Allowing schools to pay invoices with credit cads

Since check-paying schools are paying the full invoice amount including the electronic fee, the cleanest way to reimburse them is with a credit memo for the fee amount.

Here's how:

1. Go to + Create > Credit Memo.
2. Select the school's name from the Customer dropdown
3. Add the electronic payment fee as the Product/Service line item with the fee amount
4. Select Save and close

Then, create a refund expense to actually send the money back:

1. Go to + Create  > Expense.
2. Select the school as the Payee.
3. In the Payment account field, choose the bank account you're refunding from.
4. In the Category column, select Accounts Receivable.
5. Enter the fee amount and Save.

Lastly, link them together.

1. Go to + Create > Receive Payment
2. Select the school's name.
3. In Outstanding Transactions, check the Expense; in Credits, check the Credit Memo.
4. Confirm the balance is $0, then Save and close.

This keeps your books clean. The credit memo offsets the fee, and the expense records the actual refund going out.