Tips to prevent fraudulent refund requests by verifying card details and using referenced refunds only.
From time to time, businesses may receive calls from individuals claiming to be representatives of a bank, payment provider, or POS support team. These callers might request that staff process a refund to a card provided over the phone.
To keep your business and funds secure, it’s important to understand how to handle refund requests safely.
Why This Matters
An unreferenced refund (a refund not linked to an original transaction) can move money directly from your business to another card.
Once processed, these funds are very difficult to recover, so it’s essential that your team verifies all refund requests carefully.
Best Practices for Safe Refunds
1. Verify the Person Receiving the Refund
Before processing any refund:
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Confirm identity: Ask to see both the payment card and matching photo ID in person, if necessary.
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Check the card details: Confirm the last four digits of the card match the card used in the original transaction, from the device transaction history or you Merchant portal.
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Avoid phone refunds: If someone calls requesting a refund, advise them to process any refunds in-store or via the original payment method.
- Passcodes: Share refund passcodes with limited and trusted staff members only.
💡 Processing refunds in person allows staff to confirm who is receiving the funds and helps prevent fraudulent activity.
2. Use referenced refunds only
When refunding a transaction:
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Locate the original sale in your POS or payment device under transaction history.
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You can only perform a full refund on the payment terminal via transaction history. Partial refunds maybe processed on the POS device or Oolio Pay merchant portal.
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Confirm that the refund is linked to the original transaction, by verifying the customer is using the same card they used for the original transaction by checking the last four digits.
This ensures accuracy and minimises the risk of funds being sent to an unauthorised card.
What to Remember
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Oolio and Adyen will never call a store to request a refund.
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If you receive such a request, do not process it. Instead, note the details and report it to your manager or the Support Team.
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Always process refunds through verified channels and link them to the original transaction whenever possible.
Need Assistance?
If you’d like help setting up safer refund practices or want to review your POS refund procedures, our support team can assist.
We’re here to help you keep your business and transactions secure.