How to Process Refund Through Payment Gateway

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

To refund other payment types or payments which were not added through the payment gateway, refer to: How to Add/Post Refund to Reservation as a Record (Without Using Payment Gateway Processing)


  • To refund a transaction/payment using your payment gateway, make sure you have the payment gateway enabled in our system and the transaction which needs to be refunded was made inside your Cloudbeds account.
  • Some gateways may have a limit for when the refund can be processed. For example, only allows the transaction to be refunded within the past 180 days of its settlement. For more information, contact your payment gateway support team.
  • If you are using Cloudbeds Payments, check the following article: Cloudbeds Payments - How to Process Refunds

Refund using the gear icon

  1. Access the Folio tab inside the reservation.
  2. Click the gear icon next to payment processed by the gateway.
  3. Click Refund Transaction.

Clicking Refund Transaction for real charges (payments processed through the gateway) will delete the transaction from the Folio and refund the amount to the guest.

  1. Enter the amount to be refunded (by default it will be the full amount of charge), but you can change to process a partial refund.
  2. You can allocate the refund to a specific revenue item if you have this functionality enabled. Learn more: Payment Allocation
  3. Click Process Refund.

Refund using the option Add / Refund Payment

  1. In the Folio, click Add/Refund Payment and select Refund Payment.
  1. Select the credit card which has been previously charged.
  2. Select the guest to which the refund will be assigned to.
  3. Select the desired folio.
  4. Select Refund Payment Gateway Transaction.
    • If you select a credit card which was already charged, this option will be selected by default.

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

  1. Select the transaction to refund (if there were several charges on one card).
  2. Enter the amount to be refunded.
    • If you are processing a partial refund, note that not all payment gateways support partial refunds.
    • Refunding a greater amount than charged is not possible.
  3. Post with current date and time: When this box is checked the current date and time will be posted for the transaction. You can uncheck if adding a transaction for some time in the past.

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


  • The date of a processed refund can only be the current date and can't be set to the past or future even if the Smart Date option is off (Smart Date puts a date of the transaction as today, but disabling it doesn't mean you can process the refund for a future or past date).
  • This functionality does not work with cash payments.
  1. Enter the notes if needed.
  2. Click Add Refund.
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