How do you handle overpayments, checks that don’t clear the bank, or checks entered for the wrong account? Make a payment adjustment! Payment adjustments can be used to refund or reverse payments.
When a client pays more than is due, you may want to refund part of the payment. In order to refund a payment, the payment must have been final billed and updated. Additionally, only the unapplied portion of a payment can be refunded.
In some situations, you may need to reverse the entire payment. Typically, this is because either a check didn’t clear the bank or a payment was entered to the wrong account. Like refunds, a payment can only be reversed if it has already been final billed and updated. However, payments can be reversed regardless of whether a portion is currently unapplied or not.
When refunding or reversing payments, the following integration options are available, when applicable:
To reverse or refund a payment
Payment adjustments provide an easy way to refund an amount back to your clients, or to reverse payments when a mistake was made.
There are many reasons why you might want or need to credit or refund a client’s account. Likewise, there are many ways to make a credit to a client’s account. While the easiest way may seem to be entering a credit transaction (i.e., entering a negative fee or cost), this may not be the best way to handle the situation.
In Knowledge Base Article R11730, “Best Practices When Applying Credits,” we discuss the different methods of crediting a client’s account as well as best practices on handling various scenarios. The methods discussed include write offs, write-downs, courtesy discounts, payment adjustments, editing or deleting the original transaction, and applying a credit transaction. For each method, we cover how reports, statements, and integration are handled and walk you through performing the method.
Because credit transactions can lead to problems down the road that are time intensive to fix if the credit is not entered correctly, this article also provides more in-depth information regarding how credit transactions work.
Make sure you’re performing credits the best way. Bookmark this article to use as a reference the next time you must credit or refund a client.
Our Knowledge Base can be accessed 24 hours a day, 7 days a week, at support.Tabs3.com. You can also access our Knowledge Base while in the software by selecting Help | Internet Resources | Knowledge Base.
When you need to refund or reverse credit card payments, you want to be able to do it with the least amount of hassle. Tabs3 Billing and Trust Accounting Software (TAS) are designed to automatically issue a ProPay refund or reversal when appropriate.
Knowledge Base Article R11708, “Credit Card Refund Best Practices,” provides information on how ProPay handles credit card reversals and provides processes for reversing, refunding, or deleting credit card payments or transactions in Tabs3 Billing and TAS.
Be sure to check out this article so that you are using the recommended methods to refund or reverse ProPay credit card payments.
Our Knowledge Base can be accessed 24 hours a day, 7 days a week, at support.Tabs3.com. You can also access our Knowledge Base while in the software by selecting Help | Internet Resources | Knowledge Base.