With the Support refunding payments from the credit balance with Gateway Reconciliation feature enabled, payments with an available credit balance amount can be refunded by using the credit balance during reconciliation. When the FailedToSettle event occurs on a payment, a credit balance refund will be created if the refund amount is equal to or less than the existing credit balance amount.
By default, this feature is disabled. To enable it, navigate to Payments Settings > Define Payment Rules and set Support refunding payments from the credit balance with Gateway Reconciliation to Yes.
This feature is only available when Invoice Settlement is disabled. It is not required when Invoice Settlement is enabled.