The Open Banking refund process has been updated to make it faster and more convenient. Refunds are now processed automatically - there is no longer a need to generate XML files or upload them to the bank. Once a refund is initiated via the Merchant Portal or API, it is processed automatically.
1. XML File Generation Is No Longer Supported
Refunds are now processed directly via:
Merchant Portal
API
It is no longer possible to:
Generate XML pain.001 files
Upload refund files to the bank
All refund-related steps are handled automatically in the background.
2. Unique Payment Description Is Mandatory
To ensure that refunds can be processed correctly, merchants must use a different payment description for each payment, adding the payment_description parameter to the payment request.
Reusing the same unstructured reference across multiple payments may prevent refunds from being processed successfully.
3. New Intermediate Refund State
A new refund state has been introduced: refund_initiated
refund_initiatedindicates that SEB has accepted the refund requestThe actual money movement and final outcome are resolved asynchronously
standing_amountis not reduced until the refund is finalized
Both successful and unsuccessful outcomes are transparently reflected, ensuring full visibility throughout the refund lifecycle.
4. Refund Initiation, Portal Experience, API
How Refunds Can Be Initiated
Refunds can be initiated:
Directly in the Merchant Portal
Via API integration
Strong Customer Authentication (SCA) is not required to confirm refund transactions.
Merchant Portal
Merchants no longer need to manually download generated XML files from the Actions section
All refund-related steps are handled automatically in the background
The refund status is continuously updated and displayed directly on the payment page
API
The refund API preserves the existing refund initiation flow and endpoints
The primary changes are related to refund state handling and new intermediate statuses, reflecting the fully API-driven refund lifecycle
5. User Permissions (Merchant Portal)
To initiate refund transactions in the Merchant Portal, users must have a dedicated refund permission.
Without this right, the user will not be able to create refunds.
To enable this permission:
Go to Settings → Merchant Users
Select the specific user
Enable "Can Refund Open Banking payments"
Save the changes
6. Refund Rules and Limitations
Refunds are available only for transactions that were collected to the merchant’s SEB account
Transactions are refundable for 6 months from the original payment date
Refunds can only be made to the original payer
It is not possible to change the beneficiary IBAN
Partial refunds are allowed, single transaction can be refunded multiple times
The total refunded amount cannot exceed the remaining
standing_amountof the original transaction