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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 theirthe 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 NMI.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.

RefundStep-by-Step: Refunding a Card Payment

  1. Go to Accounting → Invoices (or find the invoice from anthe Invoiceoriginal (CreditSales Note)
      Order).
    1. Open the original Invoice that was paid by cardcard.
    2. Click Add Credit Note.
    3. Select the reason and confirmfor the creditrefund note(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).
    4. OnThe Credit Note is created. Review it to make sure the creditamount note,is clickcorrect.
    5. Click Register Payment on the credit note.
    6. Select the NMIoriginal payment method — CloudFFL will processfrom the refundJournal backdropdown to— the same NMI or Authorize.net method used for the original cardcharge.
    7. Click ConfirmPay

    Refund from POS

    1. Open a new POS session
    2. Find the original order (use the Orders list or search)
      3. Validate).
    3. Click Return
    4. Select the items being returned
    5. Process the refund — select the Credit Card payment method
    6. The refund is sent throughto 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

Void vs Refund

  • Void — Cancels a transaction before it settles (same day). The charge disappears from the customer's statement. No processing fees.card.
  • RefundPartial refunds: —Not Reversessupported a transaction after it has settled. Shows as a separate credit onthrough the customer'sCloudFFL statement. Takes 3-5 business days. Processing fees may still apply.integration.

Important:Authorize.net does not support partial refunds. RefundsIf cana onlycustomer goreturns backone 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 originalpayment cardprocessor used(NMI foror Authorize.net) immediately when you click Pay.
  • Customer's bank: The bank typically takes 5 to 10 business days to post the purchase. You cannot 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 differentrefund, 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 theit customerdoesn't, nocontact longeryour haspayment thatprocessor's card,support youteam.
    • may
  • Same-day needvoids tovs. issue a store credit or cash refund instead.

Tip:refunds: If the saleoriginal payment was made today and has nothasn't settled yet, voidthe processor may handle it as a void (cancellation) instead of refundinga —refund. itThe result is fasterthe same for the customer and— avoidsthey processingget fees.

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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