Authorize.Net CIM: Error when refunding: "The referenced transaction does not meet the criteria for issuing a credit."

Authorize.Net does not allow capture transactions to be refunded until they have ‘settled’ with the merchant bank and card processor. Settlement happens once a day, usually in the evening, but varies based on your account settings. If you try to refund a transaction before it has settled, you’ll receive this error message. When this happens, just wait until the next day for the bank to catch up, then try again.

Note that this will only happen if you are attempting a partial refund (refunding less than the total amount of the invoice). If you are refunding the entire invoice and the transaction has not yet settled, we automatically void it instead. You won’t notice anything different.