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Lisa1208
Level 1

QuickBooks Online Customer Credit Card Refund & Matching Bank Transactions

Hello,

 

Here is my situation. A customer paid in full for a job using a credit card. We use Chase for our credit card processing. Each day the "batch" is processed, then deposited into our account a day or two later. I match the batch to the invoices paid. 

My company owed the customer a partial refund. We charged back the amount due. When I went to match the batch which included the refund, I could not because I do not know how to enter the refund so that it shows up when I match the batch to what's in QuickBooks. 

Any help is appreciated!

Thank you,
Lisa

3 Comments
katherinejoyceO
QuickBooks Team

QuickBooks Online Customer Credit Card Refund & Matching Bank Transactions

Hello there, @Lisa1208.

 

Thanks for visiting the Community. I appreciate you sharing the detailed information on your concern.

 

We can use the Refund receipt to enter the repayment on your customer's credit card. Then, match it with the chargeback transaction posted in the bank feeds. 

 

Let me show you how: 

 

  1. Click + New menu, then select Refund receipt.
  2. In the Customer drop-down list, choose the customer you want to give a refund to.
  3. Enter all other necessary info from the original sale in the fields.
  4. Select the Payment method in the drop-down menu, and the account to issue in the Refund From drop-down arrow.
  5. Enter the product/service you’re refunding and the amount (partial refund), then Save and close

 

You can now match and categorize this transaction with your bank feeds. 

 

For future reference, read through this article: Reconcile an account in QuickBooks Online. It helps you learn about the basic steps in matching your actual bank statement with your QuickBooks transactions to make sure they're balanced. 

 

Let me know if you have additional questions. We're always delighted to help. 

Lisa1208
Level 1

QuickBooks Online Customer Credit Card Refund & Matching Bank Transactions

Hello Katherine,

 

Thank you for your response. 

 

I am not trying to reconcile a bank statement to QuickBooks. We download banking transactions daily. When the credit card processing company deposits money into our account, I match that deposit with credit card transactions (customer payments). When I have to credit money back to a customer is the problem. Here is a specific example:

Customer paid $2,500.00

Customer refunded $170.95

Deposit to our account: $2,329.05

 

When I go to match that deposit, I am unable to do so - the $2,500.00 payment does not show up in the "Find Match" list, and I do not know how to record the refund so that it shows up in the list. 

 

Any help you can provide would be appreciated.

Thank you

Lisa

FritzF
Moderator

QuickBooks Online Customer Credit Card Refund & Matching Bank Transactions

Thanks for getting back to us, @Lisa1208.

 

Based on that information, you can add the refund amount as a negative (-170.95) line item when depositing the payments in QuickBooks Online (QBO). This way, you'll be able to match the deposited transactions to the downloaded ones.

 

Here's how:

 

  1. In QBO, go to the + New option at the top left to get to the Bank Deposit.
  2. In the Account drop-down, pick the bank where you want it to be deposited.
  3. Place a checkmark on the payments in the Select the payments included in this deposit section.
  4. In the Add funds to this deposit section, select the customer's name in the Received From field.
  5. For the Account, choose an sales/income account, then enter the amount as negative.
  6. Once done, hit Save and close

 

 

For more information, consider checking out this article: Record and make Bank Deposits in QuickBooks Online.

 

After that, you can now proceed with matching the transactions. Please refer to this article for further guidance: Categorize and match online bank transactions in QuickBooks Online.

 

Please let me know if you have any other questions or concerns by clicking the Reply button below. I'll be here to assist. Have a great rest of the day!

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