This means there is not enough available balance on your merchant account to process the refund.
To increase the available balance you can do the following:
- Configure a Refund Reserve to prevent these funds from being paid out. To do this, go to the Adyen Customer Area >> select your merchant account >> select Finance >> select Balance overview >> select "configure Refund Reserve".
- Transfer funds to our bank account (instructions here) to fill the configured Refund Reserve or top-up the available balance on your account.
- Enable the AutoFunding functionality: a direct debit payment will be automatically initiated when the reserve balance is less than the configured value. The difference in the balance and the configured value will be directly debited from the your bank account. Adyen supports direct debit payments in the US (ACH), UK (BACS), and the Eurozone (SEPA). An additional document has to be signed before Autofunding can be enabled. Contact Adyen Support to enable this.
For an overview of all refunds that were not processed due to
insufficient balance, select Finance >> See all charts and exports >> Other >> Modifications not Processed report (data is available from March 31 onwards).
Adyen does not automatically retry refund requests that failed due to insufficient in-process funds. Merchants will need to resubmit any failed refund request once enough funds are available again.