What occurs if there are insufficient funds to issue a refund?

When a refund is initiated but there are insufficient funds available in the account to cover it, placing the refund in a pending status is the correct process. This allows time for the account to potentially be replenished. During this pending period, the system maintains a record of the refund request and will process it once sufficient funds are available. This mechanism prevents immediate denial of the refund and allows for flexibility in handling the transaction.

The other options do not accurately reflect the standard handling of such a situation. Automatically denying the refund would not take into consideration any future deposits that might cover it. Issuing a credit, while a solution in some contexts, does not directly address the situation of insufficient funds in the same way. Lastly, informing the customer to contact support may not be necessary unless the pending status persists for an extended period or there are further complications regarding the refund.