bank Card | About a week |
These timelines are set by the payment providers, not by PayBridgeNP or you as a merchant. Set customer expectations accordingly.
Types of Refunds
Full refund: Return the complete original payment amount.
Partial refund: Return a portion of the original payment, useful for:
- Cancelling one item from a multi-item order
- Applying a discount after the fact
- Service not fully delivered
Multiple partial refunds: You can issue multiple partial refunds against a single payment as long as the total doesn't exceed the original amount.
Merchant credit: Instead of processing a refund, you issue store credit. This keeps money in your account and is often simpler. Best used when customers are likely to buy again.
Processing Refunds with PayBridgeNP
From the Dashboard
- Go to Payments in your dashboard
- Find the payment (search by order ID, email, or amount)
- Click the payment to open details
- Click Refund
- Enter the amount (defaults to full refund)
- Add a reason (optional but useful for records)
- Confirm
PayBridgeNP routes the refund according to the provider's supported workflow: Khalti can be automated, eSewa is recorded for manual processing in the eSewa merchant panel, and Fonepay refunds are tracked through PayBridgeNP with provider-status reconciliation.
Via API
const refund = await paybridge.refunds.create({
paymentId: "pay_abc123",
amount: 75000, // NPR 750 - partial refund
reason: "Item out of stock - partial order fulfilled",
metadata: {
orderId: "ORD-2026-001",
refundedItems: ["SKU-001"],
},
});
console.log(refund.status); // "pending" | "processing" | "completed" | "failed"
In WooCommerce
Process the refund from the PayBridgeNP dashboard. The WooCommerce order keeps the PayBridgeNP payment reference, but provider-specific refund actions and buyer notifications happen in PayBridgeNP.
The refund is processed and the order status updates accordingly.
In Shopify
Process the refund from the PayBridgeNP dashboard. After PayBridgeNP confirms the refund, the Shopify order is mirrored to Partially refunded or Refunded depending on the cumulative amount.
Handling Refund Webhooks
When a refund is processed, PayBridgeNP sends webhook events:
case "payment.refunded": {
const { paymentId, amount, reason } = event.data;
await db.orders.addRefund({
paymentId,
refundedAmount: amount,
reason,
refundedAt: new Date(),
});
await sendRefundConfirmationEmail(event.data.metadata.orderId, amount);
break;
}
What Customers Need to Know
Set these expectations clearly in your refund policy:
- Khalti refunds: Returned to the Khalti wallet balance, often within a day or two
- eSewa refunds: Returned to the eSewa wallet balance, usually within a few business days
- Fonepay refunds: Returned to the payer's bank or wallet, usually within a few business days
- No cash refunds for digital payments (payments go back to the original method)
Include this in your FAQ or checkout page to reduce customer service contacts.
Refund Best Practices for Nepal
Proactive communication: Don't wait for customers to ask about their refund. Send an email when you initiate the refund and another when it's confirmed complete.
Don't delay refunds unnecessarily: In Nepal, word of mouth is powerful. A fast, painless refund can turn an unhappy customer into a loyal one. A slow, contested refund becomes a social media complaint.
Document refund reasons: Use the reason field when creating refunds. This data is invaluable for understanding why refunds happen and reducing them.
Partial refunds are underused: Many merchants default to full cancellations when a partial refund would serve both parties better. "We're out of 1 of your 3 items, issuing a partial refund of NPR 350" is a better outcome for everyone than cancelling the whole order.
Bank-routed refunds take longer, warn proactively: Refunds that return to a bank account rather than a wallet balance can take several business days. Set that expectation upfront so customers who expect instant refunds don't contact support unnecessarily.
What You Can't Refund
Certain payments can't be refunded through the normal flow:
- Payments older than a few months (the exact window varies by provider)
- Transactions that have already been partially disputed
- Payments in a disputed state
For these cases, you'll need to contact the payment provider directly (eSewa, Khalti, or Fonepay) with your transaction reference to resolve it on their end.
Building a Refund Policy
Every Nepali online business should have a visible refund policy. At minimum, include:
- Refund eligibility window (e.g., "within 7 days of purchase")
- What's eligible for refund vs. exchange vs. store credit
- Non-refundable items (digital downloads after delivery, custom orders, etc.)
- Timeline customers should expect
- How to request a refund (email, dashboard, form)
A clear refund policy reduces disputes and builds trust. Customers are more willing to buy from stores that clearly explain what happens if something goes wrong.
Create your free PayBridgeNP account and start managing refunds from your dashboard.