How to configure and use the Refund Journey

This articles explains how the Refund feature work in Limio for Salesforce, the pre-configuration required in Limio, Limio for Salesforce and Zuora, and how refunds are generated in Zuora.

It's important to note that the refund feature in Limio for Salesforce works differently for regular subscriptions (for example $10 a month) and gift subscription (e.g. one-off $120 to offer an annual subscription to a friend). Learn more about gift here.

Pre-configuration of the feature

Using the feature

Integration with Zuora finance objects

 

Pre-configuration of the feature

In Limio for Salesforce 

There are two use cases for refunding:

• Standard subscriptions: The catalog needs to be preloaded with “The offer type: Refund". 
• Gifts: The matching offer will be pre-populated with the same offer originally used. 

In Zuora and Limio

Note: With Limio for Zuora, a refund journey will generate a Credit Memo in Zuora. Credit Memo in Zuora are invoicing items, and as such, requires a Limio Offer (which links to a Zuora Product and Rate Plan). Learn more in Zuora documentation.

For regular subscription (i.e. not a gift), you must define a generic, worldwide refund Offer in Limio, that matches a Zuora generic product and zero-priced one-off rate plan. 

 

The Limio Offer only needs to reference the Zuora generic product and one-off rate plan.

 

For gift, you do not need to create any new Limio Offer, as the refund Offer used will be the original gift Offer.

Then make sure all the offer types are defined correctly:

• Standard subscriptions: The refund Offer should have the offer type: Refund. 
• Gifts: All gift offers should have the Offer type: Gift.

Using the feature

To begin a Refund journey in LFS, select the relevant subscription and Refund action

In the relevant screen action, select the following

• an offer
• a refund amount

Offer

There are two types of refunds:

• Standard subscriptions: If the selected subscription to refund includes a regular offer, a user needs to select a Compensation offer from the Offer Catalog.
• Gifts: If the selected subscription to refund is a gift offer, a user needs to select the same offer the subscription was originally created with. To prevent the user from making a mistake and having to perform unnecessary clicks, the same offer originally used is pre-set already in the UI, if a match is found for it.

Refund amount validation

The refund amount field validates the number entered to check that it is less than or equal to the price of the currently active Limio Offer of the subscription being refunded.

The empty field triggers a validation rule as well.

 

In case of a gift subscription refund, after having selected the original offer from the Offer Catalog, the refund amount field gets pre-populated with the offer’s original price.

 

Payment Method

Next, the user needs to select a payment method. The user can provide a new credit card, or select a previously created payment method from the Customer Wallet (if such a payment method exists).

It is possible to perform a refund only once for the gift subscription and multiple times against a regular one.

Integration with Zuora finance objects

Out-of-the-box, Limio will generate a Credit Memo in Zuora, referencing the Zuora Rate Plan Charges derived from the Limio Offer selected.

If possible, we request Zuora to also create a 'Electronic Non-Referenced Refund' for the credit memo. 

See an example of a Credit Memo and  Refund generated against this Credit Memo below. 

Known limitation:

• Credit Memos requires the Invoice Settlement feature activated on Zuora.
• If the initial payment method is a credit card, Limio will generate an Electronic Non-Referenced Refund in Zuora via a Credit Memo.
  • Note that Electronic Non-Referenced Refund are only supported by some gateways. Find the full list here. You can also check individual payment gateway, for example Worldpay.
• Other payment methods, such as Direct Debit (called 'Bank Transfer' in Zuora), do not support Electronic Non-Referenced Refund. They require an External Non-Referenced Refund. For example, Limio will not be able to create an Electronic Non-Referenced Refund for Direct Debit UK performed via the GoCardless gateway against the Limio-generated Credit Memo. For refunds against those payment methods, you will need to create a Zuora Workflow to handle the logic within Zuora to create an External Non-Referenced Refund on the back of the Limio-generated Credit Memo.