Issue credit card refund for canceled order?

How do I issue and apply a credit card refund to an unapplied payment?

We collect an advance deposit from our customers for work to be performed. That payment is recorded and retained an an available credit until the job is invoiced.  In rare cases, we need to refund the customer deposit.  If the deposit was paid by credit card, we want to issue  the refund by credit card, and apply the refund against the specific deposit payment record for the customer.

If I create a credit memo/refund for the customer and save it, both the deposit payment (a positive value) and the credit memo amount (a negative value) show up in my Accounts Receivable register.  However, if I try to "Use the credit to give refund"  I can find no way to assign the credit amount to the specific payment by the customer.  In this situation, this is critical for us.

How can I apply this credit to this specific payment?



Hello there, techineer.

I can share some information about the credit card refund process in QuickBooks.

You can issue and apply a credit card refund to your customer, however linking the payment and refund transaction is not possible. Only those open transactions (such as invoice, bill and etc.) can be linked.

If you wish to issue a refund through credit card, just follow these steps:

  1. Click Customers.
  2. Choose Create Credit Memos/Refunds.
  3. Enter the necessary information.
  4. Click Use credit to give refund at the top.
  5. For Issue this refund via, choose the credit card (see screenshot).
  6. Click OK.
  7. You can add a memo that will serve as your reminder that this refund is for the canceled order.
  8. Click Save & Close.

That should issue a credit card refund to the canceled order. Keep me posted if you need anything else. Have a wonderful day!

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IntuitHoneyLynn , Community Support Specialist
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