Improved handling of failed DE refunds

We’ve improved how Azupay handles refunded payments that are sent back to a payer via Direct Entry (DE), but are later rejected by the payer’s bank.

Previously, when a refunded payment failed via DE, the returned funds would be routed back to Azupay’s DE bridge instead of the merchant float account. This sometimes resulted in unallocated funds in Azupay’s S1 account and left the original Payment Request in an incorrect state rather than RETURN_FAILED. Such an event required manual intervention before the client could recover those funds to initiate the return by another channel.

Now, when a refunded payment fails via DE, the returned funds are credited back to the client’s Azupay account balance. The Payment Request is also updated to RETURN_FAILED, with the webhook reflecting the failed refund outcome, so that clients and internal teams have a clearer view of what has happened and can take a follow-up action.