Credit Card Refunds: General Information

On the Payments and Applications (AR302000) form, you can quickly create customer refunds for documents of the Payment, Prepayment, and Credit Memo types. The system automatically populates settings based on the information from the payment, prepayment, or credit memo to which the refund will be applied.

Learning Objectives

In this chapter, you will learn how to process a refund for a payment paid by a credit card.

Applicable Scenarios

You process a refund of a credit card payment if the payment amount is greater than its applied amount and the payment retains its Open status.

For details of applying customer refunds to credit memos and prepayments, see Refunds: General Information.

Refunding of a Payment

If a payment with the Open status is opened on the Payments and Applications (AR302000) form, when you click Refund on the More menu, the system performs the following actions:

  1. Verifies that the payment does not have unreleased applications or unreleased documents of the Voided Payment type.

    If at least one unreleased application or voided payment is found, the system displays an error, and the processing is terminated.

  2. Creates a document of the Refund type.
  3. Fills in the details of the refund with the default data and the copied information from the original payment.
    Note: If the Integrated Card Processing feature is enabled on the Enable/Disable Features (CS100000) form, the Application Date of the refund must be at least one day later than the Application Date of the original payment, otherwise the transaction will not be processed by the processing center and the system will display an error.
  4. Applies the refund to the original payment.

Data Automatically Populated for a Refund

The following tables list the data that is automatically populated when a refund is created from a payment on the Payments and Applications (AR302000) form.

Table 1. Automatically Filled Data in the Summary Area
UI element Description
Type Refund.
Application Date The current business date.
Customer The customer of the original payment.
Location The location of the original payment.
Payment Method The payment method of the original payment.
Use Orig. Transaction for Refund A check box that appears in the refund if unlinked refunds are allowed for the processing center. The check box is selected for card-based payment methods if the original payment has an active card transaction.
Orig. Transaction The number of the original transaction, which is inserted if the original payment has an active card transaction.
Card/Account Nbr. The customer payment method, which can be either of the following:
  • The customer payment method of the original card transaction if this transaction is active.
  • The customer payment method of the original payment if there is a value in the Card/Account Nbr. box in the original payment and there are no active card transactions associated with the payment.
Proc. Center ID The identifier of the processing center, which can be either of the following:
  • The ID of the processing center of the customer payment method if the customer payment method was identified and inserted in the Card/Account Nbr. box.
  • The ID of the processing center of the original card transaction, if the Card/Account Nbr. box is empty.
Cash Account The cash account of the original payment.
Currency The currency of the original payment.
Payment Amount The available balance of the original payment.
Table 2. Automatically Filled Data on the Financial Tab
UI element Description
Branch The customer's branch.
AR Account The customer's AR account.
AR Subaccount The customer's AR subaccount.
Table 3. Automatically Filled Data on the Documents to Apply Tab
UI element Description
Branch The customer's branch.
Doc. Type The type of the original document (Payment or Prepayment).
Reference Nbr. The reference number of the original payment.
Customer The customer of the original payment.
Amount Paid The amount of the refund.
Date The current business date.

Workflow of Processing a Credit Card Refund

For a refund created for a credit card payment, the typical process involves the actions and generated documents shown in the following diagram.

Figure 1. The workflow of processing credit card refunds