When issuing a refund via Bonsai Payments, the amount that is credited back to your client is dependent on which party covered the processing fees. In this article, we'll review how to determine a refund amount.
If you have refunded an invoice payment via Bonsai Payments, the full amount your client paid will be refunded to them. In addition, Bonsai will refund the payment processing fees to the client.
To learn how to issue a refund for an invoice payment, check out our article on Refunding invoice payments to clients.
Issuing a refund where the client did not pay the fees
Here's an example of an invoice where the client did not cover the fees. This means that the fees were deducted from your total payout amount.
For an invoice of $100, where the client paid $100
You received $96.80 (after processing fees were deducted)
If you issue a refund, the client will receive a credit of $100
$96.80 from you
$3.20 from Bonsai (payment fees)
For an overview of the applicable processing fees on invoices, take a look at our resource on Understanding online payment methods and fees at Bonsai.
Issuing a refund where the client paid the fees
If the client covered the processing fees on an invoice, the client will receive a credit of the total amount they paid. This includes the invoice amount and any fees.
In this case, we'll review an example of how a refund works when the client has paid the processing fees.
For an invoice of $100, where the client paid $103.40
You received $100
If you issue a refund, the client will receive a credit of $103.40
$100 from you
$3.40 from Bonsai (payment fees)
To learn more about how to pass on processing fees to your clients on future invoices, head over to our article on How to have clients pay the transaction fee for online payments.
If you have any further questions on how refunds work, please feel free to contact Bonsai's Support team at support@hellobonsai.com.