This article includes instructions for issuing Parital Refunds from the family ledger for customers using supported gateways. Instructions for handling full refunds can be found here.
iClassPro supports issuing partial refunds directly from the family ledger for customers who use iClassPro Merchant Services, SafeSave, Money Movers of America (Process Pink) and other NMI-based gateways, Authorize.net, or Bambora/Beanstream.
This ability allows you to record partial refunds as they happen, rather than by having to adjust the ledger to reflect partial refunds as they occur. It also allows you to void payments when they are made in error, rather than recording them as a refund. All of this helps to improve accounting practices for your business.
When you click the “Refund” button on the family ledger, the system will check to see several things:
- What type of payment is it?
- Credits are voided rather than refunded since no money actually changed hands
- Cash/Check payments - may be refunded at any time after they are created
- Credit Card/eCheck payments - can be refunded or voided depending on their gateway status (whether or not they have settled)
- Has the payment been already been voided/refunded in full?
- If not, how much of the payment is available to be refunded?
When issuing a refund, the payment will be updated to add a line item for any refunds that have been issued. This may be one line item for a full refund, or several line items if several partial refunds are associated with the payment.
After clicking the refund button, the system will display one of four possible scenarios:
- Transaction ID not found in the gateway - this means the payment cannot be found, so it cannot be voided/refunded.
- Payment has not yet settled - in this case, the transaction ID exists in the gateway, but the payment has not yet settled. In these cases, you will be asked whether you want to VOID the payment instead. (Note that a VOID completely cancels out the full payment -- if you voided the payment because it was for an incorrect amount, you will need to void it and then run a new payment for the correct amount.) VOIDED payments are indicated on the ledger by having the title struck through with a single line. (For example:
- If the payment has settled, you will be presented with a list of any charges the payment is applied to (as well as any previous refunds) so you can issue a partial refund based on the line item. If it is unapplied, you will be offered the option to issue a full refund (in addition to the ability to issue a partial refund).
Note that if the original payment was made more than 60-90 days ago, you may not be able to issue or void a refund. (This timeframe may vary depending on your particular payment gateway).
Refund screen for an unapplied payment or a payment that has no previous refunds.
Refund screen for a payment with previous refunds.
- If the payment was a non-gateway transaction, such as cash or check -- you will be given a choice to either refund or void the payment. If you choose VOID, it voids the entire payment. If you choose REFUND, it will allow you to specify an amount to refund.
If the payment was issued as a credit type, the system will only allow you to VOID the entire payment. This option is selected automatically when you click the icon to refund the payment.
Non-gateway transaction refund screen
- You can no longer delete a REFUND from a ledger; you will need to VOID it instead. This is to keep the information in sync with the gateway (where refunds are displayed as separate transactions). If you VOID a refund, it shows on the reports as being voided, but it will no longer show as a partial refund attached to the original payment.
- If you DELETE a payment that has refunds attached, it will also delete the associated refunds from the ledger.
- Partial refunds show on financial reports simply as a REFUND. There is no special note that it is a partial amount.
Notes for Administrators
The ability to issue partial refunds may require changes to your gateway settings. If you use iClassPro Merchant Services, SafeSave, Money Movers of America (Process Pink) or other NMI-based gateways, you do not need to make any gateway changes as this option is enabled by default.
If you use Authorize.net, you will need to follow these steps:
- Log into your gateway dashboard at https://account.authorize.net/
- From the home screen, go to SETTINGS under the ACCOUNT section
- Under the SECURITY SETTINGS section, go to TRANSACTION DETAILS API
- Answer the “Secret Question”, then click “Enable Transaction Details API”
- Be sure to save your settings if that option is shown.
If you use Bambora/Beanstream, you will need to follow these steps:
- Log into your gateway dashboard at https://merchant.bambora.com/auth/signin
- First, navigate to CONFIGURATION>PAYMENT PROFILE CONFIGURATION>SECURITY SETTINGS>API ACCESS PASSCODE. Make a note of the API Passcode that is shown here. (Be sure to write it down exactly as it appears, paying close attention to upper- and lower-case letters and differentiating between numbers such as “0” compared to letters such as “O”).
- Navigate to ADMINISTRATION>ACCOUNT SETTINGS>ORDER SETTINGS
- Under the “Reporting” section, fill in the “API Access Passcode” field with the same API key that you noted earlier from CONFIGURATION>PAYMENT PROFILE CONFIGURATION>SECURITY SETTINGS>API ACCESS PASSCODE.
- Be sure to save your settings if that option is shown.
BYPASSING SETTLEMENT STATUS CHECK (FOR NMI GATEWAYS ONLY)
Because some payment processors do not pass the settlement state back to the payment gateway, partial refunds/voids are not possible by default.
To allow our clients who use these processors to utilize the partial refund and void functions, iClassPro staff can enable an option in your account configuration that will bypass this settlement state check upon request if you use an NMI-based gateway.
- Because iClassPro cannot check the settlement state of the payment, it is up to the account owner to know their gateway’s settlement schedule to be sure they are attempting to perform the appropriate task in relation to their settlement time.
For example, if you choose to void a payment past the settlement time, it could fail. In this case, you would need to click refund again to refund the full amount. Likewise, if you attempt to do a partial refund before the settlement time, it would fail as the payment has not yet settled. In this case, you would need to void the payment and run a new payment for the correct amount.