diff --git a/sofort/client.py b/sofort/client.py
index 4b24c85..25e85c5 100644
--- a/sofort/client.py
+++ b/sofort/client.py
@@ -7,7 +7,7 @@
 from sofort.internals import Config, as_list
 from sofort import model
 
-from _version import __version__
+from sofort._version import __version__
 
 API_URL = 'https://api.sofort.com/api/xml'
 TRANSACTION_ID = '-TRANSACTION-'
@@ -71,6 +71,13 @@ def payment(self, amount, **kwargs):
 
         return self._request(sofort.xml.multipay(params), params)
 
+    def refunds(self, sender, refunds):
+        request_body = sofort.xml.refunds_by_params({
+            'sender': sender,
+            'refunds': refunds
+        })
+        return self._request(request_body)
+
     def details(self, transaction_ids):
         request_body = sofort.xml.transaction_request_by_params({
             'transaction': as_list(transaction_ids)
diff --git a/sofort/model.py b/sofort/model.py
index d538d85..ace2745 100644
--- a/sofort/model.py
+++ b/sofort/model.py
@@ -14,11 +14,11 @@
 def response(xmlstr):
     result = xmltodict.parse(xmlstr)
     # only one root element is allowed in XML
-    for root, value in result.iteritems():
+    for root, value in result.items():
         if value is None:
             return None
         factory = factories[root]
-        return factory(value)
+        return factory(value, strict=False)
 
 
 class ForcedListType(ListType):
@@ -119,14 +119,33 @@ class TransactionDetailsModel(Model):
                                           ModelType(StatusHistoryItemModel))
 
 
-def transaction_list(transactions):
-    return [TransactionDetailsModel(transact)
+class RefundModel(Model):
+    recipient = ModelType(BankAccountModel)
+    transaction = StringType()
+    amount = DecimalType()
+    comment = StringType()
+    reason_1 = StringType()
+    reason_2 = StringType()
+    time = Iso8601DateTimeType()
+    partial_refund_id = StringType()
+    status = StringType()
+    errors = SofortListType('error', ModelType(ErrorModel))
+
+class RefundsModel(Model):
+    sender = ModelType(BankAccountModel)
+    title = StringType()
+    pain = StringType()
+    refund = ModelType(RefundModel)
+
+
+def transaction_list(transactions, strict=False):
+    return [TransactionDetailsModel(transact, strict=strict)
                 for transact
                 in as_list(transactions['transaction_details'])]
 
 
-def error_handler(data):
-    root = RootErrorsModel(data)
+def error_handler(data, strict=False):
+    root = RootErrorsModel(data, strict=strict)
     errors = [RequestError(**error_item) for error_item in root.error]
     if root.su:
         errors.extend([RequestError(**error_item)
@@ -139,4 +158,5 @@ def error_handler(data):
     'errors': error_handler,
     'transactions': transaction_list,
     'new_transaction': NewTransactionModel,
+    'refunds': RefundsModel,
 }
diff --git a/sofort/xml.py b/sofort/xml.py
index ff76d70..6820af4 100644
--- a/sofort/xml.py
+++ b/sofort/xml.py
@@ -59,7 +59,7 @@ def multipay(config):
 def transaction_request_by_params(params):
     root = etree.Element('transaction_request')
     root.set('version', '2')
-    for name, value in params.iteritems():
+    for name, value in params.items():
         if name == 'transaction':
             for transaction_id in value:
                 etree.SubElement(root, 'transaction').text = transaction_id
@@ -68,6 +68,27 @@ def transaction_request_by_params(params):
     return etree.tostring(root)
 
 
+def refunds_by_params(params):
+    root = etree.Element('refunds')
+    root.set('version', '3')
+    
+    sender = params.pop('sender')
+    sender_xml = etree.SubElement(root, 'sender')
+    for name, value in sender.items():
+        etree.SubElement(sender_xml, name).text = __serialize(value)
+
+    refunds = params.pop('refunds')
+    for refund in refunds:    
+        refund_xml = etree.SubElement(root, 'refund')
+        for name, value in refund.items():
+            etree.SubElement(refund_xml, name).text = __serialize(value)
+
+    for name, value in params.items():
+        etree.SubElement(root, name).text = __serialize(value)
+
+    return etree.tostring(root)
+
+
 def __compact_notification_addresses(addresses_):
     """
     Input::
diff --git a/tests/test_sofort.py b/tests/test_sofort.py
index 82d559b..2cc5a46 100644
--- a/tests/test_sofort.py
+++ b/tests/test_sofort.py
@@ -63,6 +63,23 @@ def test_pay(self):
         self.assertIsInstance(tran.payment_url, basestring)
         self.assertEqual('https://www.sofort.com/payment/go/136b2012718da0160fac20c2ec2f51100c90406e', tran.payment_url)
 
+    def test_refunds(self):
+        self.client._request_xml = MagicMock(return_value=REFUNDS_RESPONSE)
+        refunds_response = self.client.refunds(sender={
+            'holder': 'Max Samplemerchant',
+            'iban': 'DE71700111109999999999',
+            'bic': 'DEKTDE7GXXX'
+        }, refunds=[{
+            'transaction': '00000-00000-00000000-0000',
+            'amount': '1.11',
+            'comment': 'Order cancelled by user.',
+            'reason_1': 'OrderID 123456',
+            'reason_2': 'Refund'
+        }])
+        self.assertEqual('Max Samplemerchant', refunds_response.sender.holder)
+        self.assertEqual('00000-00000-00000000-0000', refunds_response.refund.transaction)
+        self.assertEqual('accepted', refunds_response.refund.status)
+
     def test_details_multiple_transaction_ids(self):
         self.client._request_xml = MagicMock(return_value=TRANSACTION_LIST_BY_IDS_RESPONSE)
         tran_id = [
@@ -479,6 +496,35 @@ def test_empty_response(self):
 </transactions>
 """
 
+REFUNDS_RESPONSE = u"""<?xml version="1.0" encoding="UTF-8" ?>
+<refunds version="3">
+      <sender>
+            <holder>Max Samplemerchant</holder>
+            <bank_name>Demo Bank</bank_name>
+            <iban>DE71700111109999999999</iban>
+            <bic>DEKTDE7GXXX</bic>
+      </sender>
+      <title>Test Refund December 5, 2013</title>
+      <pain>[Base-64 encoded content for PAIN-file]</pain>
+      <refund>
+            <recipient>
+                  <holder>Max Mustermann</holder>
+                  <bank_name>Demo Bank</bank_name>
+                  <iban>DE06000000000023456789</iban>
+                  <bic>SFRTDE20XXX</bic> 
+            </recipient>
+            <transaction>00000-00000-00000000-0000</transaction>
+            <amount>1.11</amount>
+            <comment>Order cancelled by user.</comment>
+            <reason_1>OrderID 123456</reason_1>
+            <reason_2>Refund</reason_2>
+            <time>2013-12-05T16:31:59+01:00</time>
+            <partial_refund_id>fb1244caad</partial_refund_id>
+            <status>accepted</status>
+      </refund>
+</refunds>
+"""
+
 NEST_ERRORS = """<?xml version="1.0" encoding="UTF-8" ?>
 <errors>
     <error>
diff --git a/tests/test_xml.py b/tests/test_xml.py
index 586a806..44b1a8b 100644
--- a/tests/test_xml.py
+++ b/tests/test_xml.py
@@ -62,6 +62,28 @@ def test_transactions_request_by_params(self):
             sofort.xml.transaction_request_by_params(params)
         )
 
+    def test_refunds_by_params(self):
+        from collections import OrderedDict
+        params = {
+            'sender': {
+                'holder': 'Max Samplemerchant',
+                'iban': 'DE71700111109999999999',
+                'bic': 'DEKTDE7GXXX'
+            }, 
+            'refunds': [{
+                'transaction': '00000-00000-00000000-0000',
+                'amount': '1.11',
+                'comment': 'Order cancelled by user.',
+                'reason_1': 'OrderID 123456',
+                'reason_2': 'Refund'
+            }]
+        }
+
+        self.assertXmlEqual(
+            REFUNDS_SAMPLE,
+            sofort.xml.refunds_by_params(params)
+        )
+
 
 MULTIPAY_SAMPLE = """
 <multipay>
@@ -96,3 +118,20 @@ def test_transactions_request_by_params(self):
     <number>10</number>
 </transaction_request>
 """
+
+REFUNDS_SAMPLE = """
+<refunds version="3">
+      <sender>
+            <iban>DE71700111109999999999</iban>
+            <holder>Max Samplemerchant</holder>
+            <bic>DEKTDE7GXXX</bic>
+      </sender>
+      <refund>
+            <comment>Order cancelled by user.</comment>
+            <reason_1>OrderID 123456</reason_1>
+            <amount>1.11</amount>
+            <transaction>00000-00000-00000000-0000</transaction>
+            <reason_2>Refund</reason_2>
+      </refund>
+</refunds>
+"""