Processing payment refunds for invalid payment instruments

A computer system, comprising:

• a processor;
• a memory device coupled to the processor;
• and
• a computer readable storage device coupled to the processor, wherein the storage device contains program code executable by the processor via the memory device to implement a method for automatically processing refunds to a mobile payment account of a customer, the method comprising:
• retrieving, by a processor of a computing system, sales transaction information from a transaction records database, in response to a request from a point of sale device when a refund for an item is initiated at the point of sale device by scanning a user mobile device at the point of sale;
• transmitting, by the processor, the sales transaction information to the point of sale device to calculate an amount of funds to be refunded to a payment instrument of the customer used to purchase the item;
• detecting, by the processor, that the payment instrument is not valid while attempting to apply the amount of funds to the payment instrument;
• communicating, by the processor, with the user mobile device to check if an electronic gift card currently exists and is linked to the mobile payment account associated with the user mobile device, in response to the detecting that the payment instrument is not valid;
• generating, by the processor, a new electronic gift card for addition to the mobile payment account associated with the user mobile device, as a result of the checking;
• and
• applying, by the processor, the amount of funds to the new electronic gift card, thereby avoiding a need to distribute a physical gift card to the user at the point of sale.

A computer program product, comprising a computer readable hardware storage device storing a computer readable program code, the computer readable program code comprising an algorithm that when executed by a computer processor of a computing system implements a method for automatically processing refunds to a mobile payment account of a customer, comprising:

• retrieving, by a processor of a computing system, sales transaction information from a transaction records database, in response to a request from a point of sale device when a refund for an item is initiated at the point of sale device by scanning a user mobile device at the point of sale;
• transmitting, by the processor, the sales transaction information to the point of sale device to calculate an amount of funds to be refunded to a payment instrument of the customer used to purchase the item;
• detecting, by the processor, that the payment instrument is not valid while attempting to apply the amount of funds to the payment instrument;
• communicating, by the processor, with the user mobile device to check if an electronic gift card currently exists and is linked to the mobile payment account associated with the user mobile device, in response to the detecting that the payment instrument is not valid;
• generating, by the processor, a new electronic gift card for addition to the mobile payment account associated with the user mobile device, as a result of the checking;
• and
• applying, by the processor, the amount of funds to the new electronic gift card, thereby avoiding a need to distribute a physical gift card to the user at the point of sale.