How long do refunds typically take?
Once the merchant has confirmed they've issued a refund, it will usually appear in your account within 2-3 business days but can take up to 7 business days on occasion. Just a friendly reminder that business days don't include weekends and holidays!
Since your KOHO card is a prepaid card, these refunds are subject to credit card processing times.
Can you speed my refund up for me?
We're not able to see any pending returns or make the refund process faster on our end, but as soon as we receive the funds from the merchant they'll be immediately available in your account ⚡️
Feel free to reach out to our User Success team once it has been more than 7 business days since the merchant processed the refund and we can support you further. We are unable to support you until this waiting period has passed.
Sometimes, merchants will process returns as cancellations. When this happens, it's because the merchant hasn't settled the transaction yet. The merchant will let this authorization (also known as a pending charge or hold) ‘expire’ and once the transaction expires, the funds will automatically return to your account. This can take up to 7 business days, but sometimes it can be sooner.
See more on expired transactions here: I have a transaction that expired, what does that mean?
Why do refund timelines differ?
Several factors contribute to the longer processing times for refunds to prepaid cards. The process involves multiple parties, verification steps, and security measures!
When you use a prepaid card for a purchase, the merchant reserves a certain amount on your card to cover the transaction. If you decide to return the item or need a refund for any reason, the merchant begins the refund process by using their payment system. This action triggers a series of steps to ensure the money gets back to you.
The time it takes for refunds to reach your KOHO card can vary for a few reasons:
Merchant Processing Time: Merchants need some business days to initiate the refund from their side. Some merchants use speedy automated systems, while others might take a bit longer if they have manual processes.
Payment Processor or Acquirer: Often, the merchant's payment processor or acquiring bank handles the refund process. This can introduce an extra layer of processing time before the refund reaches your card.
Prepaid Card Issuer: The company that issued your prepaid card (that's KOHO!) plays a role too. They're responsible for making sure the refunded amount finds its way back to your card correctly.