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pturzo
Level 3

What is the process to refund a customer who changed their mind about purchasing? They made a partial payment via quickbooks payments-bank.

They made 2 payments via quickbooks payments-credit card and 3rd payment via quickbooks payments-bank. What is the fastest method to get them their money back? Can I click on the payment received, click "transaction processed", then hit "refund" on the bank transfer receipt that pops up?
13 Comments 13
ReymondO
QuickBooks Team

What is the process to refund a customer who changed their mind about purchasing? They made a partial payment via quickbooks payments-bank.

I'll help you process a refund to your customers in QuickBooks Payments, @pturzo.

 

The best way to pay back your customers is by reversing the transaction in your QuickBooks Payments account. Let me show you how:

 

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

 

In addition, you can easily search for your transactions by date, amount, and last 4 digits of the customer's credit card number. 

 

Please also take note that QuickBooks Payments allows you to process the refund within six months from the date of the sale. After this period, you can provide a refund using cash or check to your customers.

 

You can also print a receipt of your transaction and manually send to it your customers. Here's how:

 

  1. Sign in to your QuickBooks Payments account.
  2. From the Activity & Reports drop-down, click Transactions.
  3. Enter the appropriate date range and select Search.
  4. On the list of results, identify the desired transaction you want to print.
  5. Click the Gear icon of your desired transaction and select View Receipt.
  6. Once done, click Print.

 

The Community always has your back, so please let me know if you have other questions. Have a great weekend, and stay safe.

pturzo
Level 3

What is the process to refund a customer who changed their mind about purchasing? They made a partial payment via quickbooks payments-bank.

Thank you 

pturzo
Level 3

What is the process to refund a customer who changed their mind about purchasing? They made a partial payment via quickbooks payments-bank.

Is there another way to do this refund? If I go to the payment that I'm trying to refund in Quickbooks Online and click on "transaction processed", a bank transfer receipt pops up. There is an option to print or refund. If I hit refund, will that work to refund him the money? Or, is this just how to handle refunding the invoice within Quickbooks Online and it doesn't actually refund the money?

JasroV
QuickBooks Team

What is the process to refund a customer who changed their mind about purchasing? They made a partial payment via quickbooks payments-bank.

Yes, there is, @pturzo.

 

Recording a refund to your customer will actually return their payments. Allow me to share some steps on how to achieve this in your QuickBooks Online (QBO) account:

 

  1. Go to the + New menu.
  2. Click the Refund receipt.
  3. Select the customer you want to refund from the Customer drop-down.
  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 (you can't refund an ACH payment to the customer’s bank account).
  6. Then select Save and close.

You can read the Refund a credit card payment or ACH payment for a paid invoice section in this article for more information: Void or refund customer payments in QuickBooks Online.

 

I'm also this resource that can guide you on how to link your customer deposit to an invoice.

 

Let me know if you have other questions about refunds in QBO. I’ll be around ready to assist you. Take care, and stay well.

pturzo
Level 3

What is the process to refund a customer who changed their mind about purchasing? They made a partial payment via quickbooks payments-bank.

Thank you JasroV.

I feel like I need to explain exactly what happened.

I invoiced a customer in September. The customer made 2 payments towards the invoice but never paid the full amount. He made 2 payments via quickbooks payments-credit card and 1 payment via quickbooks payments-bank.

He changed his mind about the purchase this week and wants a refund. I was able to refund the 2 credit card payments but not the ACH payment. I just now mailed him a check because I couldn't figure out how to reverse the ACH payment online. Now, I'm really not sure how to record all this in quickbooks online. It seems there are so many different ways to do one thing. It's very confusing.

ReymondO
QuickBooks Team

What is the process to refund a customer who changed their mind about purchasing? They made a partial payment via quickbooks payments-bank.

Thanks for getting back to this thread and providing additional details about your concern, @pturzo.

 

You can record a refund to your customer using Check or Expense if they made a prepayment for an order but canceled it before receiving the goods or services. Doing this will reduce your bank's balance and offsets the customer's prepayment.

 

Let me show you how:

 

Step 1: Record the refund for your customer

 

  1. Click the + New icon and select Expense or Check.
  2. Choose the customer you want to refund from the Payee drop-down list.
  3. From the Payment account drop-down arrow, select the bank account where you deposited the payment.
  4. On the first line of the Category column, select an Accounts Receivable.
  5. Enter how much you want to refund in the Amount field.
  6. Fill out the other fields as you see fit, then click Save and close.

 

Step 2: Link the refund to the customer's credit.

 

  1. Select the + New icon and click Receive payment.
  2. Choose the same customer you used for the check or expense.
  3. Fill out the other fields as you see fit.
  4. Under the Outstanding Transaction section, select the checkbox for the Expense or Check you created.
  5. Make sure the payment is equal to the open balance, then click Save and close.

 

In addition, you can run the Transactions List by Customer report in QuickBooks Online. This will show you the list of income and expense transactions grouped by customers. Just go to Reports and open the Transactions List by Customer report.

 

Please know that our doors are always open to help you with any QuickBooks-related concern. Take care and enjoy the day! 

pturzo
Level 3

What is the process to refund a customer who changed their mind about purchasing? They made a partial payment via quickbooks payments-bank.

Thank you so much! All that makes sense. What do I do with the original invoice now? 

It shows as if we still have an outstanding partially paid invoice.

 

Also, was it not possible to reverse his ACH payment? When someone pays via Quickbooks payments-bank but changes their mind, is the only way to refund them by sending them an actual check?

 

Thank you so much!

pturzo
Level 3

What is the process to refund a customer who changed their mind about purchasing? They made a partial payment via quickbooks payments-bank.

This is what his account looks like now. How do I get it to zero out?

 

Thanks!

 

MaryLandT
Moderator

What is the process to refund a customer who changed their mind about purchasing? They made a partial payment via quickbooks payments-bank.

Let me add some insights about the ACH payment, pturzo.

 

You need to choose another refund method, like actual check or cash since you're unable to refund an ACH payment.

 

To zero out the balance, you can record the ACH payment. Then, use the Refund receipt function to enter the actual check you've paid to the customer. Let me show you how:

 

  1. On your screenshot, click Receive payment.
  2. Choose EFT (the ACH method) from the Payment method drop-down list and enter the number in the Reference no. field.
    recordACHpayment.PNG
  3. Click Save and close.

Once done, you can record the refund. Here's how:

 

  1. Click + New, then Refund receipt.
  2. Enter the name of the customer.
  3. Select Check from the Payment method drop-down list.
    refundACHpayment.PNG
  4. Choose a bank from the Refund from field where you take the money from.
  5. Complete other fields, then click Save and close.

You can visit again this link for more details about the process: Void or refund customer payments in QuickBooks Online.

 

Let me know if you need anything else concerning the customer refund. I'm always around to help you.

pturzo
Level 3

What is the process to refund a customer who changed their mind about purchasing? They made a partial payment via quickbooks payments-bank.

Thank you MaryLandT.

I already refunded them the 2 credit card payments they made via Quickbooks Payments-card for $200 and $500 and I mailed them a physical check for $750 to cover the ACH payment. I did a refund receipt for the check I mailed. I did not make a refund receipt for the credit card refunds yet. Should I do that as one transaction for $700 ($500 + $200)?

Going by your instructions:

I don't have an "eft" option in the Payment method pull down. Is that the same as e-check?

The fact that this was paid and refunded in 3 different transactions is making this more confusing for me.  

I'm not understanding how to link all 3 refunds I made to the invoice. Not sure what the reference number would be either. Is that the number that was given when I generated the refund receipt for $750?

Sorry that this is not making complete sense to me. I really appreciate all your help.

MariaSoledadG
QuickBooks Team

What is the process to refund a customer who changed their mind about purchasing? They made a partial payment via quickbooks payments-bank.

I'm here to help you with the refund process, pturzo.

 

The steps provided by @MaryLandT can be performed in QuickBooks Online (QBO). That's the reason why you're not seeing the EFT option.

 

The Electronic Fund Transfer (EFT) is somewhat the same as an e-check. This is the money from one bank account to another, either within a single financial institution or across multiple institutions.

 

When processing a refund, you can do that as one transaction for $700. For you to correctly process the refund, you can follow the process provided by my colleague in QBO. 

 

For your reference, you can read this article for more information: Categorize And Match Online Bank Transactions In QuickBooks Online.

 

Keep me posted on the process. I'll be right here to help you anytime.

cbenson_1
Level 1

What is the process to refund a customer who changed their mind about purchasing? They made a partial payment via quickbooks payments-bank.

I have been going in circles trying to figure out how to give a partial ACH refund from QBO. I see so many articles for refunding the whole transaction, but not a partial amount.  I tried going to QuickBooks Payments and searching for transactions, which I can find, but when I go to refund e-check, the transaction won't show up in search results.  Why is it so hard to refund pat of an invoice payment from my customer?

RCV
QuickBooks Team
QuickBooks Team

What is the process to refund a customer who changed their mind about purchasing? They made a partial payment via quickbooks payments-bank.

Let me help you with processing a partial refund in QuickBooks Payments, cbenson_1.

 

We have two ways to issue a partial refund in QuickBooks Payments. First, we can process a refund by selecting the Reverse a Transaction option in the Processing Tools drop-down. Once you reach Step 6, you'll be prompted to process a full refund. Just make sure to select Cancel and after that, you can enter a different amount. Here's how: 

  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 tap Search.
  4. Select the transaction you want to refund.
  5. Manually type in the amount you want to refund in the Amount field, then Submit.
  6. A new message will appear. You'll be asked to select Continue to process a full refund. If you'd like to submit a different amount, select Cancel. You'll then be prompted to enter a different refund amount. Select Continue.
  7. A receipt of the transaction will display on the screen. Press E-mail or Print to get a copy of the receipt.

 

The second one is to create a partial refund/credit. just follow the steps below: 

  1. Sign in to your QuickBooks Payments account.
  2. From the Activity & Reports drop-down, select Transactions.
  3. Enter the appropriate date range, then Search.
  4. Select the Transaction ID or the transaction you want to reverse.
  5. Tap Reverse (Void/Credit).
  6. Type in the amount you want to refund, then Submit.
  7. A receipt of the transaction will display on the screen. Select E-mail or Print to get a copy of the receipt.

 

Here's an article you can refer to for more details about voiding or refunding transactions in QuickBooks Payments. Moreover, you may incur a fee depending on your pricing plan and transaction type when processing a refund. For further details, check out this article: Understand fees for refunds or void transactions.

 

Feel free to browse this link here if you need help with other tasks in QuickBooks Payments. It'll route you to our general payroll topics with articles.

 

Drop a comment below if you have follow-up questions or concerns about processing customer payments. I'm more than happy to assist you. Take care and have a wonderful day ahead.

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