Cloudbeds Payments - How to Process Refunds

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With Cloudbeds Payments refunds back to your guest’s credit card can be submitted right from your Cloudbeds PMS - this article will walk you through submitting a refunds to your guests.

Refunds of transactions made via the terminal will also be processed directly through the Cloudbeds PMS.

Do you have questions about refunds? Please check the following article: Cloudbeds Payments - Refunds - Frequently Asked Questions

Background

For a better understanding about the refund process, below you can find some quick definitions of relevant terms:

  • Refund to credit card: When an original sale was made by credit card, you can refund the transaction to that same credit card. All credit card refunds are final and cannot be undone. Original processing fees are not reversed when a transaction is refunded.
  • Returned: In your Cloudbeds software, you will see the return amount in red font on the folio screen after a transaction has been returned.
  • Gateway Refund: In your Payment Processing Report, a refunded transaction will be displayed as Gateway Refund under the Payment Types
  • Void: With Cloudbeds Payments, we process and settle a transaction instantly -  once a transaction is settled, it can no longer be voided (you can still void an authorization). If you make a mistake when processing a payment, you need to refund the transaction. 

What kind of functions does Cloudbeds Payments feature allow?

Refund Functions YES / NO
Full Refund YES
Partial Refund YES
Void* NO
Refund to a Different Credit Card NO

*Void option is available for authorization only. You can release an authorization by clicking the void button on the Credit Card Details page. See article: Cloudbeds Payments - How to Authorize Incidentals

How to refund a transaction inside the reservation
  1. Navigate to the Reservation and access the Folio tab
  2. Click the gear icon next to the transaction made through Cloudbeds Payments
  3. Click Refund Transaction
  4. Enter the amount to be refunded (by default it will be the full amount of charge but this can be edited to any amount)
  5. Click Process Refund

This process also applies for when the original payment was made through the Cloudbeds Payments terminal. This refund will also be processed directly through the Cloudbeds PMS.

Lviv hotel - Reservations - Google Chrome

As another option, you can also click on Add/Refund Payment dropdown menu and select Refund Payment.

[Demo] Tessa Swier Hotel - Reservations - Google Chrome

The record of the refund will be displayed on guest's folio as shown below:

How to process a partial refund
  1. On the guest folio, click the gear icon next to the transaction made through Cloudbeds Payments
  2. Click Refund Transaction 
  1. Enter the desired/partial amount to be refunded
    • by default it will be the full amount of charge but you can edit in order to make the partial refund
  2. Click Process Refund
Lviv hotel - Reservations - Google Chrome
How to refund a transaction made on House Account

Transactions not related to a reservation can be processed via the terminal via the House Accounts. You can refund the payment by following the steps below.

This process also applies for when the original payment was made through the Cloudbeds Payments terminal. This refund will also be processed directly through the Cloudbeds PMS.

  1. Go to House Account.
  2. Select the house account where the transaction was made.
  1. Use the filter to find the transaction you would like to refund.
  1. Locate the transaction and click the gear icon next to the column Credit.
  2. Select Refund.
  1. Double-check the credit card and Amount, then, click Process Refund.
  1. If you have Payment Allocation feature enabled, you may allocate the refund.
  1. The refund transaction will appear in blue with the amount in bracket

House Account transactions will still be recorded on Cloudbeds PMS. The details of the refund can be found in the respective House Account and in the reports: Payment Processing Report,Transactions Report.

If you are refunding a transaction not made via Cloudbeds Payments

If you utilized a processor that was not Cloudbeds Payments Processor to make the charge, and then switched to Cloudbeds Payments, please check the following steps.

If your previous payments processor has a "direct" interface such as PayuLatamViaOS or PayuLatam you will need to:

  1. Switch the gateway setting under Payment Options to your previous processor
  2. Submit the refund
  3. Switch the gateway back to Cloudbeds Payments

Please check how to perform these steps on How to switch the gateway setting section below. If you have any questions about your previous processor interface, reach out to our support team.

How to switch the gateway setting

For processors that have "Direct Connection" as mentioned above, you will need to:

Option 1: Switch the payment gateway and process the refund on myfrontdesk

  1. Access Payment Options
  2. Click on Change to switch the gateway setting to your previous processor
  3. Submit the refund by following the steps on this section: How to refund a specific transaction processed in the guest's Folio
  4. Once you submitted the refund, switch the gateway back to Cloudbeds Payments under Payment Options

Option 2: Process the refund from your previous merchant account

If you prefer, you can log into your previous merchant account gateway and manually submit the refund

The steps to submit the refund varies according to each gateway - Contact the payment gateway support team directly if you need any help. Once done, record the refund on myfrontdesk:

  1. Record the refund on the Cloudbeds PMS by clicking on Folio
  2. Click on Add / Refund Payment
  3. Select Refund Payment
[Demo] Tessa Swier Hotel - Reservations - Google Chrome
  1. Select the Payment Type - select the credit card that you processed the refund on the merchant account
  2. Refund Type - select Capture / Note Existing Refund - it means that you've already refunded the transaction and you are only adding the refund on guest's folio as a record
  3. Add the desired Refund Amount
  4. Click on Add Refund
[Demo] Tessa Swier Hotel - Reservations - Google Chrome
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