How is a refund to the original payment method processed (with gateway fees)?

A refund to the original payment method is processed through the gateway, accounting for gateway fee handling. Because gateways take a fee on the original charge (and fee treatment on refunds varies), the refund is recorded with that fee accounting in mind, as an individual transaction against the payment. So the books reflect the true net effect of the refund, not just the headline…

A refund to the original payment method is processed through the gateway, accounting for gateway fee handling. Because gateways take a fee on the original charge (and fee treatment on refunds varies), the refund is recorded with that fee accounting in mind, as an individual transaction against the payment. So the books reflect the true net effect of the refund, not just the headline amount. This keeps payment reconciliation accurate through the reverse flow.