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Issuing a Refund to a Card

Issuing a Refund to a Card

When a customer returns an item or you need to reverse a charge, you can issue a refund directly from CloudFFL. The refund goes back to the same card (or bank account) the customer originally used to pay. Both NMI and Authorize.net support refunds, but there are some important differences between them.

Always issue refunds through CloudFFL — not directly in the NMI or Authorize.net dashboard. Processing a refund in CloudFFL creates a credit note that keeps your accounting records accurate. If you refund directly through your processor's dashboard, your books won't match and you'll have a headache at tax time.

Step-by-Step: Refunding a Card Payment

  1. Go to Accounting → Invoices (or find the invoice from the original Sales Order).
  2. Open the original Invoice that was paid by card.
  3. Click Add Credit Note.
  4. Select the reason for the refund (e.g., "Product Return") and confirm. You can also adjust the amount here if you're doing a partial refund (NMI only — see details below).
  5. The Credit Note is created. Review it to make sure the amount is correct.
  6. Click Register Payment on the credit note.
  7. Select the original payment method from the Journal dropdown — the same NMI or Authorize.net method used for the original charge.
  8. Click Pay (or Validate). The refund is sent to the payment processor, which returns the money to the customer's card.

NMI Refund Details

  • Partial refunds: Fully supported. If a customer bought a Sig Sauer P320 and three magazines but wants to return one magazine, you can refund just the cost of that one magazine.
  • Full refunds: Fully supported. Refund the entire invoice amount with one click.
  • Refunds appear in the NMI Console under the Transactions section. You can look up the original transaction to see the refund linked to it.

Authorize.net Refund Details

  • Full refunds: Supported. You can refund the entire transaction amount back to the customer's card.
  • Partial refunds: Not supported through the CloudFFL integration.

Authorize.net does not support partial refunds. If a customer returns one item from a multi-item order, you have two options:

  • Option A: Refund the full transaction through CloudFFL, then create a new sales order and charge the customer again for the items they kept.
  • Option B: Process the partial refund directly in your Authorize.net dashboard, then manually create a credit note in CloudFFL for the same amount to keep your books accurate.

Option A is cleaner for your records. Option B is faster but requires extra manual bookkeeping.

How Long Does a Refund Take?

Once you process the refund in CloudFFL, the money doesn't appear in the customer's account instantly. Here's the typical timeline:

  • Processing: The refund is sent to the payment processor (NMI or Authorize.net) immediately when you click Pay.
  • Customer's bank: The bank typically takes 5 to 10 business days to post the refund to the customer's account.
  • Customer notification: Some banks send an alert when the refund posts. Others just update the statement balance.

Tell your customer what to expect. When issuing a refund, let the customer know: "The refund has been processed on our end. You should see it back on your card within 5 to 10 business days, depending on your bank." This prevents follow-up calls asking where their money is.

Refund Tips

  • Check the original payment method. You must refund to the same card that was originally charged. If the customer's card has been replaced (lost/stolen), the refund usually still goes through because the bank routes it to the new card. If it doesn't, contact your payment processor's support team.
  • Same-day voids vs. refunds: If the original payment was made today and hasn't settled yet, the processor may handle it as a void (cancellation) instead of a refund. The result is the same for the customer — they get their money back — but voids are typically faster because the charge is simply cancelled before it posts.
  • Keep notes: When creating the credit note, use the Reason field to document why the refund was issued (e.g., "Customer returned defective holster"). This helps if you need to look it up later or reconcile your books at month-end.

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