Thanks for getting back to me. The client required us to do the refund to their credit card due to the total amount that was being refunded.  The actual refund was done in our Merchant program so they got their money. It was the way it was showing in QB that bothered me. 

So basically when this happens, still  issue the credit memo and mark it as being refund by cash/check.  Do not choose credit card.  So essentially, the transaction showing credit card refund is what I need to get rid of and the keep the credit memo. I understand what you said to do but I just want to be sure I'm thinking it out the right way.    I felt having the 2 transactions showing  the refund was wrong.

Thanks again!