How to Enter a QuickBooks Credit Card Refund in Desktop & Online Versions?

How to Enter a QuickBooks Credit Card Refund in Desktop & Online Versions?

If your payment transaction has been batched already then you will have to send a refund to your customer. You can either send the whole amount as a refund or refund specific services, products, and fees which we call partial payments. However, refunding the payment may apply charges, hence, most users prefer to void credit card refunds. The process of QuickBooks credit card refund can be tricky. Therefore, knowing the right method is mandatory for every QuickBooks user to refund your customer payment.

Through this guide, we will teach you how to enter a credit card refund in QuickBooks Desktop and QuickBooks Online using different methods. By implementing this guide, you can keep your QuickBooks accounting software accurate.

How Do You Refund a Credit Card Payment in QuickBooks Online?

Credit card payments can be refunded in different ways in QuickBooks Online. You can either refund the credit card payment for the sales receipt or for the paid invoice. You can even send a partial refund to your customers. Let us take you through the detailed description. Learn with us how to process a credit card refund in QuickBooks Online.

QuickBooks Refund Customer Credit Card for the Sales Receipt

If you are refunding your customers for the sales receipt then you just have to prepare the refund receipt and enter the required details such as customer and payment method. Thereafter, you can decide from which account you want to refund and send the refund to your customer. Let’s find out how to do a credit card refund in QuickBooks Online for the sales receipt:

  • Go to the “+New” option.
  • Click on the “Refund Receipt” menu.
  • Then, click on the “Customer” drop-down menu and select the relevant customer to send a refund.
  • Here, you can add the details in the required fields. Make sure you enter the same information mentioned in the original sale.
  • Now, choose the “Payment method”.
    • If you want to return the amount to the credit card of a customer then choose the “Credit Card” as your payment method.
    • To send the credit to the bank account, you can pick the “Bank” as your payment method.
  • Move to the “Return from” section and choose which account and payment method you want to send a refund to your customers from.
  • Once done, click the “Save and Close” button.

By implementing these steps, you can easily add credit card information and refund your customers. When you send the refund receipt, you can take a print of the refund receipt by pressing the Print button.

QuickBooks Refund Customer Credit Card for the Paid Invoice

When the customer has already the invoice(how to create an invoice in QuickBooks), you can follow this procedure to refund credit card payment in QuickBooks Online:

  • Select the “+New” option.
  • Click on the “Refund Receipt” menu.
  • Now, select the relevant customer by using the “Customer” drop-down menu.
  • Here, you can add the details in the required fields. Make sure you enter the same information mentioned in the original sale.
  • After that, choose which account and payment method you want to send a refund to your customers.
  • Once done, click the “Save and Close” button.

After performing these steps, you can process the credit card refund to the selected customers. When sending the refund receipt, you can take a print of your receipt for the record.

Send the Partial Refund

In some instances, you just want to give partial payments to your customers. For that, you can prepare the refund receipt, select the relevant customer, enter the required details, and make sure you add the amount and items for which you send a refund. Let’s have a look to refund credit card payment in QuickBooks Online.

  • Press the “+New” button.
  • Move to the “Refund Receipt” option.
  • Select your customer using the “Customer” drop-down menu.
  • After this, you can add the information in the required fields. Please remember that you can only use the information specified on the original sale
  • Since you are giving a partial refund, here you should add the only items and amount you wish to send.
  • Once done, click the “Save and Close” option.

As you follow these steps, you can send a partial refund. If required you can take a print of it. Once you process the refund, your customer will receive the refund to the selected mode of payment such as bank or credit card. Now you have learned how to enter credit card refund in QuickBooks Online using different methods.

Important Detail to Review about QuickBooks Credit Card Refund (for Online Version)

When you refund the credit card payments to your customer, you should be aware of the following points:

  • Users can refund the amount of only the original sale but not more than that.
  • Credit card refunds can return to the original card only that was used by the user during the purchase.
  • Users can issue credit card refunds within 180 days of a sale.

How to Enter a Credit Card Refund in QuickBooks Desktop?

In QuickBooks Desktop, users can refund the checks or cash payments to the same credit card used by the customer. Whether you refund the partial amount, whole amount, or particular products and services, QuickBooks takes care of the processing of refunding the credit card payments. Continue reading the following steps to know how to record credit card refund in QuickBooks Desktop:

  • Open “QuickBooks Desktop” and log in to “QuickBooks Payments”.
  • Go to the “Customers” tab.
  • Select the “Credit Memos/Refunds” option.
  • By using the “Customer: Job” drop-down menu, you can pick the customer to whom you want to send the refund.
  • After that, add the products and services for which you are sending the refund.
  • Press the “Save and Close” option.
  • When you see the “Available Credit” window, choose the “Give a refund” option.
  • Hit the “OK” button.
  • If you wish to give credit for the payment in the future then you can select the “Retain as an available credit” option.
  • Press the “OK” button.
  • When the “Issue a Refund” page, you can decide how you wish to send a refund a transaction by choosing the “Issue this refund via” option.
  • If you choose “Check” or “Cash”, you can choose the account from which you are paying the refund.
  • Those who are paying for credit card payment can have a look at the following steps:
    • Open the “Issue this refund via” field, choose the type of credit card that you want to refund.
    • Add the information of the credit card. Alternatively, you can choose the “Swipe card” option and swipe the card of your customer.
    • Place the checkmark for the “Process credit card refund” option.
  • After this, click the “OK” button.

As you execute these steps, QuickBooks will automatically process the refund and handle all your accounting for you.

Important Detail to Review about QuickBooks Credit Card Refund (for Desktop Version)

As you are proceeding with refunding the credit card payments for your customer, make sure you read the following points:

  • Users can use the same Company Auth ID or Merchant Account that you used for your original transaction.
  • A refund can be issued within six months of an original transaction.
  • Users can refund the credit card payment only that was used during the purchase.
  • You cannot refund more than the total amount specified on the card.

When Do Your Customers Get the Refunds?

As you enter and process the credit card payments for the customers, QuickBooks applies this refund to a debit card or the credit card of the customer when it settles the transaction’s latest batch. This generally happens at 3:00 PM PT every day. However, the process can take time, and thus customers may see the credit later than the expected time; It depends on the bank of customers. Standard time is 7-10 business days to reflect changes.

To Sum Up

QuickBooks users can refund the credit card payment to a specific customer in different ways. Whether you want to send the whole amount of refund or partial payment, QuickBooks allows you to make refund payments and send it back to the credit card or bank account of your customers. Here, we have shared important details and already explained how to process a credit card refund in QuickBooks Online and QuickBooks Desktop. Hope you find it helpful.

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