Abstract: A method for processing a payment transaction relating to a purchase and refunding a tax paid on the purchase, the method comprising (i) receiving, over a network from a merchant apparatus, payment transaction data relating to a payment transaction associated with an electronic payment card, (ii) analysing the payment transaction data to determine whether the payment transaction is eligible for a tax refund; (iii) determining a tax refund value relating to the payment transaction; and (iv) coordinating between an issuer associated with the electronic 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 or process 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, that has traditionally been performed in a largely paper-based environment.