To perform a refund
Benji Pays offers two types of refunds.
1. Integrated Refunds where transactions are posted to your accounting system.
2. Non-Integrated "Error Correction" Refunds where transactions are not posted in your accounting system.
Which type of refund should you process?
If you are actually returning product or refunding a service, use the integrated refund process as it will ensure your accounting system is accurate.
If you accidentally charged the wrong card, or made some other error you need to correct, use the Non-integrated "Error Correction" Refund. This will refund the funds to your client's card, and you can then manually adjust your accounting system as needed.
Benji Pays needs a credit or credit memo created in your accounting system for the customer in order to process an integrated refund. First create the credit in your accounting system for the items or services being refunded, in the amount to be refunded.
Once you have the credit memo created in your accounting system, you will need to find the original transaction in Benji Pays under the Transactions menu using the Batch Results or Transaction Reporting menu links.
Once you find the transaction, you will see a column in the table titled "Actions", that column will have a yellow circular arrow, click that arrow. Select "Refund" as the transaction type, then choose the credit memo to associate the refund with and follow the instructions.
*Important Note*- Only check the "Error correction refund without a credit memo" box if you are not issuing a credit memo in your accounting system.
*Important Note*- If you are using a credit memo in your accounting system please select your Credit Memo from the "Select a QuickBooks credit note" drop down menu.
If the refund is approved by your gateway, Benji Pays will also create the necessary transactions in your accounting system to record the refund to the credit card and link it to the credit memo you created. The original invoice and payment are not altered in order to maintain the appropriate accounting transactions.
If the refund is declined, this could be due to one of the following reasons:
- The original transaction was already voided or refunded either partially or fully. You may make more than one refund against a purchase transaction, but the total of all refunds made on the transaction must be equal or less than the total of the original purchase transaction.
- The transaction amount is greater than the maximum refund amount limit on your merchant account - contact your merchant account provider and they can help you with this.
Integrated Refunds transactions when surcharging is enabled
In general, when performing refunds for transactions that had a surcharge enabled will be the same process as those without a surcharge.
For QuickBooks Online and Xero, refund transactions, as well as journal entries (QuickBooks Online) or spend money transactions (Xero) will be created by Benji Pays to reverse the surcharge.
QuickBooks Desktop refunds when surcharging is enabled work a bit differently. See below.
For QuickBooks Desktop, we are not able to link multiple transactions to a QuickBooks Credit Card Refund transaction. To make sure you refund and surcharge fees are reversed properly, when you create your credit memo, you will need to add a line item for your surcharge refund. This line item needs to be for an item that is mapped to your surcharge fees account in QuickBooks.
e.g. If the refund is for $100 plus 2% surcharges, you would create your credit memo with two lines:
1. $2.00 for the surcharge to an item mapped to your surcharge fees account
2. $100 for the product or services being refunded.
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