Chargeback in Benji Payments

When a chargeback occurs, it’s important to understand that the customer has not actually paid, even if the payment previously appeared successful. To keep your accounting accurate, some manual steps are required.

What happens after a chargeback

• You receive an email notification when a chargeback occurs.

• If the transaction had already settled, the funds are debited from your account via a payout adjustment.

• Benji Pays does not automatically update your accounting system, so the invoice will not reopen on its own.

Required Accounting Actions

The steps you need to take depend on when the chargeback occurred: 

Chargeback before settlement

• Void the payment in your accounting system.

• The invoice will automatically return to outstanding.

Chargeback after settlement

• The original deposit must remain on your books since the funds were received.

• Record the chargeback withdrawal (typically via a journal entry).

• Unlink the original payment from the invoice so the invoice reopens to outstanding.

This ensures:

• Bank activity remains accurate

• Customer balances correctly show payment is still due

• A clear audit trail is preserved

Step-by-Step Guidance for the QuickBooks

Step 1: Create a Journal Entry

1. Go to Company → Make General Journal Entries.

2. Create a new journal entry with:

   • Debit: Accounts Receivable (AR)

     • Select the customer name

     • Amount = chargeback amount

   • Credit: Bank account or clearing account

     • Same amount

3. Add a memo such as:
   “Chargeback adjustment – reopen invoice”

4. Save the journal entry.

This records the money coming back out of the bank due to the chargeback.

Step 2: Edit the Original Payment

1. Open the original invoice.

2. Click the linked payment.

3. Edit the payment:

   • Unlink it from the invoice

   • Link it to the journal entry you just created instead

4. Save.