Refund Guidelines

Use this page to understand the card network's refund processing requirements before you initiate a refund.

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Refunds do not have a universal processing deadline based on the original transaction date. However, requirements vary by card network, and linked refunds can reduce compliance and chargeback risk.

Refund requirements by network

Card network	Refund matching requirement	Key identifier	Timeframe notes	Compliance risk
Mastercard	Matched refunds are important for chargeback disputes, but blind or unlinked credits are not expressly prohibited.	Trace ID or TLID	No specific time limit relative to the original sale date. Credits cleared 5 or more calendar days after the refund transaction date may be subject to an authorization-related chargeback.	Unlinked credits can create fraud monitoring exposure, double-credit risk, and narrow reversal windows.
Visa	Refunds must be linked to the original transaction.	Transaction ID	No additional timeframe requirement is stated on this page.	Unlinked refunds may be marked "Out of Compliance."
Discover	The acquirer must pass the transaction ID through to the Discover network.	Transaction ID	No additional timeframe requirement is stated on this page.	Missing transaction IDs may create processing or compliance issues.
American Express	Credits are tied to the original sale parameters through the Authorization on Credit functionality.	Original sale parameters	The refund amount must be equal to or less than the original transaction amount.	Credits that do not match the original sale parameters may not meet American Express requirements.

Mastercard refund processing requirements

Mastercard requirements focus on how refunds are matched during chargeback review and how credits are cleared.

Use matched or linked refunds when identifiers are available. Mastercard requires issuers to verify that a refund corresponds to the disputed purchase before processing a chargeback. This verification is typically done using the Trace ID (DE 48, subelement 63) or the TLID (DE 105, subelement 002, effective June 2, 2026).
Provide documentation when identifiers are missing. If neither identifier is available, issuers may still apply the refund to any transaction with the same merchant name when appropriate documentation is available.
Use blind or unlinked credits only when supported. Mastercard does not expressly prohibit blind or unlinked credits. They are allowed when identifiers are missing, when the refund is applied to a different transaction with supporting documentation, when the credit is issued through MoneySend to a new card, or when the refund is settled outside the network, such as by cash, check, or in-store credit.
Understand credit authorization behaviour. Mastercard authorization supports, but does not require, merchants to authorize a refund using Processing Code 20. No approval code is needed for the refund to clear. Acquirers are required to support and respond to these authorization requests when submitted.
Monitor refund clearing timing. There is no specific time limit for processing a refund relative to the original sale date. However, credits cleared 5 or more calendar days after the refund transaction date may be subject to an authorization-related chargeback.

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"Credit Not Processed" chargebacks are limited to 365–540 calendar days from the date of the original settlement or delivery.

Original transaction reference

Providing the original transaction reference is not required for Mastercard credits. Credits are specifically exempt from Trace ID requirements in both dual message clearing and U.S. interchange programs.

Matched refunds are primarily important in chargeback disputes rather than as a strict processing requirement. Unlinked credits are allowed, but they carry compliance risks, including exposure to fraud monitoring, double-credit risk, and narrow reversal windows.

Visa refund processing requirements

Visa requires refunds to be linked to the original transaction using the Transaction ID.

If a refund is not linked to the original transaction, the transaction may be marked "Out of Compliance."

Discover refund processing requirements

Discover requires the acquirer to pass the transaction ID through to the Discover network.

American Express refund processing requirements

American Express uses Authorization on Credit functionality, which requires a matched refund scenario. The refund amount must be equal to or less than the original transaction amount, and the credit must be tied to the original sale's parameters.