Refunds under the Net Settlement process differ slightly from the previous billing system. When you issue a refund for a net-settled transaction, only the net amount deposited into your account will be recaptured.
Here’s What Happens:
- Guest Experience: The guest will receive the full amount they originally paid.
- Recapture from your bank account: only the net amount deposited into your account is recaptured.
- Monthly billed: The processing fee associated with the original transaction is billed during your next monthly billing statement.
- Non-Net-Settled Payments: Transactions processed before February 1, 2025, will continue to be billed as part of the previous monthly cycle system.
Example: Net Settled Transaction Refund
- Original Payment: A $100 payment with a 2.90% fee results in $97.10 being deposited into your account.
- Refund: If you refund $100, we’ll recapture $97.10 from your account, and the $2.90 fee will be included in your next monthly billing statement.
Why This Approach?
This ensures a seamless experience for your guests while providing a clear and organized method for managing related fees.
Best Practices for Managing Refunds
- Monitor your Net Settlement Report to stay informed about refund recaptures and fees.
- Ensure your bank account has sufficient funds for refund recaptures to avoid delays.
- Communicate refund policies clearly to guests to set expectations.
For more on reconciliation, visit our Using the Net Settlement Report article.