diff --git a/crates/data_models/src/payments/payment_attempt.rs b/crates/data_models/src/payments/payment_attempt.rs
index a937c785902..44aa48b142a 100644
--- a/crates/data_models/src/payments/payment_attempt.rs
+++ b/crates/data_models/src/payments/payment_attempt.rs
@@ -36,6 +36,13 @@ pub trait PaymentAttemptInterface {
         storage_scheme: storage_enums::MerchantStorageScheme,
     ) -> error_stack::Result<PaymentAttempt, errors::StorageError>;
 
+    async fn find_payment_attempt_last_successful_or_partially_captured_attempt_by_payment_id_merchant_id(
+        &self,
+        payment_id: &str,
+        merchant_id: &str,
+        storage_scheme: storage_enums::MerchantStorageScheme,
+    ) -> error_stack::Result<PaymentAttempt, errors::StorageError>;
+
     async fn find_payment_attempt_by_merchant_id_connector_txn_id(
         &self,
         merchant_id: &str,
diff --git a/crates/diesel_models/src/query/payment_attempt.rs b/crates/diesel_models/src/query/payment_attempt.rs
index 4737233e304..9e9195f5e0b 100644
--- a/crates/diesel_models/src/query/payment_attempt.rs
+++ b/crates/diesel_models/src/query/payment_attempt.rs
@@ -120,6 +120,42 @@ impl PaymentAttempt {
         )
     }
 
+    pub async fn find_last_successful_or_partially_captured_attempt_by_payment_id_merchant_id(
+        conn: &PgPooledConn,
+        payment_id: &str,
+        merchant_id: &str,
+    ) -> StorageResult<Self> {
+        // perform ordering on the application level instead of database level
+        generics::generic_filter::<
+            <Self as HasTable>::Table,
+            _,
+            <<Self as HasTable>::Table as Table>::PrimaryKey,
+            Self,
+        >(
+            conn,
+            dsl::payment_id
+                .eq(payment_id.to_owned())
+                .and(dsl::merchant_id.eq(merchant_id.to_owned()))
+                .and(
+                    dsl::status
+                        .eq(enums::AttemptStatus::Charged)
+                        .or(dsl::status.eq(enums::AttemptStatus::PartialCharged)),
+                ),
+            None,
+            None,
+            None,
+        )
+        .await?
+        .into_iter()
+        .fold(
+            Err(DatabaseError::NotFound).into_report(),
+            |acc, cur| match acc {
+                Ok(value) if value.modified_at > cur.modified_at => Ok(value),
+                _ => Ok(cur),
+            },
+        )
+    }
+
     #[instrument(skip(conn))]
     pub async fn find_by_merchant_id_connector_txn_id(
         conn: &PgPooledConn,
diff --git a/crates/router/src/core/refunds.rs b/crates/router/src/core/refunds.rs
index aba6e9794e0..2d572cee951 100644
--- a/crates/router/src/core/refunds.rs
+++ b/crates/router/src/core/refunds.rs
@@ -50,10 +50,16 @@ pub async fn refund_create_core(
         .to_not_found_response(errors::ApiErrorResponse::PaymentNotFound)?;
 
     utils::when(
-        payment_intent.status != enums::IntentStatus::Succeeded,
+        !(payment_intent.status == enums::IntentStatus::Succeeded
+            || payment_intent.status == enums::IntentStatus::PartiallyCaptured),
         || {
-            Err(report!(errors::ApiErrorResponse::PaymentNotSucceeded)
-                .attach_printable("unable to refund for a unsuccessful payment intent"))
+            Err(report!(errors::ApiErrorResponse::PaymentUnexpectedState {
+                current_flow: "refund".into(),
+                field_name: "status".into(),
+                current_value: payment_intent.status.to_string(),
+                states: "succeeded, partially_captured".to_string()
+            })
+            .attach_printable("unable to refund for a unsuccessful payment intent"))
         },
     )?;
 
@@ -75,7 +81,7 @@ pub async fn refund_create_core(
     })?;
 
     payment_attempt = db
-        .find_payment_attempt_last_successful_attempt_by_payment_id_merchant_id(
+        .find_payment_attempt_last_successful_or_partially_captured_attempt_by_payment_id_merchant_id(
             &req.payment_id,
             merchant_id,
             merchant_account.storage_scheme,
diff --git a/crates/storage_impl/src/mock_db/payment_attempt.rs b/crates/storage_impl/src/mock_db/payment_attempt.rs
index fe244b10325..6137b444f96 100644
--- a/crates/storage_impl/src/mock_db/payment_attempt.rs
+++ b/crates/storage_impl/src/mock_db/payment_attempt.rs
@@ -205,4 +205,24 @@ impl PaymentAttemptInterface for MockDb {
             .cloned()
             .unwrap())
     }
+    #[allow(clippy::unwrap_used)]
+    async fn find_payment_attempt_last_successful_or_partially_captured_attempt_by_payment_id_merchant_id(
+        &self,
+        payment_id: &str,
+        merchant_id: &str,
+        _storage_scheme: storage_enums::MerchantStorageScheme,
+    ) -> CustomResult<PaymentAttempt, StorageError> {
+        let payment_attempts = self.payment_attempts.lock().await;
+
+        Ok(payment_attempts
+            .iter()
+            .find(|payment_attempt| {
+                payment_attempt.payment_id == payment_id
+                    && payment_attempt.merchant_id == merchant_id
+                    && (payment_attempt.status == storage_enums::AttemptStatus::PartialCharged
+                        || payment_attempt.status == storage_enums::AttemptStatus::Charged)
+            })
+            .cloned()
+            .unwrap())
+    }
 }
diff --git a/crates/storage_impl/src/payments/payment_attempt.rs b/crates/storage_impl/src/payments/payment_attempt.rs
index 06aacccc769..e86119e41af 100644
--- a/crates/storage_impl/src/payments/payment_attempt.rs
+++ b/crates/storage_impl/src/payments/payment_attempt.rs
@@ -115,6 +115,27 @@ impl<T: DatabaseStore> PaymentAttemptInterface for RouterStore<T> {
         .map(PaymentAttempt::from_storage_model)
     }
 
+    #[instrument(skip_all)]
+    async fn find_payment_attempt_last_successful_or_partially_captured_attempt_by_payment_id_merchant_id(
+        &self,
+        payment_id: &str,
+        merchant_id: &str,
+        _storage_scheme: MerchantStorageScheme,
+    ) -> CustomResult<PaymentAttempt, errors::StorageError> {
+        let conn = pg_connection_read(self).await?;
+        DieselPaymentAttempt::find_last_successful_or_partially_captured_attempt_by_payment_id_merchant_id(
+            &conn,
+            payment_id,
+            merchant_id,
+        )
+        .await
+        .map_err(|er| {
+            let new_err = diesel_error_to_data_error(er.current_context());
+            er.change_context(new_err)
+        })
+        .map(PaymentAttempt::from_storage_model)
+    }
+
     async fn find_payment_attempt_by_merchant_id_connector_txn_id(
         &self,
         merchant_id: &str,
@@ -618,6 +639,57 @@ impl<T: DatabaseStore> PaymentAttemptInterface for KVRouterStore<T> {
         }
     }
 
+    async fn find_payment_attempt_last_successful_or_partially_captured_attempt_by_payment_id_merchant_id(
+        &self,
+        payment_id: &str,
+        merchant_id: &str,
+        storage_scheme: MerchantStorageScheme,
+    ) -> error_stack::Result<PaymentAttempt, errors::StorageError> {
+        let database_call = || {
+            self.router_store
+                .find_payment_attempt_last_successful_or_partially_captured_attempt_by_payment_id_merchant_id(
+                    payment_id,
+                    merchant_id,
+                    storage_scheme,
+                )
+        };
+        match storage_scheme {
+            MerchantStorageScheme::PostgresOnly => database_call().await,
+            MerchantStorageScheme::RedisKv => {
+                let key = format!("mid_{merchant_id}_pid_{payment_id}");
+                let pattern = "pa_*";
+
+                let redis_fut = async {
+                    let kv_result = kv_wrapper::<PaymentAttempt, _, _>(
+                        self,
+                        KvOperation::<DieselPaymentAttempt>::Scan(pattern),
+                        key,
+                    )
+                    .await?
+                    .try_into_scan();
+                    kv_result.and_then(|mut payment_attempts| {
+                        payment_attempts.sort_by(|a, b| b.modified_at.cmp(&a.modified_at));
+                        payment_attempts
+                            .iter()
+                            .find(|&pa| {
+                                pa.status == api_models::enums::AttemptStatus::Charged
+                                    || pa.status == api_models::enums::AttemptStatus::PartialCharged
+                            })
+                            .cloned()
+                            .ok_or(error_stack::report!(
+                                redis_interface::errors::RedisError::NotFound
+                            ))
+                    })
+                };
+                Box::pin(try_redis_get_else_try_database_get(
+                    redis_fut,
+                    database_call,
+                ))
+                .await
+            }
+        }
+    }
+
     async fn find_payment_attempt_by_merchant_id_connector_txn_id(
         &self,
         merchant_id: &str,