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Ballentine
June 23, 2024
Question

How can you issue a partial refund to someone who paid through Quickbooks with a credit card?

  • June 23, 2024
  • 1 reply
  • 0 views

I set up a "Security Deposit" entry in the invoice, which was paid along with the balance due. Now, I would like to refund ONLY the security deposit, but I'm running in circles here trying to figure it out.

 

If I try to create a Refund Receipt, QBO warns me to use the Sales entry instead, and if I ignore that warning and try to select QuickBooks Payment for the payment, it wants the credit card details which I don't have.

 

If I click the transaction, there's no obvious Refund option. I did find More > Refund, but the warning implies it will be a complete refund, not a partial one.

 

So my questions are: (1) How can I refund a portion of the original payment to the original payment source, and (2) is there a way to make this easier in the future?

1 reply

I
IrizA
June 23, 2024

I can share some ways so you can refund the security deposit without needing to enter the credit card credentials, Ballentine . Let me walk you through the process.

 

To process a partial refund in QuickBooks, you have two options. The first option is to log in to your QuickBooks Payments and perform the partial refund. Afterward, you can E-mail or Print a copy of the receipt for your records.

 

Here's how:

 

Step 1: Log in to your account

 

  1. Log in to your QuickBooks Online (QBO) or QuickBooks Payments account. You can directly follow step 2 if you log in to your payments account.
  2. Go to the Gear icon located in the upper right corner.
  3. Choose Accounts and Settings.
  4. Click the Payments tab.
  5. Find the Merchant details section, then click the Manage account.

 

Step 2: Create a refund in QuickBooks Payments

 

  1. From the Activity & Reports dropdown, choose the Transactions option.
  2. Select the date range of the transaction.
  3. Click Search.
  4. Press the transaction you'd want to reverse, then select Reverse (Void/Credit).
  5. Enter the amount that needs to be refunded, then click Submit.
  6. You'll see the receipt on the screen. Select E-mail or Print to get a copy of the receipt.

 

Afterward, you'll see this transaction from your For Review tab or bank feeds. You can create a refund receipt, and then Match it with the downloaded transaction or Add this transaction so it can directly go to the Categorize tab.

 

The second option is to directly ask for the credit card number of your customer and then refund a security deposit in QuickBooks Online.

 

When you're ready to reconcile, visit this article to follow the step-by-step process: Reconcile an account in QuickBooks Online.

 

I'm still here whenever you have more questions about refunds in QuickBooks Payments or QBO. Please let me know in the comment section so I can assist you.

B
BallentineAuthor
June 23, 2024

Thank you for your help. That seems to have worked in getting the money back to her. I still can't find any record of it in the normal interface, but it's also still in Pending status, so I'm guessing that's why. I'm not entirely clear in how to link it with the original payment, but since it's a reversal, I'm hoping that happens automatically (creating a Refund Receipt didn't work, because it wanted payment details).

 

I also noticed in the first link you sent, in the "Refund a credit card payment for a sales receipt..." link apparently an option should appear to edit the refund amount, instead of refunding the entire payment. If that's correct, would that be a more streamlined approach or would it then ask for the credit card information?

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Carneil_C
June 23, 2024

Thanks for your prompt reply, @Ballentine.

 

I'll add information to help you achieve your goal of refunding a payment in QuickBooks Online (QBO).

 

Yes, you're right. It would be best to edit the amounts or items if you need to issue a partial refund for the payment. Then, credit card refunds can only go back to the original card used. From there, you won't need to ask for the credit card information from your customer. Otherwise, you might need to reach out to your customer for verification.

 

I'll add this article again for more details: Void or refund customer payments in QuickBooks Online.

 

Also, this resource can give you insights about what fees you could be charged for a refund or voided payment: Understand fees for refunds or voided transactions.

 

Please don't hesitate to leave a comment below if you have more queries about refunds or any other transactions in QBO. I'll get back to this thread to help. Take care always.

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