cancel
Showing results for 
Search instead for 
Did you mean: 
Service
Level 3

How to enter credit card refund into QBO relating to dispute?

Two months previous I accepted credit card funds for a sales receipt. Yesterday I received notice that the credit card transaction was disputed and the amount was removed from my account against other incoming credit card income. It was all a mistake, but that is another story. 

 

I was able to clear up the situation with the customer and they paid the amount again, on the same day that the chargeback showed up with Square. So actually I could do nothing, since the two amounts equal zero. But if I wanted to create entries for the reversal and the repayment, how would I do that? This would be important if the chargeback and repayment happened on different days. 

 

 

3 Comments 3
Candice C
QuickBooks Team

How to enter credit card refund into QBO relating to dispute?

Good Morning, @Service

 

I hope your day is going well. You'll need to use the refund a credit card payment feature within QuickBooks Online. Before doing the steps below, I recommend contacting our Merchant Services Support Team to be sure. 

 

  1. Press the +New button on the left-hand menu bar. 
  2. Pick Refund Receipt
  3. Enter all the required information needed to complete the transaction. 
  4. Click Save and Close or Save and New

 

If you want to learn more about refund receipts, check out this link. 

 

I'm only a post away if you need me. Have a wonderful day!

Service
Level 3

How to enter credit card refund into QBO relating to dispute?

Did you even read my question?

Ryan_M
QuickBooks Team

How to enter credit card refund into QBO relating to dispute?

Hi @Service,

 

Allow me to join this conversation and share insight into your query. 

 

You can create a credit memo transaction. This will serve as the chargeback transaction for your customer.

 

Here's how:

 

  1. Go to the + New menu.
  2. Select Credit memo.
  3. Choose the customer in question on the Customer drop-down menu.
  4. Edit the Credit Memo Date as to when the chargeback happened. 
  5. Enter the same product or service used on the original sales receipt you stated above under the Product/Service drop-down menu.
  6. Type in the same amount found on the original sales receipt transaction as well. 
  7. When done, click Save and close.

What you need to do next is to create a sales transaction that can link the credit memo created above. An invoice is the best option to serve this purpose. 

 

Follow these steps:

 

  1. Click the + New menu.
  2. Select Invoice.
  3. Enter the customer in question under the Customer drop-down menu.
  4. Edit the Invoice date to when you received the repayment.
  5. Type in the same product or service found on your original sales receipt under the Product/Service drop-down menu.
  6. Put in the correct amount as well under the Amount column. 
  7. When done, tap Save.

Assuming you're still on the invoice page, follow the steps below:

 

  1. Click the Receive payment button.
  2. Under the Credits section, ensure the credit memo create earlier is checked. 
  3. Tap Save and close.

With this, you've recorded the chargeback along with the repayment. 

 

On the other hand, if you need to record a vendor refund, see this article for the steps: Enter a refund from a vendor. Related links to this process can be found on this page as well. 

 

Have other questions in mind? Place them in the comments below, and I'll get back to you. 

Need to get in touch?

Contact us
Sign in for the best experience
Ask questions, get answers, and join our large community of QuickBooks users.
Sign In / Sign Up