Refund best practices only work on Payments executed through Paystand.
Important Considerations
- It’s important to note that ACH and Bank Network payments can be refunded only after the funds have been deposited in the merchant's bank account.
- If an ACH payment refund is created before that, it will NOT go through.
- Credit Card payments will have to be refunded after the clearing time has passed.
- After following the below instructions and saving the Refund Record, if the refund does not populate a PayStand Event, it means that the refund did not go through. Please go back and confirm that the steps were correctly followed.
- The refund must be processed for an equal or lower amount of the payment. Otherwise, the refund will not be processed.
What refund method should I use?
- When creating a refund on an Invoice Record, if the invoice was originally paid
through the Sales Order Record (Customer Deposit Record), the steps to follow are
“Sales Order/Customer Deposit Refund.”
Note: The suggested navigation path is based on the Administrator role. Please keep
in mind, the center bar is different for each role. - When you want to refund a customer's invoice and need to make a new payment to that same invoice, then you will use "Refunding a PAYMENT RECORD by Un-applying from the Invoice"
Refund Methods
A. Refunding Invoice/Payment Record
Refunding a PAYMENT RECORD through the Credit Memo: (Preferred)
1. From an Invoice Record that was paid through Paystand, click the Credit button to create a Credit Memo.
2. Save the Credit Memo.
3. Click the Refund button to refund the Credit Memo.
4. Make sure the Account the Refund is being assigned to is Undeposited Funds.
5. Save the Customer Refund Record.
B. Refunding Invoice/Payment Record
Refunding a PAYMENT RECORD by Authorizing a Return.
Note that this option may be disabled in some accounts so the best way is through Payment Record Refund Method A.
1.- From the Invoice Record that was paid through Paystand, click on the Authorize Return button to initiate the refund.
2.- Save the Return Authorization to generate it.
3.- Approve the Return by clicking on Approve.
4.- Refund the Return Authorization by clicking on Refund.
5.- Save the Credit Memo that was created by clicking on Refund.
6.- Refund the Credit Memo. Make sure the Account the Refund is being assigned to is Undeposited Funds.
7.- Save Customer Refund
C. Refunding Sales Order/Customer Deposit Refund
Follow the standard Netsuite process to refund a Customer Deposit
Note: Make sure the Account the Refund is being assigned to is Undeposited Funds
1. From anywhere in Netsuite, head to >Transactions> Customer> Issue Customer Refund.
2. Select the Customer Record that is receiving the refund in the Customer field.
3. Once the Customer Record is selected scroll down to the Apply tab.
Make sure the Account the Refund is being assigned to is Undeposited Funds.
4. Once in the Apply Tab click on the subtab Deposits.
5. Once you click Deposits, check the box of the Customer Deposit you wish to refund.
6. Type the amount you wish to refund in the Amount field.
7. Since this is not a Refund from a Transaction, the customer must select the Payment Method that was used for the Customer Deposit:
● Click on the Refund Method Tab
● Select the Paystand Payment Method that was used for the Customer Deposit in Question:
-Paystand Card
-Paystand ACH
-Paystand Bank
Only select the above payment methods to process the refund successfully.
8. Make sure the Account the Refund is being assigned to is Undeposited Funds .
9. Save the Customer Refund.
Note: If a non-Paystand related Refund Method is selected, the refund will not go through.
D. Refunding a PAYMENT RECORD by Un-applying from the Invoice
- This method is also for reopening up the invoice and that it is only possible when the accounting period is still open
- This method is to be used on duplicate payments.
- This method is suggested for refunding Invoice + Convenience Fee amounts
1. From the PAYMENT RECORD that is applied to the Invoice Record, click on Edit.
2. From the Apply subtab, reduce the amount that is applied to the Invoice Record (and Fee Revenue if desired) by the amount that you wish to refund.
3. Save the Payment Record.
4. Create a Customer Refund. In the main menu in Netsuite go to the option Transactions > Customer > Issue Customer Record.
5. Find the Customer Record that is receiving the refund in the Customer field.
6. Once in the Apply Tab click on the subtab Credits.
7. Check the box of the Payment you wish to refund.
8. Since this is not a Refund from a Transaction, select the Payment Method that was used by the Payment Record:
● Head to the Refund Method Tab.
● Select the Paystand Payment Method that was used for the Payment Record in question (PaystandCard, Paystand ACH, Paystand Bank.)
9. Make sure the Account the Refund is being assigned to is Undeposited Funds.
10. Save the Customer Refund. Note: If a non-Paystand related Refund Method is selected, the refund will not go through.
Note: If a non-Paystand related Refund Method is selected, the refund will not go through.
General Notes
- ACH payments can be refunded only after the funds have been deposited in the merchant's bank account.
- If a refund to an ACH or Paystand Bank payment is created prior to that, it will NOT go through.
- Credit Card payments can be refunded as soon as the payment record gets created in Netsuite.
- These methods will only work on Payments done via Paystand. If, after saving the Refund Record, it does not populate a Paystand Event, it means that the refund did not go through.
- The merchant should go back and confirm that the steps were correctly followed.
- When a refund is done through an Invoice, the system should automatically auto-populate the Payment Method