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Troubleshoot credit card refunds (Merchant Service)

When a customer has overpaid or underpaid an invoice, you need to refund the customer properly and make sure your QuickBooks accounts are updated properly.

Sometimes, after you refund a credit card payment to a customer, you may notice an unexpected open balance on the customer's account. In these cases, there is usually no return of goods or services involved, just a refund of money. Or, if the return of goods and services is involved, the amount being refunded may be different from the amount of goods or services being returned.

This Help topic contains troubleshooting tips to help you resolve incorrect open balances in such cases.

Note: You cannot use a refund to balance a customer's incorrect open balance. As a general rule, remember that a credit memo must be used to balance an invoice, and the Received Payment form must be used to balance a refund or a credit.

How can I resolve an incorrect open balance if ...

I overcharged my customer's credit card (before the daily cutoff time for settlement)

If you overcharged your customer's credit card, and you discover the error the same day before 3:00 p.m. (pacific time), the solution is to open the original Receive Payment form or Sales Receipt and void it. This will void the associated credit card payment. Then, simply receive the correct amount again.

To do this task

  1. Find and open the customer payment you want to void.

  2. In the Receive Payments or Enter Sales Receipt window, click the link View Payment receipt.

  3. Click Void Payment.

  4. Receive a new payment or create a new sales receipt and enter the correct payment amount.

  5. (optional) To verify that the customer's open balance is now correct, go to the Customer Center, click the customer's name, and then click Open Balance in the Reports for this Customer area.

I overcharged my customer's credit card (after the daily cutoff time for settlement)

If you overcharge a customer and don't discover the error until after the daily cutoff time for settlement, the solution is to refund the money to the customer. You cannot use a credit memo because there is no return of goods or services. You are simply returning a payment to the customer. The solution is to use the overpayment option on the Receive Payments form.

To do this task

  1. Find and open the customer payment you want to adjust.

  2. In the Overpayment section of the Receive Payments window, click Refund the amount to the customer.

  3. Click Save & Close to save the transaction and close the window.

  4. In the Recording Transaction window, click Yes.

  5. In the Issue a Refund window, click OK to process the Refund.

  6. (optional) To verify that the customer's open balance is now correct, go to the Customer Center, click the customer's name, and then click Open Balance in the Reports for this Customer area.

My customer underpaid an invoice for an inventory item and then cancelled the order (before the daily cutoff time for settlement)

If your customer underpaid an invoice (or made a down payment) and then cancelled the order, the payment needs to be refunded and the goods returned to inventory. If the cancellation happens the same day, simply void the payment from the Receive Payment form. Then, create a credit memo and use the credits to offset the amount of the invoice.

To do this task

  1. Find and open the customer payment you want to void.

  2. Click View Payment Receipt.

  3. Click Void Payment.

  4. Create a credit memo with an amount required to offset the amount of the original invoice.

  5. (optional) To verify that the customer's open balance is now correct, go to the Customer Center, click the customer's name, and then click Open Balance in the Reports for this Customer area.

My customer underpaid an invoice for an inventory item and then cancelled the order (after the daily cutoff time for settlement)

If your customer underpaid an invoice (or made a down payment) and then cancelled the order, the payment needs to be refunded and the goods returned to inventory. If this happens after the daily cutoff time and the payment has been settled, the solution is to void the invoice, as in the following procedure.

To do this task

  1. Find and open the invoice you want to void.

  2. Go to the Edit menu and click Void Invoice.

  3. Click Save & Close to save the transaction and close the window.

  4. In the Recording Transaction message window, click Yes to void the invoice.

  5. Next, find and open the customer payment you want to void.

  6. In the Overpayment section of the Receive Payments window, click Refund the amount to the customer.

  7. Click Save & Close to save the transaction and close the window.

  8. In the Recording Transaction message window, click Yes to open the Issue a Refund window.

  9. Click OK to process the refund transaction.

  10. (optional) To verify that the customer's open balance is now correct, go to the Customer Center, click the customer's name, and then click Open Balance in the Reports for this Customer area.

KB ID# H_SVC_QBMS_TROUBLESHOOT_CC_REFUND
12/3/2016 9:39:54 AM
QYPPRDQBKSWS03 9138 Pro 2017 8a817b