> For the complete documentation index, see [llms.txt](https://developers.bead.xyz/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://developers.bead.xyz/faqs-and-troubleshooting/payments-faqs/does-bead-support-a-refund-api-for-crypto-wallet-and-bnpl-payments.md).

# Does Bead support a refund API for crypto, wallet, and BNPL payments?

## Does Bead support a refund API for crypto, wallet, and BNPL payments?

No. Crypto, digital wallet, and BNPL payments settle like cash. When a payment is paid, the funds are converted to USD and deposited into the merchant's bank account via ACH. There is no open transaction, wallet balance, or asset to reverse at the API level.

**Why there is no refund API**

Once a crypto payment is paid, the digital asset the customer sent is converted to USD immediately. By the time a refund would be requested, the original asset no longer exists in returnable form. Sending crypto back to a customer would require sourcing new assets and initiating a new outbound transfer, which carries Bank Secrecy Act and FinCEN Funds Travel Rule obligations including identity verification, sanctions screening, and in some cases Suspicious Activity Report filing. That is not a simple reversal.

The same logic applies to digital wallet and BNPL tenders. PayPal, Venmo, and Klarna payments settle to the merchant as USD through Bead's infrastructure. There is no open wallet session or BNPL loan record available to reverse after settlement.

**What merchants should do instead**

Merchants should apply their standard cash return policy. Depending on that policy, the merchant may issue cash back, an ACH payment or check from their bank account, store credit or a gift card, or an exchange for another item or service. The refund method is the merchant's choice and is independent of the original payment tender.

Merchants should communicate their return policy to customers at the time of purchase, particularly for higher-value transactions.

**What integrators should know**

There is no refund endpoint. Do not build against one. A reclaim return to the payer is reported in `refundLifecycleStatus` and does not change the payment's `statusCode`. A completed reclaim is not a merchant initiated refund. `partiallyRefunded` and `fullyRefunded` are reserved status values. Any refund events handled outside of Bead should be tracked in your own order management or point-of-sale system.

If you are looking for guidance on overpaid or underpaid crypto payments, the excess or the amount sent is returned through Bead's reclaim process, which is not the same as a merchant-initiated refund. To see how a reclaim is progressing and when it has completed, see [Tracking Reclaim Status](/reference-guide/payment-scenarios/tracking-reclaim-status.md).

For the full explanation, see [Refunds for Crypto and Wallet Payments](/reference-guide/payment-scenarios/refunds-for-crypto-and-wallet-payments.md).


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