---
title: "Processing refunds"
description: "Learn how to set a refund reserve for your user."
url: "https://docs.adyen.com/managed-model/chargebacks-and-refunds/processing-refunds"
source_url: "https://docs.adyen.com/managed-model/chargebacks-and-refunds/processing-refunds.md"
canonical: "https://docs.adyen.com/managed-model/chargebacks-and-refunds/processing-refunds"
last_modified: "2022-04-01T08:29:00+02:00"
language: "en"
---

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# Processing refunds

Learn how to set a refund reserve for your user.

Refunds can be processed only when funds are available in the processing coverage, or when a certain threshold (refund reserve) has been set for that specific merchant account.

By default, your users receive payments daily, so the funds for refunds are almost always ensured. However, if there are no incoming payments for a certain period of time, funds may not be available to process refunds. To cover these cases, you can set a refund reserve for them to make sure there is always a minimum amount available that can be used to process refunds.

To set a refund reserve for your user:

1. Log in to your [live Customer Area](https://ca-live.adyen.com/).
2. Select the appropriate merchant account from the dropdown list in the upper left corner.
3. Go to **Balances** > **Balances overview** and select **Control your balances**.
4. In the **Threshold** section, select **Change**.
5. Enter the reserve threshold amount and select **Save**.

For example, if you set a refund reserve of GBP 1000 for a merchant account, future payables will be allocated to the reserve until it is covered. This amount will be available for processing refunds. If used, the refund reserve will again automatically be refilled from future payables.