Refunds and Credit Notes
Two supports full and partial refunds. When a refund is processed, a credit note is generated so accounting and tax records stay consistent.
Refund Methods
- Integration forwards refunds automatically to Two.
- Backend calls Two’s refund API directly.
- Merchant processes refunds manually in Merchant Portal.
Use one source of truth per refund flow to avoid duplicate refunds.
Full and Partial Refunds
Full refund
- Credits the full invoiced amount.
- Reverses VAT for the full amount.
- Issues a full credit note.
Partial refund
- Refunds only selected amounts or line items.
- Recalculates VAT proportionally.
- Issues a partial credit note.
Settlement Impact
Refund before payout
- Refunded amount is removed before settlement disbursement.
Refund after payout
- Refunded amount is netted from future payouts.
- Settlement reports show deductions for reconciliation.
API Integration Notes
Refund endpoint:
POST /v1/order/{order_id}/refund
Integration recommendations:
- Send exact monetary values and currency.
- Include line item context for partial refunds where possible.
- Keep refund totals and line-item totals consistent.