How do I issue a refund for a customer who paid via ACH?

Hi SParikh,

Refunding customers who paid via ACH is done manually. To do this, you can record a Refund Receipt and write them an actual check (not in QBO). Or, create a credit memo first and enter a check transaction in QBO. Then, link the two via Receive Payment.

Credit memo:

1. Click +New and choose Credit memo.
2. Select the customer and enter the same items.
3. Click Save and close.

Create a check: 

1. If you're in Business view, follow the steps to switch to Accountant view first.
2. Click +New and select Check under Vendors.
3. Select the customer as the payee.
4. Choose the Accounts Receivable account in the CATEGORY field of the table and enter the refund amount.
5. Click Save and close.

Link the credit memo and the check:

1. Click +New and choose Receive Payment.
2. Select the check and the credit memo, as shown below.
3. Click Save and close or print the check.
   

That's it. You can also check out these articles for your additional reference:
 

• Record a customer refund in QuickBooks Online
• Void or refund customer payments in QuickBooks Online - for credit card payments

If you have more questions about your refund, feel free to go back to this thread. Take care and have a great day!

Thanks for the reply. Still too many steps to issue the refund. I don't understand why a check needs to be written when the preferred method is ACH. QB needs to automate the process.