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Void or refund customer payments in QuickBooks Online

by Intuit•636• Updated 4 days ago

Learn how to void or refund payments processed in QuickBooks Online.

If you have QuickBooks Payments, you can take and process your customer's credit card payments in QuickBooks Online. But sometimes, you might need to void or refund payments so your accounting stays accurate. Here’s how.

Find out when to void or refund a transaction

Note: If you already set up instant deposits, the payments are batched automatically.

Get personalized help categorizing transactions with Full-Service Bookkeeping.

To watch more how-to videos, visit our video section.

Void a sales receipt paid by credit card

  1. Sign in to QuickBooks Online .
  2. Go to Sales, then select the All sales tab.
  3. Find and select the sales receipt you want to void.
  4. Select More actions, then select Void.
  5. Select Void again to confirm.
    Note: If you want to make changes or print a copy, select Edit or Print from the ACTION column. You can also see other options when you select the ▼ dropdown.

Void an invoice paid by credit card

  1. Go to Sales, then select the All sales tab.
  2. Find and select the invoice you want to void.
  3. Select More actions, then select Void.
    Note: If you want to make changes or print a copy, select Edit or Print from the ACTION column. You can also see other options when you select the ▼ dropdown.

Tip: You can also void customer payments in the QuickBooks GoPayment mobile app.

Refund a customer's credit card payment

There are a few ways you can refund a payment in QuickBooks Online when you have QuickBooks Payments. Follow these steps based on how you received the payment.

Before you issue a refund, take note of the following:

  • Credit card refunds can only go back to the original card used for the payment. You might need to talk to your customer to verify this info.
  • You can only refund up to the amount of the original sale.
  • You can only refund a credit card payment within 90 days of the sale.

Currently, QuickBooks can process ACH refunds for payments that were made via ACH and included a convenience fee. ACH refunds for payments made without a convenience fee isn't possible yet. You can always refund your customer(s) through other means such as cash or check.

Need to refund an ACH payment that included a convenience fee? You can do this through the Merchant Service Center. Here's how.

Note: Make sure at least 5 business days have passed since the initial transaction.

To keep your business safe, be careful when you process a refund for an ACH payment outside QuickBooks. This will help prevent losses. Here are some signs of suspicious activities to watch out for:

  • Large transactions: Is the refund request on a large order?
    • Bad actors often target large transactions and increase the risk of suspicious activity.
  • Changes in order or payment details: Did the customer request a change to the order or cancel any part of the order after it was ordered?
    • Requests to change orders or payment details after they’ve been placed and invoiced could be an attempt to direct payments to bad actors.
  • Partial refund requests: Is the customer requesting a partial refund?
    • Bad actors may request partial refunds to legitimize the request to obtain additional funds at a later date.
  • Expressing urgency or pressure: Is the customer expressing a sense of urgency or pressure to have the refund processed?
    • If your customer pressures you to act quickly when processing a refund, consider this a red flag. Pause before you continue. If you have any doubts or feel uncomfortable about the legitimacy of a refund request, you can advise your customer to dispute the transaction through proper channels. You can then re-issue a new invoice with the new amount.

It's important to stay alert and take extra steps when ACH refund requests come in. This'll help reduce the risk of fraud.

Follow these steps to refund a transaction:

  1. Visit the Merchant Service Center. Or, in QuickBooks, go to Account & Settings, then the Payments tab, and select Manage account. This opens the Merchant Service Center in a new tab.
  2. Go to Processing Tools, then select Refund an eCheck.
  3. Set the date range for the payment you want to refund, then select Search.
  4. Find the transaction you want to refund or void, then select Submit.
    Note: If you do this within the same day as the transaction took place, the payment will be voided. If the action was initiated 5 or more days after the transaction, it'll be refunded. A refund can't be processed if it’s been less than 5 days since the transaction.

Refunding a transaction from the Merchant Service Center doesn't automatically update your accounting books. You need to do it manually in QuickBooks. Here's how.

  1. Select + New, then select Refund receipt.
  2. From the Customer ▼ dropdown, select the customer you want to give a refund.
  3. Fill out the fields with the same info on the original sale.
    Note: If you choose an inventory item, QuickBooks will put it back into inventory. If the item is defective or if you don’t want it added back to inventory, you can make an inventory adjustment.
  4. From the Refund from ▼ dropdown, select the account you issued the refund from.
  5. From the Save and new ▼ dropdown, select Save and close.
  6. Once the refund transaction happens, you’ll need to manually match the refund receipt to your bank transaction.
  1. Select + New, then select Refund receipt.
  2. From the Customer ▼ dropdown, select the customer you want to give a refund.
  3. Fill out the fields with the same info on the original sale.
    • To issue a refund to their credit card, select Credit card from the Payment method ▼ dropdown. Then, select Enter credit card details. Enter their credit card info then select Submit.
      Tip: You can also select Swipe card if you’re with the customer and you have a card reader.
    • To issue a refund to their bank account, select Direct Debit from the Payment method ▼ dropdown.
      Note: If you don't see Direct Debit in the Payment method ▼ dropdown, select + Add new, enter Direct Debit, then select Save.
  4. From the Refund from ▼ dropdown, select the account you want to issue the refund from.
  5. From the Save and new ▼ dropdown, select Save and close.

You can refund a customer who paid you with a credit card from the sales receipt, invoice, or associated payment.

  1. Go to Sales, then select the All sales tab.
  2. Find and select the sales receipt, invoice, or payment you want to apply a refund to.
  3. In the footer, select More, then select Refund.
  4. Review the transaction details, then select Save and close.
    Note: If you need to issue a partial refund, you can edit the items or amount.
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