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Level 1

customer credit card refund

I use a third party to process credit cards.  A customer was refunded and the third party merchant service company included the refund along with other transactions.  


I have tried Refunds and Credit steps offered in QuickBooks help screen but then a payment appears in the checking registry.


But since the refund is part of a day's the merchant service company's deposit into the checking, I need to record the refund on the deposit slip.







5 Comments 5
QuickBooks Team

customer credit card refund

Hi there, @Smak1.


You can enter a negative amount for your deposit to denote the customer refund. Let me show you how.


To process a refund, you may follow these steps:

  1. Click on Banking from the menu bar.
  2. Choose Make Deposits.
  3. Enter the customer name under the Receive From column.
  4. In the From Account column, choose the account where funds will be taken out. And the second line is the expense account.
  5. Under the Amount column, enter a positive number for the first line, and a negative amount for the second line.
  6. Click on Save & Close.

Feel free to leave a comment below if you have any other concerns. I'll be here to assist you.

Level 1

customer credit card refund

I followed your steps and it shows correctly on the balance sheet for the item.


What do I do in the Customer's transaction area?  There is the original invoice, credit card payment but it does not show the customer was given a refund.


Thank you.

QuickBooks Team

customer credit card refund

Pleased to hear again from you, @Smak1.


Let me take this opportunity to furnish you with information on how you can issue a credit memo to your customer.


Here's how to create credit memo:

  1. Click the Customers menu.
  2. Choose Create Credit Memo.
  3. Select the name of the Customer:Job.
  4. Enter the credit memo details.
  5. Click Save and Close.

There's no need for us to write a check to denote the refund amount since it's already recorded in your QuickBooks when you made a deposit as adviced by my colleague, @Alessandra_B.


Let's proceed to linking the credit memo to the unapplied refund check. Here's how:

  1. Go to the Customer menu.
  2. Choose Receive Payments.
  3. From the Received from drop-down, select the Customer.
  4. Go to Discounts And Credits.
  5. In the Available Credits section, mark the check you created, then select Done.
  6. Select Save & Close.  



That should do it! Don't hesitate to visit here in the Community if you have other questions about processing customer's refund. I'm always here to help.


Level 1

customer credit card refund

When I followed the steps for the credit - it doubled the customer's credit amount.


Should I void the original invoice first?  

Kristine Mae
QuickBooks Team

customer credit card refund

You don't have to void the original invoice, Smak1.


I've read your original post. I was wondering why the refund showed as a deposit. A refund shouldn't show as a deposit since this isn't an income transaction. You may want to disregard how it was presented by your third-party merchant service company so you can correctly record the refund in QuickBooks. 


In your case, you'll have to create a credit memo, and choose the give a refund option. 


First, you'll have to delete the deposit transaction. Here's how:

  1. Open it.
  2. Press Ctrl + D on your keyboard.
  3. You'll receive a message, "Are you sure you want to delete this transaction?", then choose OK.

Then, let's edit the credit memo, and choose the give a refund option. This way, it will not double the customer's credit amount. Here's how:

  1. Open the credit memo.
  2. Click Use credit to give refund.
  3. In the Issue a refund window, choose the account you're using for the refund.
  4. Click OK, then click Save & Close.

I've attached screenshots as your reference. 







If you have more questions, you can always get back to this thread. 

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