How do I give a refund?
Every business has their own refund policy. It is important to understand the ways in which you can provide refunds to your customers. We've outlined below the benefits of 3 different refund options and how to process and record refunds within the Farmigo system.
OPTION 1: Credits Instead of Cash
You can give a member credit through either a complimentary payment or Farmigo credits - depending on your store payment method. This money can be used in your web store at any time in the season to purchase any item. By using a credit system to refund members, you ensure money stays within your business and you give the member a reason to remain your customer.
- If your store payment method is Balance - Add a Complimentary Payment to your member's account.
- If your store payment method is At Checkout or On Delivery - Add Farmigo Credits to your member's account. If needed, click here to learn how to convert a positive member balance into Farmigo Credits.
OPTION 2: Paper Check Refund
If you absolutely have to give the member a monetary refund, the next best refund method is paper check. Paper checks are a good option because there are no transaction fees except the cost of a stamp. There are two scenarios to consider when understanding how to record a refund in the Farmigo system.
Scenario 1: Customer was unhappy with a product and requests a refund
- Add a Complimentary payment with the status "Received" for the price of the item. A positive amount is added to their balance.
- Add a Check payment with the status "Refunded" for the same amount. A negative amount is applied to their balance.
- Send the member a paper check for that amount.
Scenario 2: Customer wants to cancel their subscription
In this case, you will want to cancel the member's subscription, then refund the customer for the positive amount on their balance by adding a check payment with the status "Refunded."
OPTION 3: Electronic Payment Refund
If it is preferred that the member's electronic payment method is refunded directly:
1. Execute the refund from the appropriate electronic payment processor. To learn how to give refunds through your electronic processor:
2. Record that the refund took place in Farmigo. Open the members account in the dashboard. When viewing the member's subscription for the corresponding season, click the +Add Payment button and add a payment with the following settings:
1. Execute the refund from the appropriate electronic payment processor. To learn how to give refunds through your electronic processor:
- Authorize.net refund: Click here to learn how. Authorize.net charges $0.10 per refund processed + merchant charges a % of the refund (check with your merchant processor to find out what the fee is).
- Paypal refund: Click here to learn how. Paypal charges $0.30 per refund processed .
- CheckGateway refund: Click here to learn how. Checkgateway charges $5 per refund processed.
2. Record that the refund took place in Farmigo. Open the members account in the dashboard. When viewing the member's subscription for the corresponding season, click the +Add Payment button and add a payment with the following settings:
- Type = The corresponding payment method by which you issued the refund, e.g. Credit Card, Electronic Check, or PayPal
- Amount = Amount of the refund
- Status = Refunded
- Date = Date that the refund is issued
- Number = (You can ignore this field)
- Notes = You may add a note indicating the reason for the refund
