Shed Suite Refund Processing Guide

Refunds can occur for various reasons and require different processes depending on payment type and order status. This guide covers the proper procedures for issuing refunds in different scenarios.

Payment Types and Key Considerations

Shed Suite accepts three payment types:

  • Cash - Refund procedures vary by company
  • Credit Card - Processed through payment portals
  • ACH - Processed through payment portals

Note: This guide focuses on Credit Card and ACH transactions only.

Important: Payment Portal is the Source of Truth

For all Credit Card and ACH transactions, your payment portal is the authoritative source for transaction status. While some refund functions can be initiated from Shed Suite during order cancellation, always verify the final status in your payment portal to ensure the transaction processed as expected.

Refunding Unprocessed Orders

Understanding Unprocessed Orders

When refunding an unprocessed order, no payment has been captured:

  • Credit Cards: An authorization hold exists, but no funds have been taken
  • ACH: No transaction has been created yet (for dealer-collected ACH payments)

Refund Process for Unprocessed Orders

  1. In Shed Suite: When using the "refund customer" toggle, the refund amount will show as zero (this is correct since no funds were captured)
  2. In Payment Portal:
    • Log into your payment portal
    • Locate the credit card authorization
    • Click the transaction and select "Void"
    • This releases your hold on the customer's funds

Important Customer Note

Most card brands do not immediately release authorization holds, even after you void them. These holds may remain visible on customer statements for several weeks before they automatically "fall off."

Refunding Processed Orders

Processed orders are more complex because transactions go through different stages after capture.

Transaction Processing Stages

After an order is processed, transactions progress through these stages:

  1. Captured: Payment completed, funds are being transferred
  2. Batched: Transactions are grouped together but funds haven't reached your account yet
  3. Funded: Money has been deposited into your bank account

Same-Day Transaction Options

For same-day transactions that haven't been batched yet, you may still see "void" or "cancel transaction" options in your payment portal.

Important Limitation: Shed Suite can only process refunds after payments have been batched and fully processed. Shed Suite cannot void or cancel transactions during the capture/pre-batch stage.

ACH Transaction Guidelines

Critical ACH Refund Rule

Never refund an ACH transaction until you see the funds in your bank account. Even after an ACH transaction appears funded, it can still be returned due to:

  • Insufficient funds in the customer's account
  • Account closure
  • Stop payment requests
  • Invalid account information

ACH transactions have a higher risk of being rejected even after initial processing, so confirming the funds are actually in your account protects you from processing refunds on payments that may be reversed.

Best Practices Summary

Before Processing Refunds

  1. Check transaction status in your payment portal first
  2. Determine if you can void (for pre-settlement) or need to refund (post-settlement)
  3. For ACH: Confirm funds are actually in your bank account

Key Reminders

  • Use your payment portal as the definitive source for transaction status
  • Shed Suite refund functions work best for fully processed transactions
  • Customer communication is important, especially regarding authorization hold timing
  • ACH refunds require extra caution due to potential reversals

By following these procedures and understanding the different stages of payment processing, you can handle refunds efficiently while avoiding common pitfalls.