How to Process Refund Through Payment Gateway

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Processing refunds (for transactions made through payment gateway in myfrontdesk) will send refunded amount to the previously charged guest's card. This tutorial will walk you through the options on how to refund a payment made through the payment gateway in myfrontdesk.

For instructions on refunding other payment types or payments which were not added through payment gateway, refer to this article.

Important: To refund a transaction/payment using your payment gateway, make sure you have gateway enabled in our system and the transaction which needs to be refunded was made inside your myfrontdesk account.

How To Process a Refund: Option 1

Refunding a specific transaction processed in myfrontdesk directly in guest's Folio:

  1. Navigate to Reservation and go to the Folio tab
  2. Click on the gear icon next to the transaction made through gateway in myfrontdesk
  3. Click 'Refund transaction' 
  4. Enter the amount to be refunded (by default it will be full amount of charge)
  5. Click 'Process Refund'

You can allocate the refund to a specific revenue item if you have this functionality enabled.

Learn more about payment and refund allocation in our Knowledge Base: Payment Allocation

If after clicking the gear icon next to transaction the system only offers the option to 'Void Transaction,' it means that the payment wasn't made through gateway and was added as a note (the guest wasn't actually charged so there is nothing to refund).

Clicking 'Void Transaction' for payments added as a note will delete the the transaction from Folio and update the balance due but not refund the guest.
Clicking 'Void Transaction' for real charges (payments processed through gateway) will delete the the transaction from Folio and refund the guest as well.

How To Process a Refund: Option 2

You may also refund a custom amount for a guest who has been charged through myfrontdesk.

  1. Navigate to Reservation and click 'Folio'
  2. Open the folio to add refund to
  3. Click on the 'Add/Refund Payment' button and press on 'Refund Payment'

4. Select the credit card which has been previously charged
5. Select the guest to which the refund will be assigned to
6. Select the folio to add refund to
7. Select 'Refund Payment Gateway Transaction'
(*if you select a credit card which was already charged - this option will be selected by default) 

It is very important to select 'Refund Payment Gateway Transaction' if you want to process a real refund.

Selecting 'Capture/Note existing refund' DOES NOT process refund to guest's card through the payment gateway, and refund will be added only as a record to guest's folio.

8. Select the transaction to refund (if there were several charges of one card)
9. Enter the amount to be refunded: by default the system will set it to the full amount of selected transaction, but you may enter a smaller sum in case you need to make a partial refund
*Please note that not all gateways support partial refunds. Refunding a greater amount than charged is not possible.
10. Enter the notes if needed
11. Click 'Add refund'

Smart Date is a feature that indicates payment or refunds getting added that should be time stamped for the current time. If an user is marking a payment for sometime in the past, it is possible to uncheck the Smart Date box and choose a date in the past.

Please Note:

- Please note that the date of processed refund can only be the current date and can't be set to the past or future even if Smart Date option is off (Smart Date option puts a date of transaction = today, but disabling it doesn't mean you can process refund for a future or past date)
- This functionality does not work with cash payments

You can allocate the refund to specific revenue item if you have this functionality enabled.

Learn more about payment and refund allocation in our Knowledge Base: Payment Allocation

Processing Refunds: Frequently Asked Questions
I have refunded the guest in myfrontdesk but he claims that he didn't receive the refund

1. In order to process refunds through myfrontdesk you need to have Payment Gateway connected in our system
2. Make sure the refund was actually processed, not added as a note (see instructions below)
3. For some gateways it takes 1 day or more to process the refund (please check 'How long does it take for refund to be sent to the guest?' section below for more information)
4. If you have followed the instructions and your guest still hasn't received the refund  - please contact us at support@cloudbeds.com mentioning the reservation ID or guest name

Where to check if the refund was added as a note or actually processed?

At the moment, the only way to check if the refund was processed through gateway or not is to check Credit Card logs:

  1. Go to Reservation Details
  2. Go to Credit Card section
  3. Click Logs
  4. (Optional) select credit card which was previously charged
  5. Check if there is a transaction type called 'Refund' as shown in example below
    The entry in credit card log called 'Refund' means that the refund has been processed through gateway in myfrontdesk.

You will also see the amount refunded through gateway on 'Details' tab

How long does it take for refund to be sent to the guest?

A number of payment companies require a business day between a charge being made and a refund request. How long it takes to process the refund to the charged card depends on the gateway. Many credit card companies and banks do not run/post transactions or refunds over the weekend. This isn't something our system is able to change since it's dependent on your payment processor, the customer's credit card company, and both yours and the customer's banks. Please contact your gateway support for details.

Can I process a partial refund?

It's possible to make a partial refund which is less than the previously processed amount. Most gateways support refunding partial amounts through our system, however a small amount of gateways may not allow this feature. This is because some gateways only identify a transaction's ID and not the amount charged. Please contact your gateway support for more details.

To process a partial refund through myfrontdesk, please follow the steps above.

Is it possible to delete refund record from guest's folio?

No, refund records can't be deleted from the guest's folio.
If the refund was added either as a note or actually processed to the folio by mistake, in order to make the guest's balance accurate you need to add payment (as a note or actually process it depending on the case) by clicking 'Add Payment'.

Have more questions? Contact Support

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