How To: Reverse a Payment or Refund

Summary:

Discover the corrective steps to manage mistaken payments or refunds on an invoice effectively. This guide outlines the process for both scenarios, ensuring accurate financial transactions.

Uses:

• Correct payments taken in the wrong amount, method, or on the incorrect reservation.
• Rectify refunds issued with incorrect details, such as amount, method, or guest association.

Correcting a Payment 

When a payment is taken in the incorrect amount, payment method or on the incorrect reservation or guest, it can be corrected by completing a refund in the same amount with the same method.

Example: a payment that was taken as a Credit Card payment for $100 cannot be reversed, but a refund can be issued back to the card for $100. 

Step-by-Step Guide:

1. Navigate to the invoice with the mistaken payment in the Billing tab of the Reservation.
2. Click "Refund" at the top of the Billing tab.
3. Select "Other Amount" and enter the same amount as the mistaken payment. Ensure the refund method matches the original payment method.
4. Click "Continue."
5. If you don't want the guest to receive an email notification, uncheck the "Send Email Confirmation To Guest" box.
6. Click "Submit Payment."

Issuing a refund in the same amount and method will restore the invoice to its prior state, allowing you to initiate a payment with the correct details.

The image below shows the Payments and Invoice History sections of an invoice with a mistaken payment corrected by issuing a refund in the same amount. 

Correcting a Refund 

When a refund is given in the incorrect amount, method or on the incorrect reservation or guest, it can be corrected by completing a payment in the same amount with the same method.

Example: a refund that was issued with the Transfer External payment method for $100 cannot be reversed, but a payment can be added on to the reservation for $100. 

Step-by-Step Guide:

1. Navigate to the invoice with the mistaken payment in the Billing tab of the Reservation.
2. Click "Pay" at the top of the Billing tab.
3. Select "Other Amount" and enter the same amount as the mistaken payment. Ensure the refund method matches the original payment method.
4. Click "Continue."
5. If you don't want the guest to receive an email notification, uncheck the "Send Email Confirmation To Guest" box.
6. Click "Submit Payment."

Adding a payment in the same amount and method will return the invoice to its previous state, allowing you to issue a refund with the correct details.

The image below shows the Payments and Invoice History sections of an invoice with a mistaken refunded corrected by adding a payment back in the same amount. 

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Most Common FAQ:

Q: Can a payment or refund be entirely reversed?

No, but you can correct them by issuing a refund for a payment or adding a payment for a refund.

Q: Why is it important to include notes when correcting transactions?

Notes aid in internal auditing, providing clarity on the reasons behind corrective transactions.

Q: What should I do if a payment or refund was issued with the wrong method?

Correct it by issuing a refund or payment with the correct method, ensuring accuracy in financial records.

Q: Can I avoid notifying the guest when correcting a payment or refund?

Yes, uncheck the "Send Email Confirmation To Guest" box during the corrective transaction.

Q: How does correcting a refund affect the invoice balance?

Adding a payment in the same amount will return the invoice to its state before the mistaken refund.

Q: Is there a recommended practice for correcting payments and refunds?

Always include notes explaining the reason for corrective transactions to facilitate internal auditing.