Configure how Zuora handles refund rejected events during gateway reconciliation.

1. Navigate to Settings > Payments > Gateway Reconciliation Configuration.
2. Select how Zuora handles refund rejected events.

   Choose one of the following options:

   Update the Refund gateway reconciliation fields only

   The default option. Zuora updates the gateway reconciliation fields and creates external refunds to reopen the payment balance.

   Update the Refund gateway reconciliation fields and reverse the Refund

   Zuora updates the gateway reconciliation fields without reopening the payment balance.

   If Invoice Settlement is disabled, Zuora creates a new external overpayment for a failed refund generated from a payment or credit balance.

   If Invoice Settlement is enabled, Zuora creates a new external unapplied payment for a failed refund generated from a payment.

   Note:

   For a failed refund generated from a credit memo, Zuora only updates the gateway reconciliation fields and does not create a new credit memo.

3. Click Save.