Abstract: A method for processing a payment transaction relating to a purchase and refunding a tax paid on the purchase comprises: receiving data relating to a payment transaction associated with an electronic payment card; storing said data in a payment transaction record in a data store; analysing the payment transaction record to determine whether the payment transaction is eligible for a tax refund; determining a tax refund value relating to the payment transaction; and coordinating between an issuer associated with the payment card and a tax authority in order to credit an account associated with the electronic payment card with the tax refund value. The invention thereby provides a scheme by which an overseas cardholder can be provided with a refund of the tax paid on eligible purchases in a manner that is user-friendly and transparent to the cardholder.