Why is my China-order refund less in pounds?
A lower sterling refund can reflect a changed exchange rate, conversion charges or a seller returning less than agreed. Compare the promised and sent amounts in the agreed currency, then trace conversion rates and fees through to your bank receipt. Share the unexplained difference and supporting records with Cambridge China Bridge.
Start with the currency the seller agreed to refund
Find the written refund agreement and identify its amount, currency and scope. Does it promise a foreign-currency amount, a sterling amount or repayment of your original sterling outlay? Compare the seller's refund instruction with that promise before comparing bank balances. If the promise is unclear, ask the seller to confirm it in writing. For credit offers, see our guide to marketplace credit instead of a refund.
Keep the invoice, original payment record, refund agreement, seller's remittance and bank receipt together. Use supplier credit-note reconciliation for the wider settlement and accounting checks. This guide focuses on explaining the difference between the original sterling debit and the refund receipt.
Trace where the currency was converted
Ask your bank, card issuer or payment platform for the original transaction currency, amount, conversion date, applied rate and separate charges. Request the equivalent details for the refund. Identify who converted the money at each stage. A sterling account debit alone does not establish that the seller charged you in sterling.
Check whether the refund reversed the original transaction or arrived as a separate transfer. If it reached a foreign-currency balance, record its receipt separately from any later conversion into pounds. Use supplier payment methods for payment-route background, then check the actual records for your route.
Separate rate movements from conversion costs
For comparison, express each applied rate as pounds received or paid per unit of foreign currency. Apply the original rate and the refund rate to the same foreign-currency refund amount. That isolates the effect of the applied-rate difference without treating an agreed partial refund as a currency loss. Keep separately charged fees outside this calculation.
An applied-rate difference can include a changed conversion margin as well as market movement. Ask the provider to identify its underlying rate and margin at each conversion; leave the split unresolved if it cannot. HMRC says its published rates can be used for duty and import VAT. For your cash comparison, use the actual transaction records; see customs versus payment exchange rates.
| Difference | What to check | Who to ask |
|---|---|---|
| Seller sent less than promised | Compare promised and instructed amounts in the agreed currency | Seller |
| Applied conversion rates differ | Compare the same foreign-currency amount at each rate; request the underlying rates and margins | The provider that converted the money |
| Separate charges reduced the receipt | Match sending, intermediary, receiving and conversion charges to records | Seller and relevant payment providers |
| Money remains unexplained | Trace the remittance reference through to the credited amount | Seller and receiving provider |
Check deductions before calling the refund incomplete
Compare the agreed refund with the amount instructed by the seller, then trace deductions before conversion and after conversion. Ask for records of sending, intermediary and receiving charges where relevant. Distinguish a fee shown separately from a margin already built into the exchange rate, so you do not count the same cost again.
If the seller instructed less than agreed, ask it to identify any retained freight, service charge or other deduction and show where you agreed to it. If it instructed the agreed amount but less arrived, investigate the transfer deductions separately. Check who agreed to bear those charges; a charge being identifiable does not settle that question.
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Complain about the unexplained part
Send a short reconciliation stating the promised refund, seller's instructed amount, documented deductions, amount converted, applied rate and sterling receipt. Mark missing information as unexplained. Ask the seller about a short refund instruction; ask the converting provider about rates and margins; ask the receiving provider to trace missing funds or charges. State the correction or explanation you want.
If a UK seller promised a sterling refund, ask it to reconcile against that promise rather than accepting a general explanation about its factory's exchange rate. Use UK seller supply terms to review the agreed documents. For future orders, ask for explicit refund currency, conversion arrangements and responsibility for charges. Cambridge China Bridge's staff in China can help request the supplier's refund breakdown.
Frequently asked questions
Can a full China-order refund be worth less in pounds?
Yes, the agreed foreign-currency amount can be returned while the sterling receipt is lower because of conversion rates or charges. Confirm the amount sent and trace the conversion before alleging a seller shortfall.
How do I know whether the seller refunded too little?
Compare the written refund promise with the seller's instructed amount in the same currency. Then trace any transfer deductions. A smaller sterling receipt alone does not show that the seller instructed too little.
Should I use today's exchange rate to check my refund?
Use the rates actually applied to the payment and refund. Today's rate does not explain a past conversion. Ask for the conversion dates, underlying rates, margins and separately charged fees.
Who should I complain to about a lower refund?
Ask the seller about an amount below its promise, the converting provider about rates or margins, and the receiving provider about missing funds or charges. Send the records and identify the unexplained difference.