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How to issue a refund
Business advice

How to issue a refund

29 July 2021

5 min read

Knowing how to issue a refund is part-and-parcel of running a business and can help keep customers happy. In this guide, we’ll look at how the refunds process works on your Tyl POS system (fees and eligibility criteria apply) so that you can reimburse your customers quickly and easily when needed.

When to issue a refund

You are legally obliged to offer a full refund if a customer returns an item that is faulty, not as described, or unfit for purpose. Under the Consumer Rights Act 2015, a customer has 30 days in which they can claim a full refund on most faulty products. There are some exceptions, like digital content where you have the opportunity to repair or replace the product within 30 days before issuing a refund is mandatory. You should always do your homework on which digital products might be eligible for a refund. Citizens Advice provides a summary on how refunds work for different types of digital content.

Once the 30-day right to a refund has elapsed, the customer can ask for a replacement or repair within the first six months of the sale, unless you can prove the item was in good working order when it was sold. If there are reasonable grounds for the product being faulty, you would only need to issue a full refund if your attempts at a repair or replacement haven’t worked. After six months, the responsibility shifts to the customer, who then has to prove the product was faulty at the point of sale if they want a refund.

In situations where a dispute has arisen, a customer’s attempts to obtain a refund may escalate to the small claims court or Trading Standards.

How to issue a refund on the Clover Flex

The Clover Flex is one of the great all-rounders of the card machine kingdom, and we hope you’ll agree that it’s a breeze when it comes to refunding money.

Watch our video to find out how to refund your customers using the Clover Flex, or alternatively, read our quick guide below.

Select the ‘refund’ app from your home screen.

Enter the amount – it could be a full or partial refund – or select ‘past payments’ to choose the transaction you wish to refund.

To create a receipt – whether printed, SMS or an email receipt – click ‘receipts’, which you’ll find in the section titled ‘refund detail’.

If you need to make a cash refund, open the ‘refund’ app and either enter an amount or select the ‘look up past payment’ option. It’s important that you (or authorised staff) keep hold of the payment terminal when issuing cash refunds; sadly, there are examples of refund fraud, which we cover in our guide to fraud, among other security issues.

If you have any concerns about taking cash payments, you can disable cash sales on your Clover Flex by opening apps, selecting ‘setup’, then ‘payments’, and under ‘tenders accepted’, you can untick ‘cash’, then save your changes.

How do I issue a refund on my Ingenico?

If you have an Ingenico card machine, here is a basic summary of how to reimburse a customer on a device such as the Ingenico Move 3500, for example.

On the home screen, click the ‘refund’ button.

Enter your supervisor admin passcode. This will have been sent to you in your original terminal activation email, but if you can’t locate it, you can call the Tyl helpdesk on 0330 173 5113.

Enter the refund amount.

Insert or present the customer’s card.

Complete the refund and ask the cardholder if they would like a receipt printed. Select yes or no, and then the Ingenico card machine will print the merchant receipt for you to retain for your records.

It’s important to note that our Ingenico card machines cannot print additional transaction receipts for previous transactions, apart from the most recent one.

Refunding online or telephone sales

You may already know that Tyl can help you take payments by telephone or online, but what are the rules around the refund process when it comes to ‘distance selling’?

Under the Consumer Contracts Regulations, your customers have the right to a refund, regardless of whether a product is faulty, if they tell you within 14 days of receiving the goods that they wish to cancel. At this point, they have another 14 days to return the product. They’re not obliged to give you a reason, and you’ll need to refund the customer within 14 days of the goods arriving back to you.

Writing a refund policy

Having a refund or returns policy can give your customers clarity about how to engage with your company if they need to send back an item and request a refund. Publishing clear information on your website could help you earn the trust of new customers, and retain loyal customers in the long-run, even if they return an item in the short-term.

You may wish to give your customers resources, such as auto-generated shipping labels, and give prompt updates following correspondence. Without a refund policy in place, there could be a greater risk of negative online feedback, which might impact sales further down the line.

Discover Tyl Talks

Over at Tyl Talks, we’ve got plenty more ‘how to’ business guides where that came from. Take a peek!

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How to take payments by link.


This has been prepared by Tyl by NatWest for informational purposes only and should not be treated as advice or a recommendation. There may be other considerations relevant to you and your business so you should undertake your own independent research.

Tyl by NatWest makes no representation, warranty, undertaking or assurance (express or implied) with respect to the adequacy, accuracy, completeness, or reasonableness of the information provided.

Tyl by NatWest accepts no liability for any direct, indirect, or consequential losses (in contract, tort or otherwise) arising from the use of the information contained herein. However, this shall not restrict, exclude, or limit any duty or liability to any person under any applicable laws or regulations of any jurisdiction which may not be lawfully disclaimed.

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