# Refunds

> Refund paid sessions and invoice.

Section: Accepting Payments
Source: https://coincircuit.io/docs/guides/refunds/
Interactive version: https://coincircuit.io/api-reference?tab=guides&guide=refunds

## API reference

- POST `/api/v1/refunds/session/{sessionReference}`: [Refund a payment](https://coincircuit.io/api-reference/#tag/refunds/POST/api/v1/refunds/session/{sessionReference})
- POST `/api/v1/refunds/invoice/{invoiceReference}`: [Refund an invoice](https://coincircuit.io/api-reference/#tag/refunds/POST/api/v1/refunds/invoice/{invoiceReference})
- GET `/api/v1/refunds`: [List refunds](https://coincircuit.io/api-reference/#tag/refunds/GET/api/v1/refunds)

A refund returns crypto to a customer for a payment or invoice they already made. CoinCircuit already knows the original amount and asset, so you only give the wallet address to send it to. The refund settles on the blockchain, and a webhook confirms when the customer has the funds. It comes out of your settled balance, except for a refund of an underpayment you never accepted, which is not debited because those funds were never credited there.

![CoinCircuit refund — original payment and refund amount](https://coincircuit.io/images/features/refunds.webp)

## How it works
1. Estimate the cost with `GET /api/v1/refunds/estimate/{reference}?entity=session|invoice`. The estimate includes network fees.
2. Refund a session with `POST /api/v1/refunds/session/{sessionReference}`, or an invoice with `POST /api/v1/refunds/invoice/{invoiceReference}`.
3. Track status with `GET /api/v1/refunds` and `GET /api/v1/refunds/{id}`.

## Request fields
| Field | Type | Required | Description |
| :--- | :--- | :--- | :--- |
| `refundAddress` | string | Yes | Customer wallet address that receives the refund. |
| `reason` | string | No | Reason for the refund. |
| `feePaidBy` | string | No | Who pays the network fee: `merchant` or `customer`. Defaults to your merchant settings. |

## Webhook events
| Event | Sent when |
| :--- | :--- |
| `refund.created` | The refund is initiated. |
| `refund.success` | The refund is confirmed on-chain. |
| `refund.failed` | The refund could not be completed. |

## Use cases
- Cancelled orders and returns
- Overpayments and duplicate charges
- Dispute resolution and goodwill credits

> Refunds are paid from your balance. Run the estimate first to see the net cost, including network fees.