diff --git a/migrations/versions/f3a1c7b9e2d4_add_refunds_table.py b/migrations/versions/3a0fbd387f10_add_refunds_table.py
similarity index 94%
rename from migrations/versions/f3a1c7b9e2d4_add_refunds_table.py
rename to migrations/versions/3a0fbd387f10_add_refunds_table.py
index e0b3c823..e53e4484 100644
--- a/migrations/versions/f3a1c7b9e2d4_add_refunds_table.py
+++ b/migrations/versions/3a0fbd387f10_add_refunds_table.py
@@ -1,8 +1,8 @@
 """add refunds table
 
-Revision ID: f3a1c7b9e2d4
-Revises: e5a6b7c8d9f0
-Create Date: 2026-09-07
+Revision ID: 3a0fbd387f10
+Revises: a3f1b6c204de
+Create Date: 2026-09-16
 
 """
 
@@ -10,8 +10,8 @@ import sqlalchemy as sa
 import sqlmodel
 from alembic import op
 
-revision = "f3a1c7b9e2d4"
-down_revision = "e5a6b7c8d9f0"
+revision = "3a0fbd387f10"
+down_revision = "a3f1b6c204de"
 branch_labels = None
 depends_on = None
 
diff --git a/routstr/balance.py b/routstr/balance.py
index 7c37331a..2f4140cf 100644
--- a/routstr/balance.py
+++ b/routstr/balance.py
@@ -358,10 +358,15 @@ async def refund_wallet_endpoint(
     destination = requested or key.refund_address
 
     if key.total_balance <= 0:
-        if paid := await refund.latest_terminal(session, key):
+        paid = await refund.latest_terminal(session, key)
+        if paid and paid.method == "lightning":
             return refund.describe(paid)
+        # cashu_transactions tracks collection and sweeping, so it takes
+        # precedence; the claim row covers a token whose ledger write failed.
         if persisted := await _get_persisted_api_key_refund(key, session):
             return persisted
+        if paid:
+            return refund.describe(paid)
 
     if key.reserved_balance > 0:
         # Release only durable reservations old enough to be stale. A newer
diff --git a/routstr/refund.py b/routstr/refund.py
index 0ff8b9a5..5c328a57 100644
--- a/routstr/refund.py
+++ b/routstr/refund.py
@@ -206,13 +206,17 @@ async def hold(session: AsyncSession, refund: Refund, quote_id: str | None) -> N
 
 
 async def latest_terminal(session: AsyncSession, key: ApiKey) -> Refund | None:
-    """Latest paid Lightning refund. Cashu is served from cashu_transactions."""
+    """Latest paid refund of either method.
+
+    Cashu tokens are normally served from cashu_transactions, which tracks
+    collection and sweeping; the claim row is the fallback when that ledger
+    write failed after the token was already issued.
+    """
     result = await session.exec(
         select(Refund)
         .where(Refund.api_key_hashed_key == key.hashed_key)
         .where(Refund.status == "paid")
-        .where(Refund.method == "lightning")
-        .order_by(col(Refund.created_at).desc())
+        .order_by(col(Refund.created_at).desc(), col(Refund.updated_at).desc())
     )
     return result.first()
 
@@ -230,8 +234,7 @@ def describe(refund: Refund) -> dict[str, str]:
     return body
 
 
-async def execute(session: AsyncSession, refund: Refund) -> dict[str, str]:
-    amount = amount_in_unit(refund.amount_msats, refund.unit)
+async def _pay_lightning(session: AsyncSession, refund: Refund) -> None:
     quote_id: str | None = None
 
     async def capture_quote(quote: str) -> None:
@@ -240,31 +243,13 @@ async def execute(session: AsyncSession, refund: Refund) -> dict[str, str]:
         await record_quote(refund, quote)
 
     try:
-        if refund.method == "lightning":
-            await send_to_lnurl(
-                amount,
-                refund.unit,
-                refund.mint_url,
-                str(refund.destination),
-                on_melt_quote=capture_quote,
-            )
-            await settle(session, refund, quote_id=quote_id)
-        else:
-            token = await send_token(amount, refund.unit, refund.mint_url)
-            mint_url = token_mint_url(token, refund.mint_url)
-            await settle(session, refund, token=token, mint_url=mint_url)
-            await store_cashu_transaction(
-                token=token,
-                amount=amount,
-                unit=refund.unit,
-                mint_url=mint_url,
-                typ="out",
-                collected=False,
-                source="apikey",
-                api_key_hashed_key=refund.api_key_hashed_key,
-            )
-            refund.token = token
-            refund.mint_url = mint_url
+        await send_to_lnurl(
+            amount_in_unit(refund.amount_msats, refund.unit),
+            refund.unit,
+            refund.mint_url,
+            str(refund.destination),
+            on_melt_quote=capture_quote,
+        )
     except MeltOutcomeAmbiguousError as e:
         await hold(session, refund, quote_id)
         logger.error(
@@ -276,6 +261,53 @@ async def execute(session: AsyncSession, refund: Refund) -> dict[str, str]:
                 "quote_id": quote_id,
             },
         )
+        raise
+    await settle(session, refund, quote_id=quote_id)
+
+
+async def _pay_cashu(session: AsyncSession, refund: Refund) -> None:
+    amount = amount_in_unit(refund.amount_msats, refund.unit)
+    token = await send_token(amount, refund.unit, refund.mint_url)
+    mint_url = token_mint_url(token, refund.mint_url)
+    await settle(session, refund, token=token, mint_url=mint_url)
+    refund.token = token
+    refund.mint_url = mint_url
+
+
+async def _record_cashu_payout(refund: Refund) -> None:
+    """Ledger write for an issued token; the claim row already holds the token,
+    so a failure here must not fail the request or release the balance."""
+    try:
+        await store_cashu_transaction(
+            token=str(refund.token),
+            amount=amount_in_unit(refund.amount_msats, refund.unit),
+            unit=refund.unit,
+            mint_url=refund.mint_url,
+            typ="out",
+            collected=False,
+            source="apikey",
+            api_key_hashed_key=refund.api_key_hashed_key,
+        )
+    except Exception as e:
+        logger.error(
+            "refund token issued but cashu transaction was not recorded",
+            extra={
+                "refund_id": refund.id,
+                "error": str(e),
+                "error_type": type(e).__name__,
+                "key_hash": refund.api_key_hashed_key[:8],
+            },
+        )
+
+
+async def execute(session: AsyncSession, refund: Refund) -> dict[str, str]:
+    try:
+        if refund.method == "lightning":
+            await _pay_lightning(session, refund)
+        else:
+            await _pay_cashu(session, refund)
+    except MeltOutcomeAmbiguousError:
+        # Already held by _pay_lightning; releasing here would pay out twice.
         raise HTTPException(
             status_code=502,
             detail=(
@@ -303,6 +335,9 @@ async def execute(session: AsyncSession, refund: Refund) -> dict[str, str]:
             raise HTTPException(status_code=503, detail="Mint service unavailable")
         raise HTTPException(status_code=500, detail="Refund failed")
 
+    if refund.method == "cashu":
+        await _record_cashu_payout(refund)
+
     refund.status = "paid"
     refund.claimed_at = None
     logger.info(
diff --git a/scripts/refund_token_to_lightning.py b/scripts/refund_token_to_lightning.py
new file mode 100644
index 00000000..df5979d3
--- /dev/null
+++ b/scripts/refund_token_to_lightning.py
@@ -0,0 +1,65 @@
+"""Redeem a cashu token into a balance and pay it out to a Lightning address.
+
+Usage:
+    python scripts/refund_token_to_lightning.py <cashu-token> <lightning-address> [--url http://localhost:8000]
+
+Steps:
+    1. POST /v1/balance/create   redeems the token into a fresh API key
+    2. POST /v1/balance/refund   pays the full balance to the Lightning address
+
+A 502 from the refund means the melt was dispatched but unconfirmed; the
+balance is withheld until the server reconciles it. Re-run with the printed
+API key to check whether it settled.
+"""
+
+import argparse
+import sys
+
+import httpx
+
+
+def create_balance(client: httpx.Client, token: str) -> str:
+    response = client.post("/v1/balance/create", json={"initial_balance_token": token})
+    response.raise_for_status()
+    data = response.json()
+    print(f"Redeemed token: balance {data['balance']} msats, key {data['api_key']}")
+    return str(data["api_key"])
+
+
+def refund_to_lightning(client: httpx.Client, api_key: str, address: str) -> dict:
+    response = client.post(
+        "/v1/balance/refund",
+        headers={"Authorization": f"Bearer {api_key}"},
+        json={"lightning_address": address},
+    )
+    if response.status_code >= 400:
+        print(f"Refund failed ({response.status_code}): {response.text}")
+        sys.exit(1)
+    return dict(response.json())
+
+
+def main() -> None:
+    parser = argparse.ArgumentParser(description=__doc__.splitlines()[0])
+    parser.add_argument("token", help="cashu token, or sk-... key from a prior run")
+    parser.add_argument("lightning_address", help="Lightning address or LNURL")
+    parser.add_argument("--url", default="http://localhost:8000", help="routstr URL")
+    args = parser.parse_args()
+
+    with httpx.Client(base_url=args.url, timeout=120.0) as client:
+        api_key = (
+            args.token
+            if args.token.startswith("sk-")
+            else create_balance(client, args.token)
+        )
+        result = refund_to_lightning(client, api_key, args.lightning_address)
+
+    amount = result.get("sats") or result.get("msats")
+    unit = "sats" if "sats" in result else "msats"
+    print(
+        f"Refund {result['refund_id']} {result['status']}: "
+        f"{amount} {unit} -> {result.get('recipient', args.lightning_address)}"
+    )
+
+
+if __name__ == "__main__":
+    main()
diff --git a/tests/integration/test_refund_claims.py b/tests/integration/test_refund_claims.py
index dac2f70a..57e66795 100644
--- a/tests/integration/test_refund_claims.py
+++ b/tests/integration/test_refund_claims.py
@@ -581,3 +581,38 @@ async def test_endpoint_refund_while_ambiguous_returns_409(
     assert exc_info.value.status_code == 409
     send.assert_not_awaited()
     assert (await _load_key(integration_session)).balance == 2_000_000
+
+
+@pytest.mark.asyncio
+async def test_cashu_token_survives_failed_ledger_write(
+    integration_session: AsyncSession, patched_db_engine: None
+) -> None:
+    """The token is issued once the mint signs it; a failed cashu_transactions
+    insert must neither fail the request nor release the balance, and a retry
+    must replay the token from the claim row."""
+    await _seed_key(integration_session)
+    with (
+        patch("routstr.refund.send_token", AsyncMock(return_value="cashuAtoken")),
+        patch("routstr.refund.token_mint_url", lambda token, mint: mint),
+        patch(
+            "routstr.refund.store_cashu_transaction",
+            AsyncMock(side_effect=RuntimeError("db down")),
+        ),
+    ):
+        first = await refund_wallet_endpoint(
+            authorization=f"Bearer sk-{KEY_HASH}",
+            x_cashu=None,
+            session=integration_session,
+        )
+    assert isinstance(first, dict)
+    assert (first["token"], first["status"]) == ("cashuAtoken", "paid")
+    assert (await _load_key(integration_session)).balance == 0
+
+    second = await refund_wallet_endpoint(
+        authorization=f"Bearer sk-{KEY_HASH}",
+        x_cashu=None,
+        session=integration_session,
+    )
+    assert isinstance(second, dict)
+    assert second["refund_id"] == first["refund_id"]
+    assert second["token"] == "cashuAtoken"