Yes, Recurly requires that a paid transaction exists in association with a customer's account in order for a refund to be pushed through to your payment gateway.
If no transaction exists, you will need to either:
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Contact Your Payment Gateway: You can contact your primary payment gateway directly to discuss forcing a refund through their system.
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Refund Outside of Recurly: You can refund the customer outside of the Recurly system using an alternative method, such as a check or a wire transfer.
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