diff --git a/app/models/spree/payment.rb b/app/models/spree/payment.rb
index d1ebf2aaeb..8d66fc2757 100644
--- a/app/models/spree/payment.rb
+++ b/app/models/spree/payment.rb
@@ -147,7 +147,7 @@ module Spree
         adjustment.originator = payment_method
         adjustment.label = adjustment_label
         adjustment.save
-      elsif payment_method.present?
+      elsif !processing_refund? && payment_method.present?
         payment_method.create_adjustment(adjustment_label, self, true)
         adjustment.reload
       end
@@ -163,6 +163,10 @@ module Spree
 
     private
 
+    def processing_refund?
+      amount.negative?
+    end
+
     # Don't charge fees for invalid or failed payments.
     # This is called twice for failed payments, because the persistence of the 'failed'
     # state is acheived through some trickery using an after_rollback callback on the
diff --git a/spec/models/spree/payment_spec.rb b/spec/models/spree/payment_spec.rb
index 420160ae60..49b54b3256 100644
--- a/spec/models/spree/payment_spec.rb
+++ b/spec/models/spree/payment_spec.rb
@@ -405,6 +405,19 @@ describe Spree::Payment do
           end
         end
 
+        context "if payment method has any payment fees" do
+          before do
+            expect(payment.order).to receive(:outstanding_balance).at_least(:once) { 10 }
+            expect(payment).to receive(:credit_allowed) { 200 }
+          end
+
+          it "should not applied any transaction fees" do
+            payment.credit!
+            expect(payment.adjustment.finalized?).to eq(false)
+            expect(order.all_adjustments.payment_fee.length).to eq(0)
+          end
+        end
+
         context "when outstanding_balance is equal to payment amount" do
           before do
             payment.order.stub outstanding_balance: payment.amount