Refunds

Made a mistake? Product not delivered? Aruvi supports refunds for confidential payments.

Requesting a Refund

If you sent money and need it back:

1. Go to Activity and find the transaction
2. Click on the transaction details
3. Click Request Refund
4. Add a reason (optional but helpful)
5. Submit the request

The recipient sees your refund request and can approve or decline.

Processing Refunds (For Recipients)

When someone requests a refund from you:

1. Check Activity or Refunds page
2. You'll see pending refund requests
3. Review each request
4. Click Approve or Decline

If you approve:

• The original amount returns to the sender
• Transaction is marked as refunded

If you decline:

• Request is closed
• Original payment stands
• Requester can dispute off-chain if needed

Refund States

State	Meaning
Pending	Waiting for recipient decision
Approved	Money returned to sender
Declined	Recipient rejected the request
Expired	Request timed out

Time Limits

Refund requests have a window:

• Request within: 30 days of original payment (configurable)
• Response time: 7 days for recipient to respond
• After expiry: Request auto-declines

These limits prevent indefinite claims on old transactions.

Privacy During Refunds

Refund amounts are encrypted, just like regular payments.

When you request a refund:

• The recipient can see a refund was requested
• The original (encrypted) amount is referenced
• No one else sees the amounts involved

Partial Refunds

Currently, Aruvi supports full refunds only. Partial refunds are on the roadmap.

Workaround: Recipient can decline the full refund and send a new payment for the partial amount.

Disputes

Aruvi is decentralized — there's no customer service to call.

If a refund is declined unfairly:

• Try reaching the recipient directly
• Use off-chain communication
• Document everything for any external dispute resolution

We're exploring decentralized dispute resolution for future versions.

Merchant Considerations

If you're receiving payments as a business:

Auto-Approve Settings

Some businesses auto-approve refunds within certain conditions:

• Within 24 hours
• Below certain amount
• Before product shipped

Refund Policies

Display your refund policy clearly:

• In your checkout flow
• On payment requests
• In any confirmation messages

Tracking

Keep records of:

• All refund requests
• Your responses
• Reasons for declining

How It Works Technically

The refund flow:

1. Request: Sender creates refund request referencing original payment
2. Review: Recipient sees request, encrypted amount
3. Approve: Recipient calls approveRefund with encrypted amount
4. Transfer: Contract moves funds back to original sender

The smart contract doesn't enforce refunds — the recipient must approve. This matches real-world payment systems where merchants control refunds.

Common Questions

Can I refund a subscription payment?

Currently no. Subscriptions are designed for recurring payments where refunds don't typically apply. Cancel the subscription instead.

What if recipient never responds?

Request expires after the timeout period (default 7 days). You'll need to reach them off-chain.

Are refund requests private?

Yes. The request, amounts, and response are all encrypted. Third parties see that something happened but not what or how much.

Can I cancel a refund request?

Yes, before it's processed:

1. Find the request in Activity
2. Click Cancel Request
3. Confirm

What about gas fees?

• Requesting refund: Gas fee
• Approving refund: Gas fee
• Declining refund: Gas fee

Original transaction gas fees are never refunded — those went to validators.

Best Practices

For senders:

• Request refunds promptly
• Provide clear reasons
• Keep records of what you sent and why you want it back

For recipients:

• Respond to requests quickly
• Be fair — your reputation matters
• Set clear policies upfront