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.