Customer Refund and Fee

Entering a refund for your customer is so easy, truk4u.

You'll want to enter a refund for your credit card or an ACH payment for a sales receipt. Please follow the steps below on how to do this: 

1. Click + New.
2. Select Refund receipt.
3. Select the customer you want to refund from the Customer ▼ dropdown.
4. Fill out the fields using the same info from the original sale. To credit back their credit card, in Payment Method, choose QuickBooks Credit - Credit card. To credit back their bank account, in Payment Method, choose QuickBooks Credit - Bank.
5. In Refund From, choose which payment method and account you wish to refund the customer from.
6. Click Save and close.

To refund an invoice that the customer already paid:

1. Click + New.
2. Select Refund receipt.
3. Select the customer you want to refund from the Customer ▼ dropdown.
4. Fill out the fields using the info from the original sale.
5. Choose which payment method and account you wish to refund the customer from. Note: You can't refund an ACH payment to the customer’s bank account. You'll need to choose another refund method (cash, check, or store credit).
6. Click Save and close.

For reference, you can run and customize reports in QuickBooks Online to show the information you need.

Drop a comment on this thread if you have other questions about refunds. I'm here to assist you further for any other queries. 

Thank you for the reply, but it didn’t answer my question as to what happens to the fee I paid.

Hi there, @truk4u.

Allow me to provide some clarification about your credit card processing fee concern. 

If you are using the merchant services when processing payments for invoices, being able to add the credit card processing fee for your customer's invoice isn't applicable. This is because the credit card processing fees are charged every time you do a transaction. 

For example, when you process an invoice for $5145 (invoice amount and credit card processing fee) you'll still be paying another 2.9%, which would be a total of $149.21. That said, you won't be able to receive the full invoice amount.

To learn more how credit card processing fee works in QuickBooks, please check out these articles: 

• Everything You Ever Wanted to Know About Credit Card Fees.
• A quick guide to Credit Card processing.

Please let me know if you have more questions about this concern. I'm always here to help. Take care!

Again, thank you for the response, I understand your comments. Using Merchant Services (payments) I see a the option to reverse a credit card transaction. Assuming I have the original payments put in my Quickbooks Account instead of my Bank, would those charges be credited back to my customer via his credit card? In other words, use the reverse credit card instead of refunding via my checking account.

Thanks, 

Yes, the charge will be credited back to your customers' credit card, truk4u.

If you choose to reverse a credit card transaction, here are the steps you can follow:

1. Log into your QuickBooks Payments account.
2. Choose Processing Tools, then Reverse a transaction.
3. Find the transaction you want to reverse, then click Search.
4. Select the transaction from the list, then click Submit.

The credit can arrive within 2-4 business days or not until the end of your customer's billing cycle. The bank that issued your customer's credit card controls this timing.

Also, transactions processed online in the Merchant Service Center can't be downloaded to QuickBooks. To keep your accounts up-to-date, enter a reversal manually in QuickBooks by creating a refund.

Let me know if you need anything else or post again if you have any other QuickBooks issues. I'll be right here to help you.

Mary Ann,

I have not used the Quickbooks Cash Account, the balance is 0.00 and I have canceled the debit card as instructed. I now want the Quickbooks Cash Account to be deleted so I don't see it on my screen. Terry in customer service tried to help, but was unsuccessful. Can you figure a way to remove this account from my screen? There is no option to delete the Quickbooks Cash Account.

Thanks,

Tom 

Thanks for getting back and providing a screenshot, @truk4u.

Let me share information with you about deleting accounts connected to online banking in QuickBooks Online (QBO).

Once you delete an account, it's permanent, and you'll no longer be able to see it on menus or lists. To delete an account, you can make it inactive. 

Here's how:

1. Click the Gear icon on the top menu.
2. Select Chart of Accounts.
3. Choose the account you'll want to remove.
4. From the Action section, click the drop-down arrow▼ and select Make Inactive.
5. Hit Yes to confirm.

For more details about this process, check out this article: Delete an account on your chart of accounts in QuickBooks Online.

If the inactive accounts contain transactions, they will remain in your company file including your reports. If you don't want to show them in the report, you can follow the steps and details in this resource: Remove deleted accounts from reports.

Please let me know this goes on your end. I want to ensure this is taken care of. Have a great day.

It won't allow me to make inactive. Please see attachment.

Thanks, 

Hi there, truk4u.

Thank you for sharing that screenshot. That helps us diagnose what's going on. The reason you're unable to make it inactive is because its in use with one of your sales lines. So, in order to make the account inactive you'll first need to remove whichever sales line is currently using it. If you aren't sure which one is using it, don't worry, you can reach out to our support team and they can guide you through click-by-click on how to find the sales line, remove it and then inactivate the cash account. To reach them, you can follow these steps:

1. Sign in to your QuickBooks Online company.
2. Select Help (?) at the top right.
3. Enter your concern, then select Let's talk.
4. Select Contact Us to connect with a live support agent.
5. Choose a way to connect with us:
   • Start a chat with a support expert.
   • Get a callback from the next available expert.

I'm also including a few helpful articles for you to check out below.

• Temporarily remove deleted accounts from reports
• Completely remove a deleted account from the reports

Thank you for your time and I hope you have a lovely day.

Seems like your getting a lot of "canned responses" for the QuickBooks team. QuickBooks gouges you on credit card refunds. You will pay the original credit card fee then pay the same fee if you refund the money back to your customers credit card. So if it cost you $90 for the original fee it will cost you another $90 to refund the payment back to your customers credit card for a total of $180 in fees!  

It happened to me...I had a credit card fee of $144. I had to refund the sale back to my customer and I got changed the same $144 fee. Total price gouging! The customer service rep I talked to said it would be better to refund with a check but you still would be out the original fees.

There should be a law against this abuse from intuit and quickbooks!!!

This JUST happened to me! I had to refund $8,900 back to my customer and he used an AMEX credit card. Was adamant it go back to the card so I went through Merchant Services and reversed the transaction. First time ever doing this. I don't refund much but this was a special circumstance. There was no mention during this process that ANOTHER fee would incur, I even looked online to find forums. Wish I had found this one before I made the reversal. On my invoices I mention all CC transactions will incur up to a 3% CC fee if needing a refund so my customers know they will be charged and I won't have to loose that money. I hate doing that but if I am not going to make the sale why should I have to loose money. I try to encourage ACH transfers to negate this abhorrent fee system CC companies force on us. This is ridiculous though. It's an algorithm system. The work is done in seconds all by machines! So I am out $300 bucks, would be $600 if I didn't already have an agreement with my customers. How can this be okay!?

I am sincerely considering moving my payment system out of Quickbooks and using Square or even Paypal. Anything really that doesn't take advantage of the small business.

What petition do we have to sign to fight against these fees?

Yes, I would agree- ach transfer is useful but it is not as safe as a credit card transaction. I recently had someone ach transfer via QB- their bank confirmed they had the money so QB marked it as paid. However, when QB went to actually debit the money from their account hours later they had already transferred the money out of their bank account. I had already shipped the product when we found out that QB had not actually processed the transaction. Out $500 for that one. 

I agree tho, these companies are f-up.

Yes, I would agree- ach transfer is useful but it is not as safe as a credit card transaction. I recently had someone ach transfer via QB- their bank confirmed they had the money so QB marked it as paid. However, when QB went to actually debit the money from their account hours later they had already transferred the money out of their bank account. I had already shipped the product when we found out that QB had not actually processed the transaction. Out $500 for that one. 

I agree tho, these companies are messed up.

Yes this is total BS. Same thing happened to us as well. Running the business using QB's will never be profitable because they gouge the $hit of you for fees.. Fee this, fee that...not worth it. 

By doing the above to enter a refund, does that impact only the accounting side and do you still need to process the refund via cc or ach through merchant account center/QB Payments?  My client asked me to process a very large refund yesterday, which was originally paid via a bank transfer and I followed these instructions, yet it seems I still need to run through the QB Payments side to actually initiate the transaction.  I prepared the refund after 3 pm, so it would not have batched yet, so I'm not entirely sure if I should wait to see if a refund is pending or not.  It's $24K, so I don't want to duplicate.

Still have to go to the merchant side and process. This is just the accounting side. 
be prepared for a huge fee for a $24k refund. 

Still have to go to the merchant side and process. This is just the accounting side. 
be prepared for a huge fee for a $24k refund. 

Hi there, hollykcpa.

Thank you for visiting the QuickBooks Community. I'll share various information on how the refund process works in QuickBooks.

If you have QuickBooks Payments and you used it to process customer payments, yes, you still need to process the refund through the merchant account center. Then, the merchant is the one who will automatically prepare the refund for you to the customer. Please note that payment transactions you void may incur a fee. You'll have to pay a fee for any refunds you give or return transactions. The fees depend on your pricing plan and transaction type.

Additionally, you can contact the Merchant Support Team so you can verify from them the status of the refund to ensure that you're not refunding duplicate.

If you're not using a QuickBooks payment account, You'll have to manually process the refund and enter them into QuickBooks Online. You can click this article to see the detailed steps on how to perform the process: Void or refund customer payments in QuickBooks Online.

Please refer to this article to view details on how deposits and fees are recorded in QuickBooks Payments: Common questions about payments deposits in QuickBooks Online.

I'm always here if you need more help in reversing your transaction. Just let me know by leaving a reply below. Keep safe and have a wonderful day!

Amazing how many responses do not even coming close to answering your question.  This happens so much here i'm starting to believe the responses are by poorly programmed bots.  There's no way multiple humans are stupid enough not to understand what you're asking.

Cost us even more to do a refund then the orginal invoiced transaction (2.9%) because it looks like the refund is counted as a keyed (3.4%) transaction. Stripe doesn't charge anything for CC payment refunds.

Maria,

Can you please advise if we reverse a charge/transaction to a customer, will the processing fee be reversed/refunded as well? 

Thanks for joining the thread, @Carlos DeGannes. I'll share an insight on your query about processing fees in QuickBooks Online. 

Processing fees cannot be returned or refunded when reversing a transaction for a customer.

Also, a refund or return transaction will be charged a fee depending on your pricing plan and transaction type.

You can sign in to your Merchant Service Center to review the rates. By this, you were able to know the amount being charged. The cost is typically determined based on a percentage of the transaction and a flat fee. 

In addition, I've got these helpful resources for further details about:

• A quick guide to Credit Card processing.
• Am I charged a fee on refund or void transactions?

 
Also, here's a link that has detailed steps on how to refund a payment transaction in QBO. This way, we can ensure everything is processed, and your accounting stays accurate.

I'll be glad to help you if you have any other questions about managing your transactions in QBO.​ Have a good day!

This just happened to me, but the invoice amount was $44,000.  A total of $2800 of fees.  Where is that petition?

Years ago, Intuit merchant service refunded fee when you refund a customer. It reversed the 3% fee except a nominal like $0.25 per transaction fee. So you lost less than $1. It makes sense because they have no risk, which technically no money transaction after the refund. Commercial banks merchant accounts fee structure are still like this.

Recently we had a government customer used the wrong card initially for a close to $10,000 bill, and asked us to refund the 1st card and charged the 2nd card. We were being charged closed to 4.5% each time. In total Intuit charged us closed to $1400. What a RIP-OFF!!!

3%-4.5% transaction fee is to cover merchant account risk. There is no reason behind to charge another 3-4.5% fee instead of refund. It's like you return your purchase to the store, instead of refund they charge you again. UNREAL!!!