Refunding Customers

Due to the current ‘unpresidented times’ we are having to refund a large number of customers for services paid for in advance that have now been cancelled. It’s stressful times and I’m sure we are not the only company taking a hit, but any help would be great.

I would like advice if possible on the methods & the best/low cost way to refund.

We took the payments through Stripe and direct bank transfers.

The Stripe is the main issue as we can’t find any info on their complicated system.
We know how to refund, but:

  1. the money has been paid out to our bank already,
  2. if we refund how do we get the money back in the stripe acc?
  3. are we charged again for each refund by stripe?

For bank transfers we can get their bank details and refund, but:

  1. We presume we refund first through our bank
  2. wait for it to come through the bank feed on QF and then tag it as a refund to the original invoice?
  3. or is there another method.

If we are charged by stripe, could we refund the ‘Stripe payments’ via bank transfers instead and then tag in the merchant account? This would help where/how we pay from.


I don’t know if Stripe charge although I expect that they do.
Raise credit notes, refunding customer by bank transfer from the Stripe Holding Account
Tag as a transfer when Stripe debit you

For bank transfers I would simply reverse the system that you use for invoices. I would think that being consistent with your current systems is best,.
If you only create an invoice to record receipt of funds as part of the bank tagging process then what you are propose sounds fine.
If you invoice first and then tag receipts to the invoice then I would be more inclined to raise credit notes in advance.

You can always refund Stripe payments by bank transfer or cheque, raising a credit note against the original invoice. There is a risk in doing this in that the client won’t match up the refund and original payment and claim a chargeback. (Especially if the staff member who used the card isn;t the one who sees the refund)

From what I remember, stripe charge a percentage plus a fixed fee per transaction, and if you refund the customer then they refund the percentage but not the fixed fee.

Thanks all so far, I have been reading up on credit notes as we’ve not used them before. We issue invoice than tag, so will use a credit note and refund.

I’ll put some notes here just in case anyone is looking at the thread in future.

I managed to get through to a Stripe ‘person’. They do not charge to do a refund (although you do not get original trans fees back) and they allow a certain amount of ‘negative’ in stripe account before ‘attempting’ to retrieve the money from your bank account (they can’t automatically from some accounts). but we can’t transfer any funds in ouselves, we have to see whether they take it or ask for it it seems!

Qs. For those of our customers who ask for their funds to be kept for future events/services, is it good practice to issue a credit note, but not actually pay them, just click hold on their account? in case it goes into next financial year? or just leave the invoice as paid and adjust when they re-book?
thanks again.

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