Invoices (Advanced): Process Refunds

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When you issue a refund to a client, the money is always returned to the same credit card account the client used to make the initial payment. Read on to find out more about returning funds to clients.

Covered here:

• Refunding Payments
• Reducing a Client’s Credits, Explained
• Your Refund History

Refunding Payments

A refund can be issued by a firm owner, Admin, or any employee who has been given access rights to manage payments.

To refund a payment:

1. In the client’s profile, click on Invoices in the menu bar, then open the Payments tab.

2. In the Payments list, find the payment you’d like to refund, then click on the eye icon to its right.

3. Click on the Refund Payment link in the top corner of the View Payment box.

4. You can refund the payment either in full or partially. To refund only part of a payment, select Partial, and then enter the specific amount. The total amount to be refunded will be displayed at the bottom of the screen.

5. Specify the reason for the refund, then click Issue Refund.

By default, the client is notified about the refund. If you don’t need to notify the client, deselect the Send client email notification checkbox.

What happens when you issue a refund, depending on the payment type:

• Payments made through Stripe/CPA Charge: The payment is marked as refunded, and you subtract the refunded amount from the client’s credit balance, either fully or partially. The client receives a refund in the credit card or bank account they used for the payment. Stripe/CPA Charge immediately submits a refund to that account. Depending on the bank, it takes 5 to 10 business days to show up in the client’s account.
• Offline payments The payment is marked as refunded, and you subtract the refunded amount from the client’s credit balance, either fully or partially.

Reducing a Client’s Credits, Explained

When you issue a refund, you must decide what you want to do with the client’s credits. By default, the client’s credit balance will be reduced by the amount of the refund, but you can also choose not to reduce it or to reduce it by another amount. Keep in mind:

• A client’s credit balance can’t go below zero. For example, a client has a $50 credit balance, and you are issuing a refund of $300. You can reduce their credit balance by no more than $50.

• You can’t reduce a client’s credit balance by an amount greater than the refund. For example, a client has a $350 credit balance, and you must give them a $200 refund. You can reduce their balance by no more than $200.

• You can leave the client’s credit balance as is. For example, a client isn’t satisfied with work you’ve provided, so you want to give them a refund—but you don’t want to reduce their credit balance, because you want them to continue having credit in their account for future services. Leave their credit balance as is by not subtracting anything from it.

Your Refund History

Once a refund has been issued, the refund will be displayed inside the Payments tab of the client’s profile.

Click on the eye icon to see additional information about a payment. The refund history of the payment will be displayed at the bottom of the View Payment box.