How do refunds work?

Refunds are applied starting with the last payment, working backwards to earlier ones. Once the merchant has issued the refund to Smartpay, this will immediately be reflected on your Smartpay account. Any funds will be transferred back to the card that was used to pay. Your card issuer and bank may take up to 10 business days to process this amount.

Full refunds

If you have returned an order in its entirety and/or the merchant decided to refund you the full amount of your order, any upcoming payments will be canceled, and any payments you already made will be refunded back to the card you used to pay.

Partial refunds

The same principle applies for partial refunds: upcoming payments will be canceled first, starting from the last one. Any leftover amount will then be refunded to the card that was used to pay.

Let's look at the below example to give you an idea of how this works.

Your order amounted to ¥6,000, and the first payment of ¥2,000 was made at time of purchase.

The original payment schedule looked like as follows:

Order¥6,000Status
First payment¥2,000Paid
Second payment¥2,000Due in 4 weeks
Third payment¥2,000Due in 8 weeks

Prior to the second payment, a refund of ¥5,000 is done. When this refund is processed, the second and third payments get cancelled. Additionally, the first payment will be adjusted to ¥1,000 and the ¥1,000 balance gets refunded back to the original card used for the payment.

The payment schedule after the ¥5,000 refund looks as follows:

Order¥6,000Status
First payment¥2,000Adjusted to ¥1,000 & refunded ¥1,000 back
Second payment¥2,000Cancelled
Third payment¥2,000Cancelled