I am using qbo refund receipt function. On entry of transaction, customer account shows that amount is paid, but amount do not appear in bank feed, what I am missing?

Let me provide a few pointers in this matter, ikramabubakr.

When you create a refund receipt, it only affect the bank register within QuickBooks Online. This is only for recording purposes within the program.

Note that the transactions downloaded in the Banking page are the ones cleared from your actual bank account. Hence, the refund receipt didn't appear in the Banking (For Review) page.

If you processed an actual refund to the customer, we'll wait until it is cleared from your bank. Then, QuickBooks will automatically download the transaction. From there, we can start matching it to the refund receipt in your QuickBooks register.

If you need further assistance with this, please let us know. We'll be around to get everything aligned.

Thank you for your response James.

What is the best way to pay refunds from QBO without involving checks.

Like, I schedule payments of vendors and that get paid from QBO.

Welcome back, ikramabubakr.

Since the refund receipt is from QuickBooks Online (QBO), the refund will not automatically reflect on your bank feeds. You'll want to login to your merchant account and create the refund from there. 

To do that:

1. Sign in to your QuickBooks Payments account.
2. From the Processing Tools drop-down, select Reverse a Transaction.
3. Fill out the necessary fields and select Search.
4. Select the transaction(s) you want to refund, then Submit.

You can visit this guide about refunding transactions in QuickBooks Payments: Void or refund transactions in QuickBooks Payments.

I've got your back if you need more help. Enjoy the rest of the day!