A credit is a general balance on an account that Enrollsy applies automatically to invoices, incrementally, until it's used up. Every refund can either include one of these credits or not, and choosing correctly keeps account balances accurate. This article covers both scenarios with examples of each. For step-by-step instructions on refunding a credit card or ACH payment, see How to Issue a Refund.
Keep the credit if the customer no longer owes anything for what they were refunded — for example, they canceled or withdrew. Remove the credit if the customer still owes for that charge — for example, they overpaid or used the wrong payment method — so the invoice stays open for them to pay correctly.
When to Refund with a Credit
When you refund someone, whether you need a credit depends on whether they still owe for what was refunded. If the customer doesn't owe anything else, they'll usually need the refund credit. When you create a refund, Enrollsy automatically adds one — the box next to "Refund payment and close invoice with a credit" is checked by default.
The original charge stays on the invoice for historical record while the money is refunded to the customer. Instead of deleting the charge, the credit offsets it to create a zero balance — the credit simply replaces the payment that was refunded. Enrollsy applies any posted general credit across multiple invoices incrementally, unless a single invoice uses the full amount.
Example: A customer withdraws from a class
The class cost $200
The customer paid $200
The account balance is $0
The refund is $200, adding the payment back for a balance of $200
The credit is $200, which cancels the original charge
The account balance returns to $0
Adding a Credit with a Cancellation Fee
Adding a Credit with a Cancellation Fee
If your company charges a cancellation fee, the automatically-entered credit will need to be edited after the refund is posted. For a full refund minus the cancellation fee, the credit should include the fee amount to balance the account — for example, a $100 payment with a $10 fee and a $90 refund needs a $100 credit ($90 + $10).
For a partial refund minus the cancellation fee, the same logic applies at a smaller scale — for example, a $100 payment with a $10 fee and a $40 partial refund needs a $50 credit ($40 + $10).
When to Refund Without a Credit
If the customer still owes for what's being refunded, don't add a credit. Instead, select "Refund payment and leave invoice open." This is typically used when someone paid with the wrong payment method and plans to pay the invoice again.
A flat refund with no credit simply gives money back without canceling the charge — the charge still exists and still needs to be paid.
Example: A customer accidentally pays twice
The class cost $100
The customer paid $200 (once correctly, once by accident)
The account balance is $100 in the customer's favor
The refund is $100, adding that payment back
The account balance returns to $0
In this case, no credit is needed, since there was no remaining charge to cancel out.