We use a 3rd party to process our credit card receipts and refunds. When we need to refund a customer, that refund deducted from our NET daily deposit into the bank.

Welcome to the Community, @melissa-pennflee. I’ll assist you today, so you’re able to manage your customer credit card refund in QuickBooks Online. 

Since you’re using Credit Card, you can manually record a refund receipt in QBO. Here’s how:

1. Select + New.
2. Select Refund receipt.
3. Select the customer you want to refund from the Customer ▼ dropdown.
4. Enter the details in the fields using the same info from the original sale. To credit back their credit card, in Payment method, select Credit card. To credit back their bank account, in Payment method, select Bank.
5. In Refund from, select which payment method and account you wish to refund the customer from.
6. Select Save and close.

Also there are some other ways to give refunds in QBO. You can check out this article here for alternative ways based on how you processed the transaction: Void or refund customer payments in QuickBooks Online.

To know more about managing your receipts and transactions in QBO, you can open these resources here:

• Record a customer refund in QuickBooks Online
• Email receipts and bills to QuickBooks Online

Get back to me here if you have further questions about managing your QBO transactions. I'd be more than happy to answer it for you. Have a nice day.

Thanks for your reply.  However, I am not having an issue creating the customer refund receipts. 

The problem is that I cannot match up my credit card bank deposit because it is a net of all receipts less all refunds daily.  When I am matching a bank deposit to include the multiple individual customer credit card receipts, there is no way to choose to deduct a customer card refund from that bank deposit.

How do I show that I have used that credit card refund as a part of the bank deposit?

Thank you.

Thanks for the quick response, @melissa-pennflee. I'm here to share some additional information on how you can match your bank deposits in QuickBooks Online (QBO).

In QBO, we can add the customer's refund when we record a bank deposit. Here's how:

1. Click the +New button, then select Bank deposit.
2. Choose the affected bank in the Account field and the Date.
3. Place a checkmark for each transaction under Select the payment included in this deposit section.
4. Go to the Add funds to this deposit section.
5. Enter the affected account for the refund in the ACCOUNT column. 
6. Enter the refund amount as a negative.
7. Fill in the necessary details, then select Save and close.

After that, you can now match it to the bank deposit with the total net amount. For the detailed process, you can use this article: Categorize and match online bank transactions in QuickBooks Online.

Also, the reconcile an account in QuickBooks Online guide tackles how to match your bank or credit card statements. You’ll also learn about reconciling accounts connected to online banking as well as the ones that are not linked to the bank feeds.

Reach out to me in the comment section below if you have any other questions or concerns about your bank deposits. I'm more than willing to help. Keep safe!

Hi Melissa,.

It looks like the QB advisor didn't fully understand your issue.

I do as I have the same issue and the problem with the adviser solution is that  the refund will appear twice as it would have been credited/refunded when you processed it.

I have found the only solution is to use resolve in matching to credit the difference and then do a journal to add back to sales.