What is Refund?
A refund is money paid back to a customer for a returned item or a cancelled order.
Updated
Meaning
English
A refund is money paid back to a customer for a returned item or a cancelled order.
Roman Urdu
Refund matlab wapas kiye gaye saman ya cancel order ke paise gahak ko lautana.
Also called money back, paise wapas.
Example
An online customer cancels a COD order after it was paid by bank transfer. The store refunds the amount to the same account and keeps the transfer reference with the order.
How it works
A refund is the money half of a return. The safest rule is to refund the same way the customer paid: cash for cash, wallet for wallet, and a khata adjustment for a sale on credit. Mixing them causes trouble: a cash refund for a JazzCash sale makes the drawer short, and a cash refund for an udhaar sale pays out money the shop never received.
Refunds are also a common way for cash to leak. Many shops require a manager's approval for any refund and review the day's refunds at closing, along with voids and large discounts.
In Nafaa
Refunds in Nafaa are made through a return against the original bill, and only staff with the returns permission can make them. The return records how the money went back, and the cash register counts only cash actually handed out.
Related terms
- Sales Return
A sales return is goods coming back from a customer after a sale, with the stock put back and the money refunded, adjusted in khata or exchanged.
- Void (Bill Void)
To void a bill is to cancel a completed sale so it no longer counts, while keeping a record that it existed and who cancelled it.
- Chargeback
A chargeback is when a card payment is reversed by the customer's bank after the customer disputes it, and the money is taken back from the merchant.
- Credit Note
A credit note is a document a seller issues to reduce what a buyer owes, usually because goods were returned or an invoice was overcharged.