Cancellation Vs Refund: What’s The Difference?

From time to time, you may need to cancel an order which you have received. In general, we encourage you to use the Send Refund feature rather than cancel. In this document we will explain the difference between the two processes. 

Cancellation

If you need to cancel an order, you can follow the procedure explained in this article: How To Cancel An Order As A Seller. For more information about the cancellation option, please visit here: Types Of Order Cancellations.  

With the new PayPal Payments solution, orders arrive directly as “Payment Received”. It’s important to note that cancellation of the order will not issue a refund automatically. This means that the taxes and fees applied to the order will not be automatically adjusted and refunded to your PayPal account.

Also, note that when you cancel the order, the “Send Refund” option on the order page will be not available at this point. You will need to refund the buyer manually using the original payment method. 

Example cancelled order with the More actions menu open and the unavailable Send Refund option highlighted

Orders that arrived in the status “Buyer Contacted” or “Invoice sent” can be canceled using one of the cancellation options available without any further adjustments. 

If you cancel an order instead of refund please, contact us.  We will assist you in recovering the fees and taxes applied to the order. 

Refund

Sellers have the option to issue a total or a partial refund of the order. For more information on how to issue a refund, review our separate help document: How Do I Refund An Order?

When a seller uses the “Send Refund” option on the order page, the order status  will update accordingly. The buyer will receive their refund directly via the payment method used during the checkout, and you as a seller will be credited the appropriate sales fees and the taxes applied to the order in your PayPal account. 

Example order to be refunded with the More actions menu open and the unavailable Send Refund option highlighted

The refund process is automatic and it doesn't require any additional steps from the seller. The refund doesn't need to be confirmed on the order page at this point. 

If the refund is done using PayPal directly instead of the order page, it will still be reflected on the Discogs’s order page. The fees associated with the order will be adjusted accordingly. 

                                                                                                                                               

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