> ## Documentation Index
> Fetch the complete documentation index at: https://docs.mynkwa.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Refunds

> Understand how refunds work with Nkwa Pay's mobile money payment processing system.

# 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](/api-reference/endpoint/nkwapay/get) 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](/nkwapay/disbursement).