How to Process a Refund in 17hats
17hats allows you to issue both full and partial refunds on payments, whether the payment was collected manually or through your connected Stripe or Square account.
Before You Begin
You can process refunds in two ways:
Payment Method | Refund Type | Where the Money Moves |
Stripe / Square (connected via 17hats) | Full or partial | Funds are automatically returned to the client through Stripe or Square |
Manual payments (cash, check, external platform, etc.) | Full or partial | You will record the refund in 17hats only — you must refund the client outside of 17hats |
How to Issue a Refund
1.) Navigate to the Invoice where the payment was made
There are two locations where refunds may be processed. At the top of the Invoice or inline with the payment at the bottom of the Invoice
2.) Click the refund button you want to use.
If multiple payments have been made on a single Invoice, the Refund button at the top of the Invoice lets you refund the full amount. To partially refund an Invoice (or refund only one payment), you will need to click "refund" next to the specific payment at the bottom of the Invoice.
3.) Additional Refunding Options
When you're refunding, you may choose to void the Invoice (read more about voiding Invoices here) and/or send an email to the client about the refund.
If you choose to send an email, you will see a template open that you can customize.
*Please Note - the payment will be refunded (and the Invoice will be voided, if you have selected that option) as soon as you click "refund."
What Happens Next
If the payment was made through Stripe or Square
The refund is processed instantly through the payment processor
17hats updates the invoice and accounting automatically
If the payment was recorded manually
17hats will not send money back to the client
You must refund the client separately (e.g., Venmo, bank, etc.)
The invoice and bookkeeping will reflect the refund inside 17hats
Frequently Asked Questions
Q: May I manually refund a payment that a client made through Stripe or Square?
A: Yes, check the "manually refund" button in the refund dialog
Q: How are tips refunded?
A: Tips may be refunded in the same way that payments are refunded. When a tip has been added to an Invoice paid with Stripe or Square, you will see the Invoice balance + tip amount listed. Please note that if you partially refund an Invoice with a tip, the tip is refunded last.
Q: I accidentally refunded a payment that I shouldn't have. What do I do?
A: If the refund was manual, you may "remove" the refund from the Invoice. Then, do not manually process the refund.
If the refund was processed automatically through Stripe or Square, the client will need to resubmit payment.
Q: What happens with credit card processing fees when I refund a credit card payment automatically?
A: Your client will be refunded the entire amount they paid, but Stripe or Square will retain their processing fee. You will see a negative expense listed under Financials for the Project.
For example, if a client paid you $100 by credit card, you receive $96.80 in your bank account (the credit card processing fee is $3.20). If you refund that payment, your client receives $100 back, so you are now -$3.20.