Refunds can be requested directly from the relevant invoice. Note that your clients can still dispute (chargeback) payments even after they are refunded through Anchor. Chargebacks are covered in this article.
💡 Alternative Option: You can credit the refund amount to your client's next invoice instead of processing a refund.
For example, if you need to refund $200 and the upcoming invoice is $500, the next invoice will be reduced to $300. Read more about credits.
How to Request a Refund
Open the invoice you’d like to refund.
Click the More button at the bottom of the invoice.
Select Refund payment.
Enter the amount you wish to refund:
If you enter the full invoice amount, the invoice status will update to Refunded.
If you enter a partial amount (up to the invoice’s total), the invoice status will show Partially Refunded.
Choose whether to include the credit card processing fees in the refund:
For full refunds, the full fee amount will be returned if selected.
For partial refunds, a proportional amount of the fee will be refunded.
Add a reason for the refund. This note will appear in the activity log but will not be visible to your client.
What Happens Next
Once processed, an email confirming the refund will be sent to you and your client.
The activity log will be updated for both parties, showing the refunded amount and whether fees were included.
The refund will be credited back to the payment method originally charged.
The entire refund process may take 3–9 business days, depending on the payment method.
To prevent your client from filing a dispute during the refund processing time, it’s recommended to inform them of the expected timeframe.
Refunds will be reflected on your Payouts page and subtracted from the amount deposited into your bank account.
If 90 days or more have passed from the date of the client’s payment, a refund cannot be applied. The easiest way to refund your client is by using credits or an off-platform alternative.
Charges for Refunds
Anchor does not charge any extra fees to process a refund. However, if you choose to refund the full amount of the invoice along with the processing fees, the client will receive both the invoice amount and the fees they originally paid - meaning the fees will be covered by you.
Example 1 – Full Refund with Fees Included
Your client paid $1,000 + $29.30 in credit card fees (2.9% + $0.30), so they were charged $1,029.30 in total.
If you choose to refund the invoice amount and the fees, your client will get $1,029.30 back.
You will cover the $29.30 processing fee, which will not be refunded to you by the payment processor.
Example 2 – Partial Refund with Proportional Fees
If you refund $500 of a $1,000 invoice and choose to include the fees, Anchor will calculate the proportional fee amount.
For a 50% refund, you’ll be responsible for 50% of the original processing fee ($14.65).
Fees Example Use Cases
Listed below is a table with example use cases and who pays CC fees for each method;
Scenario | Client Paid | Deposited to Your Bank Account | If Refunded, Client Receives | Absorbed Refund Differential |
ACH (You pay the $5) | $100 | $95 | $100 | $5 platform fee |
Credit Card (You pay CC fees) | $100 | $91.8 | $100 | $7.2 |
Credit Card (Client CC pays fees) | $103.2 | $95 (100-5) | $103.2 | $7.2
|
Credit Card (50% refund w/ fees) | $103.20 | $95 | $51.60 | $3.60 ($2.50 platform + $1.60 CC fees) |
Syncing Refunds with QuickBooks Online & Xero
Anchor pushes the refund to your accounting system and posts it to the Clearing Account you mapped:
QuickBooks Online - Anchor creates a Refund Receipt in Undeposited Funds (your clearing account).
Xero - Anchor creates a Credit Note marked as a Cash Refund, also recorded in the clearing account.
Both records use the reference RANC-[original invoice #] and include a memo naming the refunded invoice, so payments and refunds stay easy to trace and reconcile.
Still have questions? Feel free to send us a message by sending an email to [email protected], our team is always happy to help!