How do cross-border Open Banking refunds work?
- PSP can invest in refunds “as a service”
- Funds can be securely returned directly to the customer’s bank account
- Faster refunds get shoppers back online faster and more often
The responsibility of setting up the cross-border refund process rests with the PSPs. This often requires finding workarounds and explaining this complexity to each merchant.
Open Banking payments can take the worry out of the refund process by rerouting the refund back the way it came without delay. The immediate refund capability also helps merchants manage cash flow, reduce costs and minimize administrative complexity.
Instant refunds are also proven to increase customer loyalty. In fact, according to Trustly research, 65% of customers say the speed and ease of refund affects where they choose to shop, 95% would be more loyal to a merchant that offered same-day refunds would make them more loyal to a merchant.