How to refund an unapplied credit card payment? When using refund receipt, I cannot apply to Accounts receivable because QBO request product/services to be completed

Hi stephanie-fieve-,

Welcome to Community!  Recording a refund for an unapplied credit card payment ensures your records are up to date and accurate.  With QuickBooks Online Payments, there's two ways you can perform this task.  I'd be happy to go over both options for you.

If you're able to void the transaction before the payment's been processed, there's no fee.  Here's how to void an invoice paid by credit card:

1. From the left menu, select Sales and then Invoices

2. Choose the invoice to void the payment for

3. Select Void from the dropdown arrow in the Action column

4. Hit Yes

The status will now show as Voided.

To refund the payment for a sales receipt, follow these steps:

1. Open + New, and select Refund receipt

2. Choose the customer you want to refund from the Customer ▼ dropdown

3. Complete all fields using the same information from the original sale

4. In the Payment method, select Credit card

5. For Refund from, choose the payment method and account you'll be refunding the customer from

6. When finished, hit Save and close.

You're ready to send or print the receipt.

Here's an article to assist you with voiding or refunding customer payments.

If you have any other questions, please reach back out.  We'd be glad to assist!

My issue is 2 payments have been received for one invoice, so there is no invoice to apply the second payment to. After the refund receipt has been processed, I am unable to apply this refund to the unapplied payment received from the customer, leaving an open balance in the account.

How can I resolve it?

Hi stephanie-fieve-,

Thanks for reaching back out with regards to the unapplied payment that you've received from your customer.  The unapplied payment needs to be linked to an invoice, once you've refunded it, it should show the invoice as 'due' again.  Based on your description, it seems the payment was a duplicate and should be deleted. 

To delete the invoice and payment:

1. Go to Sales tab and choose Customers

2. Click on the customer's name

3. On the Transaction List, open the payment you've processed

4. At the bottom, click on More and select Delete

5. Hit Yes to confirm

Repeat the process for the invoices. 

If you need additional assistance, please contact us so we can work together with you in real time and ensure you're able to move on with your daily bookkeeping tasks.

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