Refunds
Refunds
Section titled “Refunds”Issue a full or partial refund on any paid invoice.
How refunds will work
Section titled “How refunds will work”On any paid invoice’s detail page, you’ll see a Refund button. Clicking it opens a short form:
- Amount — Full invoice (default) or a partial amount
- Reason (optional, for your records) — Free-text note
Refunds land on the same card or bank account the client paid from, typically within 5–10 business days.
Fees on refunds
Section titled “Fees on refunds”Refunds come out of your merchant account balance — the same balance your payouts are paid from.
Processing fees from the original payment are not refundable. This is an industry norm across card networks: the fees a processor collects at the time of payment are paid out to the card networks immediately and can’t be reversed when the payment is later refunded. Quilted Pay’s portion of the fee is refunded proportionally — on a partial refund, you’ll get back the same percentage of the Quilted Pay fee as the refund amount.
On a full refund of a $3,000 credit card payment, you’ll return the full $3,000 to the client, and the original processing fees (paid at the time of the original payment) stay with the card networks. You’ll see a corresponding debit on your balance when the refund is issued.
If your balance is too low
Section titled “If your balance is too low”If you don’t have enough in your merchant account balance to cover a refund (for example, you refund a $3,000 invoice but have only $500 in balance), the refund will be held in pending status and the difference will be debited from your linked bank account via ACH.
You’ll get an email notification if a refund enters pending. It completes automatically within 1–2 business days.
Disputes vs. refunds
Section titled “Disputes vs. refunds”A refund is when you proactively return funds to a client.
A dispute (also called a “chargeback”) is when the client tells their card issuer they didn’t authorize the charge, and the card issuer reverses the payment on your behalf. Disputes incur a small fee from the card networks whether you win or lose, and the disputed amount is held until the dispute resolves.
For disputes, you’ll respond with evidence through our payment processor’s dashboard (Quilted EHR will show a notification with a link). Dispute UI inside Quilted EHR is on the roadmap.