IMPORTANT NOTES ABOUT REFUNDS:
IMPORTANT NOTES ABOUT REFUNDS:
Manual Refunds: Refunds have to be done manually by an Admin user; they cannot be done automatically.
Cannot Cancel Refunds: BE CAREFUL when doing refunds. Make sure you are entering the correct amount and refunding the proper payment! NOTE: We cannot cancel refunds. You must go through Till/Nuvei or ACHQ to cancel a refund, which can take weeks.
Invoice Status Changes: Refunding a payment removes that payment from the invoice. For example, if an invoice has a $100 charge with a matching $100 payment (zero balance), refunding the payment will reopen the invoice with a $100 balance.
Balancing with Credits: To zero out a reopened invoice balance after a refund, you need to apply a credit equivalent to the refunded amount.
Invoice Closure: An invoice reopened by a refund can only be properly closed by applying corresponding credits.
Void Same-Day Payments: You can issue full and partial refunds of credit card transactions posted AFTER the same day. (For same-day payments, you will need to void the payment. See this article for steps.)
Partial Refunds: If your merchant account provider is CARD CONNECT, you can ONLY issue FULL REFUNDS of electronic check (ACH) transactions (partial refunds are not available). If your merchant account provider is EnrollsyPay, you CAN issue partial electronic check (ACH) refunds.
Refund Timeframes: Refunds for credit cards take about 1-2 business days to go through. Refunds for ACH can take between 3-5 business days.
Multiple Merchant Accounts: If your company has more than one merchant account set up at a particular location, a payment processed at one location can only be refunded by Admin Users within that location. For example, a company has two locations and two different merchant accounts. One location/merchant account is labeled "Desert Peak." A credit card payment of $50 is posted through that merchant account. An Admin User from the location "Valley" cannot refund the $50 payment because it is attached to "Desert Peak." Only Admin Users in "Desert Peak" can issue the refund.
Best Practices for Refund and Credit Management
Best Practices for Refund and Credit Management
Maintain Transparent Records: Always keep invoices intact, even if a service or class is canceled. This approach ensures that you have a clear historical record of all transactions and changes.
Using Credits for Cancellations: If a service or class is canceled, consider adding a credit to offset the charge rather than deleting the invoice. Credits can then be used to resolve the balance without erasing the transaction history.
Handling Outstanding Balances: When applying credits, it is essential to confirm the customer's payment status. If they still owe money, credits should not be issued until the balance is settled. If the balance is resolved, credits can be removed as needed.
These steps apply to refunds for payments made on a previous day (not the same day). If it's the same day, you may be able to void the payment. See this article for steps. If the payment is still processing (identified by a clock icon), you will have to wait until it is done processing before the refund option will be available.
Step 1 - Create a Refund Discount/Credit Item
We suggest that you create a new Discount Item called “Refund Adjustment” or "Account Adjustment" and always use that item when doing refunds instead of a Misc. Credit. This Discount Item may have already been created for you when you first signed up.
Step 2 - Find Payment
There are two ways to find a payment and post a refund. One is using the "post transaction" on a customer's billing page or the "+" button beside "Invoices" in the left menu. The other is on the transaction history (customer's billing page). The following are the steps for each method.
Method 1 - Post Transaction
If you know which invoice the refund needs to be added to, this is the best option.
Post Transaction - Click the "+" button to the right of Invoices in the left menu or "Post Transaction" on a customer's billing page (top right). Click "Refund/Void Payment" on the list of options.
Enter Account - Next, enter the accounts by searching for them in the search bar within the window that opens. You can search by Enrollee name, Primary Account Holder name, or Primary Account Holder email address. Select the name for it to be added. Click Next.
Invoice/Account Credit Payment - Find an Invoice on an Account to refund (the payment has to have been within the last 12 months).
Invoice Refund - Click "Edit" on an Invoice to view the transactions on that Invoice. Click the three dots then "Refund Payment" beside the Payment to refund. Skip to Step 3 below.
Method 2 - Transaction History
If you don't know the invoice the refund needs to be added to, this option may work better.
Search for account - Search for an account in the top search bar. On the account's billing page, scroll down to the bottom to the "Transaction History."
Find the payment - Find the payment you wish to refund, which will be in green. Click the three dots beside the payment.
Go to invoice - If the payment is on an Invoice, click on "Go to Invoice." If the payment is NOT on an invoice, you should have an option to refund the payment (go to Step 4: Refund Payment).
Refund payment - On the invoice, click the three dots beside the payment again, then click "Refund Payment." Go to Step 3 below.
Step 3 - Close Invoice or Leave Invoice Open
Once you click on "Refund Payment," the following window will pop up:
The box beside "Refund payment and close invoice with a credit" will automatically be checked.
⚠️ Important: Understand Your Options
"Refund payment and close invoice with a credit" — This option is checked by default. It refunds the money to the customer and adds a credit to offset the original charge, bringing the invoice balance to zero. The original charge remains for historical records.
"Refund payment and leave invoice open" — Use this if the customer paid with the wrong payment method and will be paying again, OR if you already have a credit posted on the account. No credit is applied, and the invoice stays open.
Step 4 - Choose Invoice(s) to Refund
Find the invoice you want to refund. If the payment was split across multiple invoices, each invoice amount will be listed separately. By default, only the first box is checked. Check additional boxes to refund more of the total — keeping in mind any cancellation fees that should be deducted. NOTE: The original payment must have been made within the last 12 months.
Refunding One Invoice — If the payment covers a single invoice, one box will appear with the full amount pre-filled. To issue a partial refund (requires EnrollsyPay), simply change the amount.
Refunding Multiple Invoices — If the payment was split across multiple invoices, each invoice amount will be listed separately. By default, only the first box is checked. Check additional boxes to refund more of the total — keeping in mind any cancellation fees that should be deducted. Example: A $200.50 payment was split between two invoices — $100.00 and $100.50. Checking both boxes refunds the full $200.50.
5. Click "Confirm"/"Confirm anyway" to complete the Refund. See this article for how to know if the refund processed successfully.
Step 5 - Add a Cancellation Fee (optional)
If a cancellation fee applies, follow these steps after posting the refund:
Go to the Invoice where the refund was applied.
Click the "+" button on the right side of the invoice.
Select "Post Charge" from the menu
Scroll down and enter the cancellation fee amount, along with the Charge Item (if applicable)
Click Post
Finally, handle the credit using one of these options:
Option 1 - Edit the credit that was automatically created when the refund was posted.
Option 2 - Manually add a credit if you skipped adding one during the refund process.
Important Notes about Adding a Credit with a Cancellation Fee
Important Notes about Adding a Credit with a Cancellation Fee
The system will automatically enter the Credit equal to the refund. If you charge a cancellation fee, the Credit will need to be EDITED after the refund is posted to be one of the following:
If it's a FULL Refund (minus the cancellation fee), the Credit will INCLUDE the amount of the cancellation fee to balance out the account.
For example, if the total payment is $100 and the cancellation fee is $10, the full Refund is $90. The Credit should be $100 (the full Refund of $90 plus the $10 cancellation fee).
If it's a PARTIAL Refund (minus the cancellation fee), the Credit will INCLUDE the amount of the cancellation fee to balance out the account.
For example, if the total payment is $100, the cancellation fee is $10, but the partial Refund is half ($50), you would subtract the cancellation fee from the partial Refund to equal $40 refunded. The Credit should be $50 (the partial Refund of $40 plus the $10 cancellation fee).
Option 1 - Edit the Automatic Credit
Option 1 - Edit the Automatic Credit
Follow these steps if when you entered the refund, you left the option to use a Credit (Credits will show up in blue).
Click on the three dots beside the BLUE Refund Credit within the Invoice:
Click "Edit" then scroll down and edit the amount of the Credit to be EQUAL to the total amount refunded PLUS the cancellation fee.
In the following example, the total payment amount was $150. A $10 cancellation fee was added so a refund was given of $140. The credit should be edited to be $150 to balance out the account to zero. See Steps to Add a Credit with a Cancellation Fee for more information on Credits.
Option 2 -Add a Credit
Option 2 -Add a Credit
If you did NOT add a Credit during the Refund step, then follow these steps to add a Credit to the Invoice containing the Refund.
Within the Invoice containing the Refund and cancellation fee, click the Plus button
Click "Post Credit"
Scroll down and enter the total amount refunded PLUS the cancellation fee.
In the example above, the total payment was $150. The cancellation fee was $10. The refund was $140. So a Credit of $150 needs to be entered to balance out the account to zero. See Steps to Add a Credit with a Cancellation Fee for more information on Credits.