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ANACNRVP
Level 2

Funded Credit Card Refund

I have a customer who double paid using the credit card.  I didn't realize the error until it was deposited into my account (funded).  I want to issue a refund using a check (there is an additional charge to refund via credit card).  Currently, the account is showing a negative balance, meaning I owe money.  I created a refund receipt, but that didn't decrease the negative balance.  

Things I need to have happen with one or more transactions:

Decrease the customer's negative balance

Issue a refund via check

Charge the QBO processing fee I paid

Decrease sales income account

 

1 Comment
Regina_Lend_A_Hand_Accounting
Level 9

Funded Credit Card Refund

1. Refund receipts are used to account for money that has been received for a customer invoice payment that you are refunding back to them. They are not used to refund invoice overpayments.

 

2. Customer overpayments that are refunded are recorded in QBO as checks against Accounts Receivable and then applied to clear the negative balance in the customer account.

 

3. You can offset the amount of the overpayment refund to the customer to the expense account you use for bank fees.

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