Refunds & ACH Rejects with Stripe

Learn how to process a refund with Stripe and LMN.

In this article:

Process a Refund with Stripe

🎥 Video: Payouts & Reconciliation with Stripe

ACH Rejects

Negative Account Debit Process

Process a Refund with Stripe

1. To find a payment you need to refund, navigate to Payments > Payments in LMN. 
   💡Utilize the Search bar for the payment name or job name or use the filters
   
2. Once you have found the payment you need to refund, click into it. 
3. Click the Refund Payment button
   ⚠️ Note that partial refunds are unavailable in LMN and you will have to refund the whole amount from the invoice. 
   
4. The record of the refund will appear back on your Payments list with a payment type called Refund and a negative balance in red.
   ⚠️ This cannot be exported to QuickBooks and will remain here for your records. 
   
5. Back on the original invoice, the refund will be recorded on the bottom and the invoice balance restored. 
6. You can now edit this invoice or click Resend Invoice for payment.
   
    

🎥 Video: Payouts & Reconciliation with Stripe

Watch the Payouts & Reconciliation with Stripe video tutorial HERE

ACH Rejects 

Understanding ACH Rejects

ACH payments work differently than card payments. Instead of an instant approval or decline, funds are requested directly from your customer's bank, and the bank has a window of time to respond. That's why a rejected ACH payment can take 2–5 business days to surface. Until the bank responds, the payment appears pending.

The most common reasons for a reject:

• Insufficient funds
• Closed or frozen account
• Incorrect account or routing number

ACH Rejects in LMN

• When an ACH Reject occurs, you will be instantly notified by our team via email. 
• In LMN, the Payment Type on the transaction will switch to Credit
• The Status will change to Failed in your Transactions List 
• This entry cannot be exported to QuickBook and is kept here in your Transactions list for historical records. 
• 💡 We recommend never deleting this entry from LMN.
• If you click into the payment, the reason for the failure will be listed in the Notes section
• The total of the Rejected amount will be automatically put back on the invoice so that you can resend for payment with the  history of the original failed ACH payment down below.

Negative Account Debit Process

Refunds & ACH Rejects

When a merchant is funded before Stripe receives an ACH Reject from the issuing bank, Stripe will automatically debit the merchant’s bank account to recover the original deposit. If your Stripe account balance does not have enough funds to cover an issued Refund and no incoming payouts are available, Stripe will pull the funds directly from your bank account — and your Total Balance in the Payout section of  LMN will appear negative. 

A successful debit withdrawal will reflect like this in the Payout tab in LMN

Click into the Withdrawn Payout to see more details:

If there were no incoming Payouts to offset the refund or ACH Reject, Stripe will auto debit your bank account to recover the funds. You will see a separate Payout recording this auto debit. The status of the Payout will say Withdrawn, and the description will say Withdrawal to cover a negative balance

If a merchant has incoming payments, a Refund will be recorded in  Refunds under the Summary section with other successful charges and listed as a Refund under Transactions

An ACH Reject will be recorded in Refunds in the Summary section, and Payment_Failure_Refund under Transactions

Need more help?  Contact our Support Team by email at lmn-support@granum.com, through Live Chat, or by phone at (888) 347-9864

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