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      How do I refund a payment?

      If your Client is no longer using your products or services, you may need to issue a refund. You can process the refund directly in FreshBooks (if payment was made via FreshBooks Payments or Stripe) or manually outside of FreshBooks, and then update it on your Invoice after.

      Process a refund in FreshBooks (online payments)
      Reflecting a refund in FreshBooks

      ⚠️ Note: For online payments the refund window is 60 days after the payment date, and 90 days for payments made via ACH with Stripe. If you're looking to refund payments beyond this date you will need to reach out  to Stripe or WePay (FreshBooks Payments) support directly for help.

      Process a Refund in FreshBooks

      Process a refund for an online payment (made via FreshBooks Payments & Stripe)

      1. Go to the payments section of your FreshBooks account 
      2. Hover over the payment you are refunding (if this option does not appear you may be outside of the refund window) Screen_Shot_2020-09-23_at_10.44.37_AM.png
      3. Click the refund icon that appears on the right hand side
      4. On the refund screen choose Full Refund, or Other Amount if you’d like to specify an amount  
      5. Enter a reason for the refund 
      6. Click on the green Refund button to process your refund

      Screen_Shot_2020-09-23_at_10.46.39_AM.png

      What happens after you process a refund

      After issuing a refund in FreshBooks for an online payment, the original payment will be adjusted to reflect the refunded amount, and the invoice balance will also change to an outstanding amount. See section “Reflecting a refund on your invoice” below for further steps. 

      Screen_Shot_2020-09-23_at_10.48.17_AM.png

      Refund breakdown by payment processor 

      Payment Processor Refund Window Processing fee refunded Time to clear
      FreshBooks Payments
      • 60 days from payment date (ACH + Credit Card)
      • Full refund: Yes
      • Partial refund: No
      3-7 business days
      Stripe
      • 60 days from payment date for credit card
      • 90 days from payment date for ACH. 
      • Fees are not refunded
      3-7 business days

       

      Reflecting a refund within FreshBooks

      Adjusting your payment (for manual refunds)

      If your refund was not processed through FreshBooks Payments (WePay) or Stripe, you will want to manually adjust the original payment that was made by your client. 

      1. Go to the Invoices section
      2. Click on the Invoice you refunded
      3. Scroll down to the All Payments For area and click on the payment
      4. Adjust the payment amount by reducing it based on the amount you refunded
      5. Leave a comment in the Payment Notes box to indicate the refund 
      6. Click Save to finish

      Adjusting your invoice

      1. Go to the Invoices section of your FreshBooks account
      2. Click on the Edit button on the Invoice
      3. Add a line item called Refund (or something similar) with the total you refunded as a negative valueNegative line item on an invoice.
      4. Click Save to finish.

      NegativeLineItem.png

      Viewing your previous refunds

      You can view all of your past refunds in the online your Online Payments section of your account.

      1. Click on the gear icon on the top left corner
      2. Click on Accept Online Payments 
      3. Click on the filter icon and filter by refunded

      If you are on a Select plan, refunded transactions will also be surfaced in your FreshBooks Payments Report (FreshBooks Payments only) 

       

      FAQs

      Who can process refunds on my account?

      Only the business owner of a FreshBooks account has the permission to process refunds. 

      Why don’t I see the option to refund my payment?

      You can only process refunds within FreshBooks if the payment was made via Stripe or FreshBooks Payments and if it’s within 60 days of the payment date. Note: ACH for Stripe has an extended refund window of 90 days. 

      What does my client receive after I issue a refund?

      Once your refund is processed your client will receive an email confirmation detailing the refund amount and a note that the refund may take 3-10 business days to appear on their credit card statement.

      What happens in FreshBooks if I refund the payment from within my WePay or Stripe account? 

      If you process your refund outside of FreshBooks from within your Stripe or WePay dashboard, the payment will be adjusted the same way it would if you processed your refund directly from within FreshBooks.  

      Can I issue a refund for a payment made via Checkout Links?

      Yes, you can issue a refund for a payment made via checkout links as long as it was processed through Stripe of FreshBooks Payments. 

      1. Go to the Payments section of your account
      2. Click on the Checkout Links Payments tab
      3. Hover your mouse over the payment you would like to refund
      4. Click on the refund icon and follow the steps to process.

      Once a refund has been processed the associated checkout link payment will be adjusted with the status refunded.

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