GlossaryPayments & Finance
Refund
Also called: money back
What is Refund?
A refund returns money to a customer for a cancelled order, a returned item or a service not delivered. It reverses the payment and, where a tax invoice was issued, should be accompanied by a credit note.
Why Refund matters
Refunds handled informally leave sales overstated and GST paid on money you gave back. Handled slowly, they also turn a recoverable complaint into a review and a chargeback.
How Refund works in practice
Refund to the original payment method where possible, issue the credit note against the original invoice, and record the reason. Refund reasons are one of the most useful quality signals a business collects.
Frequently asked questions
For any refund against a tax invoice, yes — that is what reverses the tax.