Important Terms:
ACH: ACH is an electronic funds transfer (EFT) between two bank accounts using the Automated Clearing House (ACH) network. It's a secure way to transfer money without using paper checks, wire transfers, or cash.
Void: A void transaction immediately reverses a credit or debit card payment before any funds are moved from the customer’s account to the business’s account. ACH, credit and debit card voids are possible, if you process the void before the batch cut-off time for the transaction.
Refund: A refund is returning a settled payment to the customer. Refunds can be processed as partial or full refunds.
Important Timelines:
Credit Card Payments
- Payments are able to be refunded up to 45 days in the past.
- A credit card payment that was processed more than 45 days ago, would need to be refunded to the customer externally from Service Fusion and an internal refund payment would need to be processed in Service Fusion.
ACH Payments
- Payments are able to be refunded up to 12 months in the past.
- An ACH payment that was processed more than 12 months ago, would need to be refunded to the customer externally from Service Fusion and an internal refund payment would need to be processed in Service Fusion.
Refunds can be expected to arrive in your customer's account within 10 days of the refund being processed. If your customer does not see the refund and they still see the original charge after 10 business days, they should reach out to their bank for more information.
If refunding an ACH payment in FusionPay, it is best practice to wait for the payment to settle before performing the refund. If refunded before the ACH payment settles, the funds will transfer from the Merchant Account to the customer's bank account immediately. This could be a problem if the ACH payment were to decline for any reason.
Void and Refund Fees:
ACH and Credit Card Voids
- Only the authorization fee is charged if the transaction is voided.
- The record of the transaction will disappear.
ACH Refunds
- Both the authorization fee and the processing rate are charged for both the initial charge and for the refund transaction.
Credit Card Refunds
- Both the authorization fee and the processing rate are charged for the initial charge.
- The refund transaction will only be charged the authorization fee.
Syncing with QuickBooks:
- Voids cannot sync to QuickBooks Desktop or QuickBooks Online.
- Refunds can sync to QuickBooks Desktop. They will sync from Service Fusion into QuickBooks Desktop as a refund payment and a credit memo. This will need adjusted manually in QuickBooks Desktop.
- The refund payment will need to be manually entered into QuickBooks Online, as refunds can't sync from Service Fusion to QuickBooks Online.