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.
At the moment, the new Open Banking refund flow is available only for Estonian and Latvian merchants. Lithuanian merchants will be enabled at a later stage.
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
Old Refund Flow (currently for Lithuanian merchants)
Select a single payment for refund from the payment list
Specify the refund amount. A single payment can be refunded multiple times until the outstanding amount reaches zero
Enter the creditor’s name (customer name) for the refund. Refunds cannot be processed without the creditor’s name
The creditor’s IBAN is automatically retrieved from the initial payment in the merchant portal
To initiate the refund process, click the “REFUND” button. The payment status will change to “refunded”, and the standing amount will be updated accordingly
If needed, merchants can change the debtor IBAN for Open Banking refunds in the portal under E-shop settings
The same process can also be performed via API by making a
/refundrequest, which marks the payment as “refunded”
XML pain.001 file generation
Refunded payments can be viewed for a selected time period under the “Actions” section in the merchant portal
Refunded payments can be filtered into a separate list from other payments Select the payments to be included in the XML pain.001 file. A maximum of 1,500 transactions can be included in a single file
Click the “XML file for OB refund” button to download the XML pain.001 file, which can then be uploaded to the SEB system
In the Business Internet Bank, navigate to Transactions → Import of Payments XML to upload the file
If a refund fails in the SEB system, it is possible to revert the payment. Go to the payment details page and click the “REVERT” button. This will change the payment status back to “settled” and update the outstanding amount accordingly
The same process can also be performed via the API by making a
/refunds/xml_payment_filerequest. Payments can also be reverted via the/refunds/revertendpoint