Refunds & Fee Reversals
How refunds work
- Customer initiates: A buyer requests a refund through the Kapsule platform.
- Vendor approval: You review and approve the refund, or provide evidence if you believe it is not valid.
- Refund issued: Once approved (or mediated by Kapsule), the buyer receives their money back via the original payment method.
- Adjustment recorded: The refunded amount is deducted from your next payout and itemised in your Settlement Report.
“Refunds protect customer trust, but they also protect vendors by ensuring that fees are reversed fairly.”
Fee reversals explained
When a refund is processed, any commission or platform fees are recalculated:
- Full refund: The entire commission (e.g., 8%) is reversed. You are not charged for sales that did not complete.
- Partial refund: Commission is recalculated based on the final order value. Only the portion of commission linked to the refunded amount is reversed.
- Non-refundable fees: If third-party costs apply (e.g., shipping you’ve already provided), these are not reversed by Kapsule.
Shipping fees you have already paid to a courier are not refunded by Kapsule, even if the order is cancelled.
How refunds appear in your Settlement Report
Refunds and fee reversals are clearly shown in your report:
- Refund ID / Order ID: Links the refund to the original transaction
- Refund amount: The gross value refunded to the customer
- Commission reversal: Shows the adjusted or reversed fee
- Net adjustment: The amount deducted from your upcoming payout
Example scenario
- Product sale price: $100
- Commission (8%): $8
- Buyer returns item → full refund issued
- Customer receives $100 back
- Vendor commission reversal: $8 credited
- Net adjustment: $0 owed by vendor beyond refund
Refunds processed close to a payout day may roll into the following week’s Settlement Report. Always cross-check reports before raising concerns.
FAQs
1. Do I lose commission on refunded orders?
No. Commission is reversed in line with the refunded amount.
2. How long does it take for refunds to show?
Refunds appear in the Vendor Dashboard immediately and are reflected in your next Settlement Report.
3. Are shipping costs refunded?
Not automatically. If you paid for courier services, these costs remain with you unless recoverable from the courier.
4. What if I disagree with a refund request?
You can submit evidence through the platform. Kapsule will mediate and make a final decision.
5. Does a refund affect my payout timing?
No. Payouts continue on schedule, but your Net Payout will be reduced by the refunded amount.
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