Overview
You’ll learn how to cancel or refund payments, understand the different payment statuses shown in Merchant Reports, and see how processing fees are handled depending on your fee settings.
This article focuses on Billing → Payments behavior, not merchant configuration.
When to Cancel vs Refund a Payment
Before taking action, it’s important to understand the difference between canceling and refunding a payment:
Canceling a payment
Stops a payment that has been initiated but not fully settled
Commonly used when a customer paid incorrectly and plans to submit a different payment method (for example, cash or check)
Refunding a payment
Sends funds back to the customer after the payment has been processed
Used when a customer overpays, a job is canceled, or an adjustment is required
Both actions are managed from the Billing tab on a project.
How to Cancel a Payment from a Project
To cancel a credit card or ACH payment:
Open the relevant Project
Go to the Billing tab
Locate the payment in the Payments section
Click the information (i) icon next to the payment
Select Cancel Payment
Once canceled:
The payment will no longer be processed
The customer can submit a new payment using another method if needed
How to Refund a Payment
To issue a refund for a completed payment:
Open the Project
Navigate to the Billing tab
Find the completed payment
Click the information (i) icon
Select Refund
Another option for Refund is through Company Settings.
Steps:
Click the hamburger menu (☰)
Select Company Settings
Open Invoice Templates
Open Merchant Reports and select the Payments tab
Click the payment you want to refund
Click Refund, select a reason, enter the amount, and confirm the refund
Refunds are processed through your merchant account and will appear in your Merchant Reports.
Understanding Payment Statuses in Merchant Reports
You can verify the true status of any payment by navigating to:
hamburger menu (☰) → Company Settings → Invoice Templates → Merchant Settings → Payments
Common statuses you may see include:
Completed
Payment was successfully processed and is eligible for deposit
Canceled
Payment was stopped before completion
No funds were deposited
Refunded
Funds were returned to the customer
Processing and refund fees may still apply
Declined
Payment attempt failed
Clicking into the payment will show the decline reason
Processing
Payment is still moving through the payment network
The Merchant Payments report is the source of truth for payment status, even if email notifications differ.
Notification Timing vs Actual Payment Status
In some cases, you may receive an email notification stating that a payment was completed even after you canceled it.
This can occur due to:
Timing delays between the payment processor and notification system
Status updates completing after the cancellation action
To confirm the real outcome:
Always check the Merchant Payments report
If the payment shows Canceled, the cancellation was successful regardless of earlier notifications
How Processing Fees Are Handled
Fee behavior depends on your card and ACH fee settings, which are configured in Company Settings → Invoice Templates → Merchant Settings.
Credit & Debit Card Fees
If you pass card fees to the customer:
The customer pays the processing fee at checkout
If a refund is issued:
The transaction fee is not returned
A refund fee may still apply
If you absorb card fees:
The processing fee is deducted from your deposit
If a refund is issued:
The original processing fee is not returned
You are responsible for the refunded amount plus any refund fee
ACH / E-Check Fees
If you pass ACH fees to the customer:
The customer pays the ACH processing fee
Refund and return fees may still apply
If you absorb ACH fees:
Fees are deducted from your deposit
Many companies choose this option due to lower ACH costs
Tip: Always verify local regulations before passing payment fees to customers.
Verifying Deposits and Fees
To confirm how payments and fees impact your deposits, you have two ways to review this information.
Option 1: From Merchant Reports
Go to Company Settings → Invoice Templates → Merchant Settings
Open the Deposits report
Click into a deposit to see:
Payments included
Processing fees
Net deposited amount
This view is best for reconciling bank deposits and understanding how multiple payments were grouped together.
Option 2: From a Project (Revenue Breakdown)
You can also review fee and revenue details at the project level:
Open the Project
Go to the Budget tab
Scroll to the Revenue section
Here, you’ll see a full breakdown of how revenue is calculated for that project, including:
Gross Revenue
Merchant Fees
Refunds
Chargebacks
ACH Returns
Net Revenue
This view is useful when you want to understand how individual payments, fees, or adjustments affected a specific project.
Related Topics
Company Settings: Invoice Templates – Merchant Settings
Processing Customer Payments in ProLine
Understanding Merchant Reports vs Cashflow Dashboard
Final Tips
Use Merchant Reports as your primary payment reference
Always verify payment status before taking action
Export reports when reconciling accounts
Adjust pricing strategies if absorbing processing fees
If you ever have questions about a payment, its status, or associated fees, ProLine Support is available to help, contact [email protected] , and your merchant reports already provide the same real-time data used by the support team.
Click here to follow a step-by-step walkthrough with screenshots: Managing a Project: Payment Cancellation & Refunds