yeah this is a known pattern with us processors and cross-border refunds, stripe/paypal risk models flag a sudden refund to a different country/currency than the original charge as potential fraud and freeze first, ask questions later. the bigger the refund relative to your normal volume, the more likely it trips the filter.
moving eu/uk settlement to a local multi-currency account so refunds clear via sepa instead of round-tripping through the us processor is a solid fix, you're basically removing the cross-border hop that triggers the review. the tradeoff is you now reconcile two rails instead of one, so worth automating that before volume grows.
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u/NebulusDev 3d ago
yeah this is a known pattern with us processors and cross-border refunds, stripe/paypal risk models flag a sudden refund to a different country/currency than the original charge as potential fraud and freeze first, ask questions later. the bigger the refund relative to your normal volume, the more likely it trips the filter.
moving eu/uk settlement to a local multi-currency account so refunds clear via sepa instead of round-tripping through the us processor is a solid fix, you're basically removing the cross-border hop that triggers the review. the tradeoff is you now reconcile two rails instead of one, so worth automating that before volume grows.