Refunds

How does Stripe handle refunds?

Within your Stripe account, you can issue refunds by using the Refunds API or the Stripe Dashboard. The refund is issued against the specific charge (i.e., the transaction), not the invoice. This means that Stripe will only allow you to refund payments that were made using Stripe as the payment processor. When a Stripe invoice is paid via Loop, it is marked as paid_out_of_band. As a result, it is not possible to directly issue a refund via Stripe for a payment that was made in crypto via Loop. You can read more about Stripe refunds here.

What is a Stripe credit note?

For invoices paid via Loop and marked as paid_out_of_band, it is possible to issue credit notes. As the name implies, a credit note is a credit that a customer can use against future payments. For example, if a customer has a $50 credit on their account, and their next upcoming invoice is for $75, the credit will be applied so that the customer is only charged $25. Since Loop ingests the finalized invoice, our system works with Stripe credit notes. If a customer does overpay and or requires some type of refund, we suggest using credit notes so that the customer's future invoice is discounted by the amount of the credit.

What are the implications for Loop + Stripe?

As noted above, Loop works with Stripe credit notes. Since Loop is considered an external payment method by Stripe and invoices paid via Loop are marked as paid_out_of_band, it is not possible to use Stripe's refund functionality.