You are shipping the item before the customer’s card is FORMALLY charged, not before their card is verified.

There are two parts to any successful credit card transaction:

The Authorization – This is where we verify the CVV code, address and phone number, and ensure that the card is good for the amount required to complete the transaction. If it is, we put an authorization out that puts a hold on those funds and reserves them for us. This happens instantly, when the customer checks out.

The Charge – This is where we turn the authorization into a formal charge, and the charge actually appears on the customer’s statement. We put the charge through when you mark the item as shipped (or instantly, if the product is electronically delivered or otherwise provided to the customer instantaneously).

If the original authorization expires before you are able to mark the order as shipped, you will need to reauthorize the amount from the Mark Shipping area of your Account Homepage.

You can easily issue partial refunds for orders through the admin interface of your account. First, you will need to reference the order in your account, this can be done by logging into your account homepage and selecting the “Sales” tab near the top of your account homepage and then selecting the “List” sub-tab. You can then click on either the sale number you wish to cancel/refund under the sale list or use the “Sale Search” form to search for the order. Once you reference an order in your account you can issue a partial refund by clicking on the “add refund” link directly under the invoice number.

Please note: The refund option may not be displayed on a sale based on the following criteria:

• Your username does not have authorization to issue refunds (basic editing access).
• The sale is over 60 days old.
• The invoice has no balance left to refund.
• For a line item refund, the line item has already been refunded.
• For a line item refund, the line item amount is more than the
  remaining balance on the invoice (this can happen on an invoice with one
  line item and a coupon or on an invoice with a partial refund).
• It’s an online check order that has not been deposited.

Please feel free to contact us directly for refund assistance.

You can cancel an order by following the steps listed below:

1. Login to your account at https://www.2checkout.com/va/
2. Click on the “Sales” tab near the top of your account homepage.
3. Click on either the sale number you wish to cancel/refund under the recent sales display or use the “Sale Search” form to bring up the order.
4. To issue a refund click on the “Refund Sale” link on the top left corner of the order.
5. Here you will be required to select a reason for the refund, enter a comment and click on “Submit Refund”.
6. You and the customer will be sent an email confirming the cancellation of the sale.

Please note: The refund option may not be displayed on a sale based on the following criteria:

• Your username does not have authorization to issue refunds (basic editing access).
• The sale is over 60 days old.
• The invoice has no balance left to refund.
• For a line item refund, the line item has already been refunded.
• For a line item refund, the line item amount is more than the
  remaining balance on the invoice (this can happen on an invoice with one
  line item and a coupon or on an invoice with a partial refund).
• It’s an online check order that has not been deposited.

Please feel free to contact us directly for refund assistance.

It normally takes 3-4 business days for the Credit Card company to update your balance and show the refund.

2CO suppliers, in coordination with our Customer Care team, can attempt to limit refunds as per your stated product return or cancellation policy.

This policy should be easy to understand and clearly posted on your site. It should also be sent to 2CO via a ticket system request for notation on your 2CO account.

It is possible, however, for a customer to obtain a bank-initiated refund (chargeback) for six months after the date of the order. In some instances, this period can be extended to up to one year. It primarily depends upon the nature of the complaint and the card-issuing bank involved.

As a general rule of thumb, it is often in the best interest of both yourself and 2CO to issue a refund whenever it is apparent that no other action is going to satisfy the customer. The rules that govern transactions are written to favor the consumer in almost every instance.

For additional information on these topics please review the following articles:

What is a Chargeback?

How can I help to reduce the number of customer disputes?