Refunds and Voids

Managing refunds and disputes is an essential part of maintaining donor trust and accounting accuracy. This guide explains how to issue refunds and voids, what happens during chargebacks, and how ACH returns are processed.

Table of Contents:

• Voids
  • How to Issue a Void
• Refunds
  • How to Issue a Refund
• Chargebacks and Disputes
• ACH Returns
• Negative Balance

Voids

A Void cancels a card transaction while it is still pending, so the money never actually leaves the donor's account, and the payment is treated as if it never happened. No processing fees are applied when the transaction is successfully voided.

Voiding Window

• Transactions can only be voided within 3 hours of submission.

• After 3 hours, you must issue a refund instead.

How to Issue a Void

To issue a Void, follow the steps below: 

1. Access the Finance > Transactions tab within your fundraising account.

2. Locate the donor's transaction. 

3. Hover over the donor's name and click Actions > View.

4. The View Transaction drawer will open on the right side of the page; in the lower-left corner, select Void Transaction. 

   • If the void window has closed, the Void Transaction option will no longer appear and only Refund will be available.
5. Next, select Confirm to issue the Void. 
   

The status of the transaction will update from Completed to Voided in the Finance >Transactions index. 

Refunds

Refunds allow you to reverse a completed transaction after it has already been processed. Refunding a transaction returns money to the donor’s original payment method and is typically used when a donor gives in error, is charged the wrong amount, or requests that their gift be reversed.

You can choose to issue either a Full Refund, which returns the entire donation amount, or a Partial Refund, which returns only part of the original donation when you need to correct the amount charged, or fulfill a donor’s request to refund only part of their gift.

Key Details:

• Anedot does not charge refund fees.

• For donations submitted with an incorrect amount, you can issue a partial refund—eliminating the need for the donor to submit a new transaction.

• However, Visa, MasterCard, PayPal, and others do not return processing fees—the organization absorbs those costs.

• If the Donor Covers Fees feature was used, the full transaction amount—including the covered fees—is refunded to the donor, and the organization is responsible for the total fees.

How to Issue a Refund

To issue a Partial Refund or Full Refund,  follow the steps below: 

1. Access the Finance > Transactions tab within your fundraising account.

2. Locate the donor's transaction. 

3. Hover over the donor's name and click Actions > View.

4. The View Transaction drawer will open on the right side of the page; in the lower-left corner, select Refund.

5. Within the Refund pop-up, select Full Refund (default) or Partial Refund.

   • When issuing a Partial Refund, enter the specific amount you want to return to the donor; this amount must be less than the original transaction amount. 
     
     Example: if a donor asks to have $25 of a $50 donation returned, enter $25 as the refund amount.
     
     
6. Next, select Submit Refund to issue the return. 

The status of the transaction will update from Completed to Partially_refunded or Refunded in the Finance >Transactions index. 

Chargebacks and Disputes

A Chargeback occurs when a cardholder disputes a transaction with their bank or credit card issuer, typically claiming the charge was unauthorized or made in error. 

Common Reasons for Chargebacks:

• The transaction was not recognized by the donor

• A duplicate charge was suspected

• The donor believes there was fraudulent activity

• The donor changed their mind and opted to dispute instead of requesting a refund

Recommended Action:

If your organization receives a chargeback, reach out to the donor to clarify the charge, as many disputes are filed by mistake. If the donor confirms the dispute was opened in error, they can contact their bank to cancel it.

How Anedot Handles Chargebacks:

A $15 fee is charged per dispute by the card issuer and passed through to your organization. This fee is non‑refundable, regardless of the outcome of the dispute. If the dispute is upheld, the donation is removed from your account. If the dispute is reversed and resolved in your favor, the donation is restored to your account, but the $15 fee still applies.

Credit card companies may take time to process both disputes and refunds, which can lead to timing overlaps. If a donor initiates a dispute after a refund has already been issued, a chargeback fee may still be applied by the card issuer. If this results in a duplicate refund, Anedot will automatically correct it so you are not charged twice for the same transaction.

For full details on chargeback responsibilities and fees, refer to Anedot’s Terms of Service.

ACH Returns

An ACH Return occurs when a bank draft (ACH) donation is returned by the donor's bank, usually because an issue prevented the bank from withdrawing funds. It is essentially the ACH version of a “bounced” check or failed transfer.

Though Anedot credits the donation amount upfront, the transfer remains pending for up to 8 days while the bank confirms it; if the bank rejects the transaction during this pending window, the ACH donation is returned and reversed.

Common Causes for ACH Returns:

• Insufficient funds

• Donor-initiated cancellation

• Incorrect account information

How Anedot Handles ACH Returns

Anedot receives a notice from the issuing bank when an ACH transaction fails. Anedot then notifies both your organization and the donor, the previously credited donation amount is removed from your Anedot account, and a $2 ACH Return fee is applied.

Negative Balance

If a refund is issued when your Anedot account balance is insufficient, a Negative Balance will appear. Any new donations will automatically be applied to reduce this negative amount. If no new donations are received, Anedot will debit your connected bank account to cover the remaining balance.