I cancelled a recurring payment yesterday from a customer and it went through today. How can I refund the payment as it hasnt been paid out to me yet?

You'll need to create a Refund receipt to process a refund payment to your customer in QuickBooks Online (QBO), Get.

Here's how:

1. Log in to your QBO account.
2. Go to the + New and select Refund receipt.
3. Enter the customer's name and the date for the refund.
4. Fill out the fields with the same info on the original sale.
   • To issue a refund to their credit card, select Credit card from the Payment method ▼ dropdown. Then, select Enter credit card details. Enter their credit card info then select Submit.
   • Tip: You can also select Swipe card if you’re with the customer and you have a card reader.
   • To issue a refund to their bank account, select Direct Debit from the Payment method ▼ dropdown.
   • Note: If you don't see Direct Debit in the Payment method ▼ dropdown, select + Add new, enter Direct Debit, then select Save.
     
     
5. Once done, click Save and close.

For more detailed information on the steps above, please refer to this article: Void or refund customer payments.

You can explore this resource about handling customer payments in QBO: Receive and process payments.

Feel free to ask if you need additional assistance in refunding payments.