What happens to my payments when my transaction is refunded?

Generally, as soon as we receive your refund from the merchant, we’ll apply it to your remaining payments.

Full Refunds:

If you’ve returned your entire order and it has been refunded including the delivery, all future payments will be cancelled and any payments made will be refunded. 

Partial Refunds:

If you’ve returned some items in your order and received a refund, we’ll apply this to your remaining payments. If your partial refund is larger than your remaining balance, we’ll refund you the difference.

Example 1: Refund amount is larger than outstanding balance with Zilch

Total Transaction: $100 (with $25 paid at the time of purchase)

Payment schedule before refund:

If a $90 refund is processed before the second installment is due, all future installments will be cancelled. Since the transaction amount is $10 (after the $90 refund) and a $25 payment has already been made, Zilch will return the $15 difference to the original payment method.

Payment schedule after the $90 refund is processed:

Example 2: Refund amount is smaller than outstanding balance with Zilch

Total Transaction: $100 (with $25 paid at the time of purchase)

If a $20 is processed after the first payment of $25 was paid, but before the second installment was due, the upcoming installments would be adjusted. Since the transaction amount is $80 (after the $20 refund), the remaining amount is adjusted to $55 ($80 - $25 = $55). And, the 3 remaining installments are $18.33 (with the last installment rounded up) for the remainder of the loan.

 
Payment Schedule after the £20 refund is processed: