Same-day refund
If you refund an order on the same day it was placed, the order will be cancelled, and you won’t receive payment from Zip for that transaction.
Refund on a later date
If you refund an order after the day it was placed, Zip would have already disbursed the funds to you. This means your merchant account will go into arrears (negative balance).
To fix this, the refunded amount (minus merchant service fees) will be withheld from your next disbursement. Once the balance is covered, your regular disbursements will resume.
Example:
If you issue a refund of $100, your account will be $100 in arrears (less the merchant service fees credited back to your account).
If your next order is $20, Zip will not disburse that amount, and your balance will reduce to $80 in arrears.
If your following order is $200, the refunded amount will be cleared, and you’ll receive a $120 disbursement (less merchant service fees), including all orders credited to that refund.
If your sales don’t cover the refunded amount within 30 days, we’ll arrange a direct deposit to balance your account.
Note:
Disbursements are processed at the merchant level. If a branch has an outstanding balance (for example, due to a refunded order), payouts will be paused until that branch has repaid the amount or cleared the arrears via direct deposit.