In the world of online shopping, returns are inevitable: a CTT Express study found that 57% of Spanish consumers who bought via the web in 2024 processed at least one return. If we consider that, in that same year, card payments accounted for 64.2% of purchases made with instruments other than cash in Spain, it is reasonable to expect that a significant share of those transactions involved card refunds.

Managing reimbursements correctly is of utmost importance to companies for several reasons. On the one hand, it helps address common problems, such as fraudulent claims; on the other, handling them on time promotes buyer satisfaction and avoids penalties for noncompliance with the refund deadline.

To help you improve the refund process for card payments in your business, this guide describes, step by step, the workflow and timeframes established by Spanish regulations.

What’s in this article?

• How refunds work for card payments in Spain
  
• Difference between refunds and chargebacks
  
• Timeframes and customer rights in the refund of a payment
  
• How Stripe lets you simplify card payment refunds
  
• FAQs about refunding a card payment in Spain
  

How refunds work for card payments in Spain

Mastercard’s Economic Outlook 2024 report notes that the percentage of sales in Spain that led to a return claim increased by almost 10 percentage points over 5 years, rising from 15.2% to 25%. For your business, this data shows how frequently you are likely to need to handle card payment refunds. The following steps outline what to do:

Evaluating the request

First, make sure the customer’s return request is justified, whether it’s because they received a faulty item or an incomplete order—two of the most common reasons for purchase returns in the country—or because of a provision in your business’s buying conditions. At this stage, it is key to monitor potential fraud attempts, such as duplicate claims or photographs of a defective product whose serial number does not match the goods sent.

Verifying the transaction

If you determine that the request is valid, locate the transaction using the information provided by the customer, such as the order number, date, or amount. Next, verify that the charge matches the order and that no other return or refund process is underway.

Refunding the amount

After revoking access to the web service, taking delivery of the returned product, and inspecting its condition, refund the customer the amount due. In some cases, a partial refund will need to be issued to the buyer, for example, if the return affects only one item in the purchase.

When issuing a credit by card, the steps change depending on whether it was a face-to-face or online payment:

Refund of an in-person card payment

If the payment was processed with a card terminal, locate the transaction number on the sales receipt, access the point-of-sale (POS) system, and use the refund function. As a general rule, reimbursements can be handled directly from the sale history. Still, sometimes the customer must swipe or insert the card after entering the sum at the terminal. Next, the device sends the refund order to the financial institution that holds the business’s account, which then transfers the funds to the customer’s account.

Refund of an online card payment

If a virtual terminal or payment gateway handles the sale, access the system and locate it using its identifier. Next, use the refund function and specify whether the reimbursement will be complete or partial. Before accepting the transaction, check that the data is correct. Lastly, authorize the sale so the customer receives a refund for the card payment: most systems return the amount to the buyer’s account within 10 days.

Difference between refunds and chargebacks

Refunds and chargebacks are methods for returning money to the buyer, but they differ in who initiates the action and the steps involved. Let’s take a look at how to differentiate the two concepts:

• Refunds: Refunds take place when the customer asks for a reimbursement of an amount directly from the business.
  
• Chargebacks: Chargebacks, on the other hand, occur when the buyer initiates a dispute directly with their bank or payment service provider, either without having contacted the seller or after an unsatisfactory initial communication.
  

Although these workflows are very different, they can originate from the same reasons: receiving a defective product, getting an order that is late, incomplete, or incorrect, or simply changing their mind. The refund process is usually concluded without dispute. However, it is important to know what happens if a chargeback occurs.

What happens if a chargeback occurs

Chargebacks can occur before a return claim, especially when bad faith is suspected. According to the merchants who participated in the 2025 Global Chargebacks Outlook—Mastercard’s study on the state of dispute-based reversals—45% of chargebacks were fraudulent.

Despite this risk, most are not related to fraudulent transactions but rather to incidents such as duplicate charges and breaches of purchase conditions. No matter the reason, the card provider or the customer’s bank cancels the charge, withdraws the funds from your account, and holds the sum while it reviews the claim. If it deems it to be valid, it returns the funds to the consumer. At this point, you can initiate representment to dispute the charge if you disagree with the decision. If the outcome favors the customer, you could request arbitration and wait for the card networks to render a final ruling.

Timeframes and customer rights in the refund of a payment

The time limit for returning funds for a card payment and the customer’s rights vary depending on the reason for processing the refund request. Below are some of the most common situations and the criteria established by regulations for each:

Not receiving an order or receiving it incomplete

Stockouts and logistical problems often trigger return claims. If a buyer does not receive an order, they can ask for a full refund. If it arrives incomplete, they have two options: request shipment of the remaining products or a partial credit. Per the third edition of the study “The Digital Consumer in Spain” (which includes data from 2020 to 2024), almost 17% of complaints in 2024 were due to incomplete or incorrect shipments.

Article 76 of Royal Legislative Decree 1/2007 establishes a legal window of 14 days for the company to refund the card payment; this timeframe begins when the customer informs the company of their intention to cancel the sales contract (whether due to not getting the order, it arriving incomplete, or any other reason).

Receiving a defective product

Some problems, such as a manufacturing defect or damage during transport, might render the delivered item defective. A survey by the Organization of Consumers and Users (OCU) found that 8% of products purchased in 2023 and 2024 arrived at their destination damaged or broken.

If a customer receives a faulty product, they can choose between replacement and repair. Nevertheless, if these measures are not applied (because they are unfeasible or insufficient to resolve the problem), the consumer might demand termination of the contract in accordance with Article 119 of Royal Legislative Decree 1/2007. In that case, the company must return the funds upon receiving the item or proof of its return.

Exercising the right of withdrawal

A buyer can request a refund for a card payment by exercising their right of withdrawal, which allows consumers to cancel, in whole or in part, a purchase or contract made remotely or outside a physical store. The General Law for the Defense of Consumers and Users sets out the rules and, under Article 107, requires the company to issue the credit within 14 days of receiving the customer’s communication. This period is extended to 12 months if the company does not clearly indicate the refund timeframe.

In any case, the business will have to fully reimburse the card payment amount, including the initial shipping costs, before the end of that legal window. In addition, it will have to bear the cost of the cheapest shipping option to take delivery of the returned item.

Unlike online purchases, the right of withdrawal does not apply in physical stores. That said, most brick-and-mortars offer their own return policies, whose deadlines can vary. Irrespective of these policies, businesses must guarantee consumer rights in cases regulated by law, such as when a product has a defect during the three-year warranty period, allowing for a refund of a card transaction.

How Stripe lets you simplify card payment refunds

Stripe is a financial platform used by millions of businesses worldwide: from new startups to large enterprises operating internationally. With Stripe Payments, you can easily accept purchases from customers in 195 countries with over 125 payment methods and take advantage of no-code solutions to protect yourself against fraud and improve authorization rates. Furthermore, it lets you issue refunds quickly from your Dashboard in a few simple steps:

• Identify the payment: Find the order you want to reverse to your customer in your control panel and click on “Refund payment.”

• Enter the refund amount: By default, the system returns the full total paid by card, but you can enter the exact amount to issue a partial refund.

• Confirm the refund: Specify the reason, then press the “Refund” button to start the process.

Beyond simplifying card payment refunds with an intuitive interface, Stripe also lets you automate the delivery of refund receipts to inform customers that you have issued the reimbursement. The system automatically sends an email to the consumer’s entered email address during checkout. This way, the buyer will know the credit is on its way and will appear in their account within 5 to 10 days.

FAQs about refunding a card payment in Spain

Can a customer request a refund to a card if they paid by a different method?

By default, the refund is returned to the original payment method. A different option applies only when both the customer and the business agree. In any case, the company cannot use any surcharge regardless of the method chosen by the consumer.

Are there any additional steps to take after refunding a card payment?

If a card payment tied to an invoice transaction is refunded, the company must issue a corrective invoice in line with Article 15 of Royal Decree 1619/2012. This document records the return of a purchase. It must be issued whenever there is a change to the tax base, meaning the amount used to calculate the VAT on the sale. Card reimbursements require this step because the sum shown on the original invoice differs from the sum the customer ultimately pays. The corrective invoice must contain, among other things, the negative amount of the card transaction refunded to the buyer.

Is the company required to refund a card payment before receiving the returned product?

No, the company has the right to withhold the credit until it takes delivery of the item or until the customer proves that they have returned it (in accordance with Section 3 of Article 107 of the law governing the right of withdrawal). Spanish companies generally prefer the first option, since upon receiving the product, they can check it and thus avoid certain types of refund fraud.