If you’re expecting a refund or reversal, here’s everything you need to know about how refunds and reversals work:
What is a Refund?
A Refund is when a merchant credits your account for a completed, or settled, transaction. This usually happens when:
You return a product.
A service you paid for is cancelled or not delivered.
Refunds will credit either the full amount or a partial AED amount of the original transaction, depending on what the merchant is refunding.
Refund Timelines
Refunds are initiated by the merchant, so the processing time can vary. Typically, it takes 5-7 business days for your refund to be issued after being confirmed by the merchant. However, depending on the merchant, it could take up to 30 days.
If you’re expecting a refund and it hasn’t appeared on your account yet, it’s a good idea to reach out to the merchant for an update. If they don't cooperate, reach out to our Customer Team and we'll do our best to support you.
When it comes to international transactions, it’s important to know that not all fees are fully refunded. This is due to the processing costs involved. Here’s how it works:
Refund Amount: You will receive in your Primary Wallet the AED equivalent of the amount being refunded by the merchant.
Cashback: If you earned cashback on the transaction, don’t worry — it’s already been credited to your account and won’t be affected.
Fees: The fees charged on the original transaction are non-refundable and are used towards covering the network costs of processing international transactions and refunds.
What is a Reversal?
A reversal, on the other hand, happens when a transaction is cancelled before it is completed. For instance:
If a payment authorisation fails.
If the merchant voids the transaction before debiting your account.
Reversals do not involve the movement of funds because the transaction was never settled.
Alaan does not have the power to trigger the Reversal or the Refund of a payment.