What happens after I reversed a credit card charge in QB payment center?

It's great to have you here today, res. I can help you manage and enter reversed credit card charges from your customers in your online account.

With QuickBooks Payments, reversal credits to a customer's card performed after the batch closes will incur the same processing fees as the original transaction. That said, payment batches will close at 3:00 PM PT every business day. Since QuickBooks is dependent on the data imported from your bank, reversed transactions will be downloaded to your online banking feeds once these entries are cleared from your credit card account. Thus, you can make a refund and record an Expense entry to process reimbursement to your client. To do this:

1. Navigate to the + New icon and click Expense.
2. From the Payee field, choose the desired customer. Then, select the bank the money is being refunded from in the Payment Account field.
3. Under the Category field, select the Debtors account (Accounts receivable). Then, enter the amount of the refund.
4. In the Tax field, select the appropriate Tax (not inclusive/exclusive of tax) and click Save.
5. Once done, go to + New and choose Receive payment.
6. Add the Customer and select the Payment method and Deposit to.
7. The balance should be 0 as they will cancel each other out. Then, tap Save and close.
8. If you have Online Banking, go to Transactions, then Bank Transactions and match the record you found.

You can check this guide for more insights: Void or refund transactions in QuickBooks Online.

Moreover, I'm including this resource to help you review your accounts to ensure these always match your bank and credit card statements: Reconcile an account in QuickBooks Online.

This thread will always be available whenever you require additional assistance managing customer credit card reversals. Feel free to reply to this post, and I'll ensure to provide further help. Keep safe and have a great day ahead!

Why is the refund an expense? 

After I reversed the transaction in QB payments do I have to create a refund receipt in the books?

I'll be chiming into this conversation to clarify how to handle customer refunds in QuickBooks Online (QBO), res.

Please know that the steps provided by my colleague work for customer overpayments and generating a credit memo for them. Meanwhile, it's important to note these factors before initiating the refund:

• The refunded credit card (CC) payment can only be issued to the original card used. You can verify with your customer to ensure it's the accurate one.
• You can only issue a refund amounting to the original sale value.
• Refund for CC payment is only possible within 90 days of the sale.

To ensure accurate records in your books, you can enter the refund in QBO by utilizing the Refund receipt feature. Here's how:

1. Open your QBO account and go to the + New menu.
2. Click Refund receipt.
3. Choose the Customer you need to issue a refund.
4. Complete the form according to your original sale (they should be identical).
5. Select the Payment method used and pick the issuing account from the Refund from dropdown.
6. Once done, hit Save and close.

For additional reference in handling CC refunds, please review this link: Void or refund customer payments in QuickBooks Online.

You may also use your QuickBooks reports to review your sales and inventory status. Doing so could help you get a complete view of the things you buy and sell from your vendor and customers,

Tag me on this thread if you have more questions about CC payment refunds or need help handling your other sales and expense transactions. Rest assured, I'll get back and assist you accordingly.