Thanks for getting back to us, @jenuneekor.

The steps shared by my colleague @IamjuViel for using a refund receipt in QuickBooks Online are for recording purposes only. You need to send an actual refund to the customer’s account to reverse the transaction.

Here’s how:

1. Log in to QuickBooks Payments.
2. Click the Processing Tools drop-down and select Reverse a Transaction.
3. Enter the details asked and click Search.
4. Select the transaction you want to reverse and refund.
5. Hit Submit.

Check out the Void or fully refund a transaction section in this article for more information: Void or refund transactions in QuickBooks Payments. 

That should get you pointed in the right direction.

Keep me updated on how that goes. I’m always here to keep helping. Have a good one!