> ## Documentation Index > Fetch the complete documentation index at: https://docs.vortexiq.ai/llms.txt > Use this file to discover all available pages before exploring further. # Refund Rate, Authorize.net > Refund Rate for Authorize.net stores. Tracked live in Vortex IQ Nerve Centre. How to read it, why it matters, and how to act on it. **Metrics type:** [Supporting Metrics](/nerve-centre/overview#metrics-types-explained) • **Category:** [Payment Gateway](/nerve-centre/connectors#connectors-by-type) ## At a glance > The percentage of Authorize.Net revenue refunded to customers in the period. Merchant-initiated returns view (separate from chargebacks). High refund rates flag product quality, fulfilment, or B2B-return-policy issues. | | | | -------------------------- | --------------------------------------------------------------------------------------------------------------------------------------- | | **What it counts** | `SUM(refund.settleAmount) / SUM(sale.settleAmount WHERE status=settledSuccessfully) * 100`, both in USD. | | **API endpoint** | `getTransactionListRequest` filtered to `transactionType = refundTransaction` for the numerator; full settled list for the denominator. | | **Currency** | USD-dominant; multi-currency rendered per-currency. | | **Refunds counted** | Both full and partial. A 30% partial refund of USD 100 contributes USD 30 to numerator. | | **Refund timing** | Issue-date attribution. A refund issued today against a March sale lands in today's window denominator (paired with today's revenue). | | **Disputes / chargebacks** | NOT counted here. Tracked in [`aut_chargeback_rate`](/nerve-centre/kpi-cards/authorize-net/chargeback-rate). | | **Failed payments** | Excluded (post-success only). | | **Voided pre-settlement** | Not a refund (the original capture was cancelled before settlement); excluded. | | **B2B vs B2C** | B2B returns typically 1 to 5% (procurement-managed); B2C consumer 4 to 15% depending on vertical. | | **Time window** | `30D vsP`. | | **Alert trigger** | `>8%` absolute, OR `+25%` relative spike. | | **Sentiment key** | `gauge_inverse: good<=3, warn>8` | | **Roles** | owner, operations, finance | ## Calculation Calculated automatically from your Authorize.net data. See the At a glance summary above for what the metric tracks and the worked example below for a typical reading. ## Worked example "Heartland Hardware Co.", 30 days ending 02 May 26. | Channel | Revenue | Refunds | Refund rate | | ------------- | ----------------- | -------------- | ----------- | | Web checkout | USD 412,800 | USD 12,400 | 3.0% | | B2B portal | USD 1,142,000 | USD 4,800 | 0.4% | | ARB recurring | USD 92,400 | USD 0 | 0.0% | | MOTO phone | USD 218,600 | USD 1,700 | 0.8% | | **Blended** | **USD 1,865,800** | **USD 18,900** | **1.0%** | What the merchant should notice: 1. **Blended 1.0% is healthy for a B2B-heavy distributor.** Industrial supply: typical 0.8 to 2.5%. Below 0.5% suggests too-strict no-returns policy (blocking legitimate returns and creating chargeback risk); above 4% suggests product quality or fulfilment issue. 2. **B2B portal at 0.4% reflects procurement discipline.** Buyers know what they ordered; returns are rare, usually wrong-part-shipped fulfilment errors. 3. **Web checkout at 3.0% is the drag.** Likely causes: consumer-DIY orders with sizing or compatibility mistakes (wrong fitting, wrong gauge wire). Action: improve product page diagrams, add "fit guide" on key SKUs. 4. **ARB at 0% is correct.** Maintenance contract subscriptions don't refund; cancellations stop future rebills but don't refund past ones (unless customer disputes). 5. **A 1pp jump in refund rate on USD 1.87M revenue = USD 18,700 less monthly net.** On Heartland's volume, every percentage-point of refund rate is roughly USD 19,000. Quick-win: top 3 refunded SKUs typically drive 50 to 70% of the volume; fix those. ## Sibling cards merchants should reference together | Card | Why pair it with Refund Rate | | ------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------- | | [`aut_refund_volume`](/nerve-centre/kpi-cards/authorize-net/refund-volume) | The absolute amount; this card is the rate. | | [`aut_total_volume`](/nerve-centre/kpi-cards/authorize-net/total-volume) | The denominator. | | [`aut_chargeback_rate`](/nerve-centre/kpi-cards/authorize-net/chargeback-rate) | Buyer-initiated cousin. | | [`aut_dispute_rate`](/nerve-centre/kpi-cards/authorize-net/dispute-rate) | Disputes-in-flight. | | Stripe [`stripe_refund_rate`](/nerve-centre/kpi-cards/stripe/refund-rate) / PayPal [`pp_refund_rate`](/nerve-centre/kpi-cards/paypal/refund-rate) | Cross-PSP comparison. | ## Reconciling against the vendor's own dashboard **Where to look in the Authorize.Net Dashboard:** [account.authorize.net](https://account.authorize.net) → **Reports → Transaction Statistics**, filter `transactionType = refundTransaction`. Sum of refunds divided by sum of settled gives the rate. **Why our number may differ:** | Reason | Direction | Why | | ---------------------------- | ----------------- | ------------------------------------------------------------------------------------ | | **Refund attribution date** | Either | We use issue-date in the window denominator; some Dashboards use original-sale-date. | | **Partial-refund inclusion** | Both include them | But timing across month-boundaries can drift. | | **Time zone** | Boundary days off | Pacific batch cut-off vs UTC. | **Cross-connector reconciliation:** | Comparison | Expected | Why | | --------------------------------------------------------------------------------------------- | --------------------- | ------------------------------------------------ | | `aut_refund_rate` ↔ commerce-platform refund rate | Within +/-2pp | Commerce includes non-Authorize.Net-paid orders. | | `aut_refund_rate` ↔ [`stripe.stripe_refund_rate`](/nerve-centre/kpi-cards/stripe/refund-rate) | Differ by traffic mix | Different baskets per PSP. | ## Known limitations / merchant FAQs **What's a healthy refund rate?** Vertical-dependent. B2B distribution: 0.5 to 2.5%. Consumer DIY: 2 to 6%. Apparel/fashion (rare on Authorize.Net): 8 to 15%. Subscription SaaS: \<1%. Anything 50% above your trailing 90-day average warrants investigation regardless of vertical. **Refund vs chargeback?** A refund is *merchant-initiated*; the merchant decides to return funds via `createTransactionRequest` with `transactionType = refundTransaction`. A chargeback is *buyer-initiated* through their issuing bank, regulated by Visa/Mastercard rules, and incurs scheme fees (USD 15 to 25 per case) plus held funds during dispute. High refund rate often *prevents* chargebacks because customers refunded promptly don't escalate. **Partial refunds, how counted?** Both numerator and denominator are partial-aware. A 30% refund of USD 100 contributes USD 30 to the numerator; the original USD 100 still counts in the denominator. **My refund rate jumped 50% in a week, where to look?** (1) Top SKUs returned (commerce-platform Returns view). 1 to 3 SKUs typically drive 50 to 70%. (2) Recent product launches with quality issues. (3) Sizing or spec mismatch after photo or copy changes. (4) Shipping delays causing "didn't arrive in time" returns. (5) For B2B: a wrong-part-shipped fulfilment incident. **Does Authorize.Net charge me for refunds?** The gateway typically charges a USD 0.10 to 0.25 per-refund processing fee, on top of the original transaction's gateway fee (which is NOT refunded). The acquirer's interchange and discount-rate on the original sale are also NOT refunded; that's a hidden cost of high refund rates. **Is recurring rebill cancellation counted as a refund?** Only if you actively refund a charged rebill via `refundTransaction`. Cancelling a future ARB rebill (no money moves) is not a refund. **Refund window after sale, how long?** Authorize.Net allows refunds up to 120 days from the original transaction date. After 120 days, the only option is an "unlinked refund" (a credit transaction not tied to original) which most acquirers restrict heavily for chargeback-protection reasons. **B2B partial returns, common?** Yes. A B2B customer ordering a USD 5,000 mixed pallet often returns one specific item; partial refunds of 2 to 8% of the original amount are normal in industrial distribution. **Visa ownership of Authorize.Net, refund mechanics changed?** No. Refund mechanics are unchanged. *** ### Tracked live in Vortex IQ Nerve Centre *Refund Rate* is one of hundreds of KPI pulses Vortex IQ tracks across Authorize.net and 70+ other ecommerce connectors. Nerve Centre runs the detection layer; Vortex Mind investigates the cause when something moves; Ask Viq lets you interrogate any number in plain English. 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