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truk4u
January 8, 2021
Question

Customer Refund and Fee

  • January 8, 2021
  • 3 replies
  • 0 views

I am new to Merchant Services. Sometimes it's necessary to refund a customer due to product unavailability after the customer has paid with a credit card. Example, customer paid 3000.00 and Quickbooks took 90.00 out for the fee, so I received 2910.00. Now I have to give the customer back his 3000.00 and in doing so, the 90.00 fee I paid does not get refunded to me, so I'm out 90.00 due to no fault of mine. Is this correct?

 

With PayPal, I leave the money in my account until product is delivered and if I have to do a refund, my customer gets 100% of his money back including the fee and I have no cost for the transaction. 

 

Please help.

    3 replies

    MariaSoledadG
    MariaSoledadG
    January 8, 2021

    Entering a refund for your customer is so easy, truk4u.

     

    You'll want to enter a refund for your credit card or an ACH payment for a sales receipt. Please follow the steps below on how to do this: 

    1. Click + New.
    2. Select Refund receipt.
    3. Select the customer you want to refund from the Customer ▼ dropdown.
    4. Fill out the fields using the same info from the original sale. To credit back their credit card, in Payment Method, choose QuickBooks Credit - Credit card. To credit back their bank account, in Payment Method, choose QuickBooks Credit - Bank.
    5. In Refund From, choose which payment method and account you wish to refund the customer from.
    6. Click Save and close.

    To refund an invoice that the customer already paid:

    1. Click + New.
    2. Select Refund receipt.
    3. Select the customer you want to refund from the Customer ▼ dropdown.
    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. Note: You can't refund an ACH payment to the customer’s bank account. You'll need to choose another refund method (cash, check, or store credit).
    6. Click Save and close.

    For reference, you can run and customize reports in QuickBooks Online to show the information you need.

     

    Drop a comment on this thread if you have other questions about refunds. I'm here to assist you further for any other queries. 

    T
    truk4uAuthor
    January 8, 2021

    Thank you for the reply, but it didn’t answer my question as to what happens to the fee I paid.

      M
      MaryAnn_E
      January 9, 2021

      Hi there, @truk4u.

       

      Allow me to provide some clarification about your credit card processing fee concern. 

       

      If you are using the merchant services when processing payments for invoices, being able to add the credit card processing fee for your customer's invoice isn't applicable. This is because the credit card processing fees are charged every time you do a transaction. 

       

      For example, when you process an invoice for $5145 (invoice amount and credit card processing fee) you'll still be paying another 2.9%, which would be a total of $149.21. That said, you won't be able to receive the full invoice amount.

       

      To learn more how credit card processing fee works in QuickBooks, please check out these articles: 

       

      Please let me know if you have more questions about this concern. I'm always here to help. Take care!

      O
      OffsetU
      April 6, 2021

      Seems like your getting a lot of "canned responses" for the QuickBooks team. QuickBooks gouges you on credit card refunds. You will pay the original credit card fee then pay the same fee if you refund the money back to your customers credit card. So if it cost you $90 for the original fee it will cost you another $90 to refund the payment back to your customers credit card for a total of $180 in fees!  

       

      It happened to me...I had a credit card fee of $144. I had to refund the sale back to my customer and I got changed the same $144 fee. Total price gouging! The customer service rep I talked to said it would be better to refund with a check but you still would be out the original fees.

       

      There should be a law against this abuse from intuit and quickbooks!!!

        K
        Kaex05
        April 8, 2021

        This JUST happened to me! I had to refund $8,900 back to my customer and he used an AMEX credit card. Was adamant it go back to the card so I went through Merchant Services and reversed the transaction. First time ever doing this. I don't refund much but this was a special circumstance. There was no mention during this process that ANOTHER fee would incur, I even looked online to find forums. Wish I had found this one before I made the reversal. On my invoices I mention all CC transactions will incur up to a 3% CC fee if needing a refund so my customers know they will be charged and I won't have to loose that money. I hate doing that but if I am not going to make the sale why should I have to loose money. I try to encourage ACH transfers to negate this abhorrent fee system CC companies force on us. This is ridiculous though. It's an algorithm system. The work is done in seconds all by machines! So I am out $300 bucks, would be $600 if I didn't already have an agreement with my customers. How can this be okay!?

         

        I am sincerely considering moving my payment system out of Quickbooks and using Square or even Paypal. Anything really that doesn't take advantage of the small business.

         

        What petition do we have to sign to fight against these fees?

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          picou12
          April 30, 2021

          Yes, I would agree- ach transfer is useful but it is not as safe as a credit card transaction. I recently had someone ach transfer via QB- their bank confirmed they had the money so QB marked it as paid. However, when QB went to actually debit the money from their account hours later they had already transferred the money out of their bank account. I had already shipped the product when we found out that QB had not actually processed the transaction. Out $500 for that one. 

          I agree tho, these companies are f-up.

           

          H
          hunterholder
          August 20, 2022

          This just happened to me as well.

          Had to reverse a transaction, that quickbooks had already charged me $261.25 for. Then was charged an additional $367.25 for the reversal. The entire time i spoke with 4 different representatives they kept beating around the bush when asking if my fee would be refunded, some assuring me they would "take care of everything for me". Then when i was charged the additional fee the next representative told me those employees must not have been trained properly and there was nothing he could do.

          Absolute crooks that could care less about the success and well being of their small business owners. 

          Closing my account today.

          Any suggestions on other invoicing/accounting services?

           

           

            K
            kldjackson
            October 11, 2022

            Years ago I processed credit cards through Intuit payments.  In fact, I used several Intuit products because I thought it WAS a good company.  At that point the original fee was refunded and there was no other charge for a refund.  I assumed it was the same way with QuickBooks Payments.  I was wrong!   It's basically a double charge when you issue a refund with no income to offset the fees.   Shame on you Intuit!  I will not do that any longer.  This is just one more disappointment with QuickBooks Online and Intuit in general.  I will be open to other solutions in the future.  Surely they have competitors?

            P
            picou12
            October 13, 2022

            Its a phallus move on the part of quickbooks. They have no shame. Just wrote a $3,000 check to a client instead of a refund so I wouldn't be charged another $100 in processing fees on top of the original fees.

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