Refunds

Automatic Refunds for Failed Disbursements

If a disbursement request fails, you will be automatically refunded the full amount of the disbursement (amount + fees) to your Nkwa Pay account balance. This ensures that no funds are lost due to failed transactions.

Refund Process

The refund process follows these steps:

  1. Failed Transaction: When a disbursement fails due to reasons such as invalid phone numbers, network issues, or recipient account restrictions
  2. Automatic Detection: Nkwa Pay automatically detects the failed transaction
  3. Account Credit: The full amount (including any transaction fees) is credited back to your Nkwa Pay account balance
  4. Notification: You will be notified of the refund

Refund Timeline

Refunds are typically processed immediately when the system receives a failed status from the Mobile Network Operator (MNO). However, in cases where the MNO systems experience degradation, reconciliation might take longer (usually within 24-48 hours).

Refund Scenarios

Common scenarios that may trigger automatic refunds include:

  • Invalid recipient phone number
  • Recipient’s mobile money account is inactive or restricted
  • MNO service disruption during the disbursement process
  • Recipient’s account exceeding maximum balance limits
  • Regulatory restrictions on the recipient’s account

Checking Refund Status

You can check if a refund has been processed by:

  1. Monitoring your webhook endpoint for payment status updates
  2. Using the Get payment endpoint to check the status of the original disbursement
  3. Reviewing your account balance and transaction history in the Nkwa Pay dashboard

Best Practices

  • Maintain accurate records of all disbursement attempts for reconciliation
  • Implement proper error handling in your application to detect and process failed disbursements
  • Configure webhooks to receive real-time notifications about payment status changes
  • Validate recipient phone numbers before initiating disbursements to reduce failures

For more information about disbursements, please refer to our Disbursement Guide.