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# Issue a refund

This guide covers refunding Tabs Pay payments. Payments collected on an external processor should be refunded through that processor's dashboard outside of Tabs.

## Step 1: Find the transaction

Open the **Transactions** page in Tabs and locate the payment you want to refund. The list shows each transaction with its status, invoice reference, and payment ID. Click on the row representing the payment you'd like to refund.

## Step 2: Issue the refund

Select **Refund** on the payment, then enter a reason and an amount. Confirm to send it.

Tabs confirms the result by email and the transaction shows a refunded label once it completes.

## Step 3: Decide what happens to the invoice

Navigate to the invoice and decide whether to remove the payment by clicking the three-dot menu next to the payment record. What you choose depends on what you're trying to end up with:

| Your situation                                       | What to do                                                                        |
| :--------------------------------------------------- | :-------------------------------------------------------------------------------- |
| Wrong payment method was used                        | Remove the payment, then charge the customer again. The invoice ends up settled.  |
| The customer is owed a credit on this invoice        | Remove the payment, then issue a credit memo against it.                          |
| The customer is owed a credit on a different invoice | Leave the payment in place, then issue the credit memo against the other invoice. |
| The invoice shouldn't have been sent                 | Remove the payment, then void or delete the invoice.                              |

Removing a payment reopens the invoice to sent or overdue, so your books match what you actually collected. The third row is the one case where keeping the payment is correct—the invoice it's attached to was paid, and the credit belongs somewhere else.

## Next steps

* [Respond to a dispute](/collect-payments/tabs-pay/disputes)
* [Create and apply credit memos](/collect-payments/credit-memos)
* [Balance accounts and payouts](/collect-payments/tabs-pay/balance-accounts-and-payouts)