There are times when you may need to refund a customer's payment for reasons unrelated to a specific invoice, such as a customer accidentally paying with the wrong card. Dappr allows you to refund a captured payment directly, which returns the funds to the customer's original payment method.
This guide explains how to refund a payment directly from the payment's record. It's important to understand that this process is different from issuing a credit note.
When to refund a payment vs. issue a credit note
The method you choose for a refund depends on the situation.
Use a direct refund when: The goal is simply to return a customer's money without affecting an invoice. For example, if a customer pays an invoice but then realizes they used their personal card instead of their business card, you could refund the original payment so they can pay again with the correct card.
Use a credit note when: You need to reverse all or part of a sale recorded on an invoice. This is the correct procedure for handling returns, cancellations, or correcting an invoicing error. Issuing a credit note adjusts your sales records accordingly.
How to issue a direct refund
You can only issue a refund for a payment that has been successfully captured.
From the main menu, navigate to Sales, select Billing from the top menu, and then click on the Payments tab.
Find and click on the specific payment you wish to refund. This will open the payment's dedicated page.
In the "Refunds" section, click the Refund payment button.
A "Refund a payment" pop-up will appear.
Amount to refund: Enter the full or partial amount you wish to refund.
Reason: Select a reason for the refund from the dropdown menu (e.g., "Requested by customer").
Internal note (Optional): Add any notes for your own records.
Click Issue refund to confirm.
The refund is now initiated. Please note that it may take 3-7 business days for the funds to settle in your customer's account, depending on their bank and the payment method. Additionally, the original payment processing fees are not refunded when you issue a refund.
After the refund is processed
Once the refund is issued, it will be listed on the payment's dedicated page. You can click on the refund's reference ID to view a pop-up with more detailed information, including its status.
When the refund is processed, a debit transaction is automatically added to the customer's Credit balance. You can view this by navigating to the customer's dedicated page (Sales > Customers > Select customer).
A note on card authorizations
It is not possible to "refund" an uncaptured card payment (an authorization). An authorization is only a temporary hold on funds, not a completed charge. To release the hold, you must cancel the authorization instead. Click the Cancel authorization button on the same dedicated payment page.