Why This Happens
Your Adyen merchant account has been flagged because your refund rate exceeds acceptable thresholds. High refund ratios indicate potential issues with product quality, fulfillment accuracy, or customer satisfaction. Persistent high refund rates signal risk to Adyen and can trigger contract review or increased reserves.
Example Notification
"Your merchant account has been flagged for a high refund ratio. Please take action to reduce refunds and provide an explanation for the elevated rate."
Compliance Steps
Export and analyze refund data by category (quality, wrong item, buyer's remorse)
Identify the top 3 drivers of refunds and address root causes
Improve product descriptions, photos, and size guides to set accurate expectations
Implement quality control checks before shipment
Share your refund reduction plan with your Adyen account manager
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