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 | Same day to 2 business days |
| eSewa | 1-3 business days |
| ConnectIPS | 3-5 business days |
| Bank Card | 5-7 business days |
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 to the correct provider automatically.
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-2025-001",
refundedItems: ["SKU-001"],
},
});
console.log(refund.status); // "pending" | "processing" | "completed" | "failed"
In WooCommerce
- Go to WooCommerce > Orders
- Open the order
- Click Refund
- Enter the refund amount for each line item (or override total)
- Click Refund via PayBridgeNP
The refund is processed and the order status updates accordingly.
In Shopify
- Go to your Shopify admin
- Open the order
- Click Refund
- Select items to refund (or enter custom amount)
- Click Refund NPR X
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;
}
case "payment.refunded": {
// Notify your team - manual intervention may be needed
await notifySupport(event.data);
break;
}
What Customers Need to Know
Set these expectations clearly in your refund policy:
- Khalti refunds: Returned to Khalti wallet balance in 1-2 business days
- eSewa refunds: Returned to eSewa wallet balance in 1-3 business days
- ConnectIPS refunds: Returned to bank account in 3-5 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.
ConnectIPS refunds take longer - warn proactively: If a customer paid via ConnectIPS, explicitly warn them that bank refunds take 3-5 business days. Customers expecting instant refunds will contact support unnecessarily.
What You Can't Refund
Certain payments can't be refunded through the normal flow:
- Payments older than 30-90 days (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 ConnectIPS) 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.