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Refund a payment or add a credit note

Pay money back on a payment, including a card payment through your own Stripe account, or lower what a customer owes with a credit note, each with a reason that stays on the invoice.

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All businesses

Checked against Pop Dispatch 0.1.0

You can pay money back to a customer, or lower what they still owe, from the invoice page. A refund returns money on one payment. A credit note lowers the balance without moving any money. Both need a written reason, and both stay on the invoice as a numbered record such as CN-0001.

Before you start #

Steps #

  1. Open the invoice. Scroll to the section "Refunds and credit notes". The table lists each note with its number, type, amount, who paid it back, reason, status, who made it and when. When there are none it says "No refunds or credit notes on this invoice."
  2. In the form "Refund or credit note", choose the Type: "Refund" or "Credit note". "Refund" shows only when the invoice has a payment with money left to pay back. "Credit note" shows only while the invoice has a balance.
  3. For a refund, choose the "Payment to refund". Each choice shows the method, how much is left to refund and the date received. The hint under Amount says "Up to" the most you can enter.
  4. Type the Amount and the Reason. The Reason is required.
  5. Choose "Refund" (or "Add credit note" for a credit note). A message confirms the result, for example "Refund of ... sent through Stripe (CN-0001)." The invoice total paid goes down by a refund, and a paid invoice becomes open or partly paid again.
  6. Check the table. The column "Paid back by" shows Stripe, Hand or "Credit on the invoice", and Status shows Recorded or Failed.

How each kind is paid back #

  • Card payment taken through your Stripe account: Pop Dispatch asks Stripe to refund it. The note is recorded only after Stripe accepts the refund, and Stripe returns the money to the customer's card. The column shows Stripe.
  • Cash, cheque, transfer or any payment taken outside Stripe: the form says "That payment was taken outside Stripe, so the refund is recorded as paid back by hand." You hand the money back yourself, and Pop Dispatch records that you did. The column shows Hand.
  • Credit note: the balance goes down by the amount, up to the balance. The column shows "Credit on the invoice". No money moves and no tax is counted for it.
Technical details
  • Routes: POST /invoices/:id/credit-notes (owner and manager) with kind (refund or credit), amount_cents, reason (1 to 300 characters) and an optional payment_id; GET /invoices/:id/credit-notes and GET /credit-notes?from=&to= (money roles).
  • A refund can be at most the money still refundable on that payment. When no payment is chosen, the newest refundable payment is used.
  • A credit adds a payment row with the processor credit_note, so ageing and statements agree with the invoice.
  • A refund lowers that payment's amount and the invoice's paid total and reopens the invoice. The credit note keeps the original amount.
  • A Stripe refusal leaves a note with the status Failed and its reason, and changes no balance.
  • The report "Refunds and credit notes" lists the notes for a date range. See "Run the calls, money and yard figures and download them as CSV".

If something goes wrong #

  • "Stripe refused the refund": the message after it comes from Stripe. Check the key in Settings, Online payments, then try again. A Failed note stays in the table and changes no balance.
  • "That is more than can be paid back.": lower the Amount to the figure in the hint.
  • "Type an amount more than zero.": enter an amount above zero.
  • The Reason box asks for a reason: write one, up to 300 characters.
  • The "Refund" choice is missing: no payment on the invoice has money left to refund.