Usually, this happens in case the cardholder's account is incapable of accepting the refund.
The most common reasons for refund getting declined are:
- Refunds are not supported by the card account(certain prepaid cards, etc.)
- The card account was frozen* due to fraud
- The cardholder closed the card account
- The cardholder has already disputed the transaction
* Might be initiated by both the cardholder and the bank itself.
We recommend offering the cardholder to contact the issuer to clear the situation out.