Tip #171


Tip #171
Voiding a Credit Card Sale

As I’ve said in previous posts, ON ACCOUNT orders should be voided if not as yet posted on a statement that has been mailed to the customer, but CASH sales (which include credit card sales) should always be reversed.

On Monday, I was made aware of a problem that exists with debit card reversals.  Here is the message I received…

“In trying to refund a debit card invoice from Friday, I’m getting a decline code 1012 from Merchant Warehouse. I’ve now talked to them about the problem and they are looking into it.
But, I’ve processed the refund through their portal manually, after waiting to get the card number and expiration date. How can I let flowerSoft know the invoice was reversed? Is there no option to enter the approval code manually?”

Today, I found out about of another issue which is that when you reverse an order through flowerSoft and flowerSoft issues a credit to the customer, you are charged a transaction fee.
Hopefully you do not have so many reversals that make this a significant expense.
As you all probably know, you can void a sale through Merchant Warehouse’s portal if you do it before the end of the day, which is when your money goes into your account.
As I understand it, if you use this method to refund the customer his or her money, there is no transaction fee.  However…

You still have to reverse that order in flowerSoft, otherwise it is going to show up as income and you will have to pay the sales tax on it.  But if you try to reverse or void the order after an approval has been obtained, flowerSoft will automatically issue a credit to the customer’s credit card for the total of the order.
If you have already given credit to the customer via Merchant Warehouse’s portal, you’ll be giving credit twice and I am sure you do not want to do that.
So I’ve come up with a way to satisfy both cases, I think.

Whenever you use Merchant Warehouse’s portal to void or give credit to a customer, the order in flowerSoft can no longer be reversed because since there is no way for flowerSoft to know this, it will try to refund the order amount again.  Remember that if flowerSoft “sees” a token and an approval number during the reversal process, it will automatically issue a credit to the card that was used  to pay for the order.  No exceptions.

So what I’ve done is instead of trying to reverse the order like you are supposed to do with all CASH payments, in these cases we will void (not really) the order instead.

Here is what will happen when you attempt to void an order that has been paid with a credit card and has a token and approval number.

Bring up the order through the Edit or View Existing Orders option of the Orders menu.  Once you have it in view, hit V to void the order.
Normally, when you do this from the Edit or View Existing Orders, flowerSoft tells you to use the V – Void/Reverse Orders option of the Orders menu.

The change I’ve made to the program is that if you bring an order that has been paid with a credit card, up through the Edit or View option of the orders menu and while the order is on the screen you hit V, flowerSoft will respond with…

void01

Read what the message says, carefully.

The question reads:
“Do you want to void this order but NOT issue a credit to customer’s credit card?”

If you want to issue a credit to the customer DO NOT answer “Y”es to the question.  Leave the answer as “N”o, which is the default.

But if you do want to void the order so that it does not show up as income and you have to pay the sales tax on it, answer “Y”es to the question.
flowerSoft will immediately prompt you for the supervisor’s password.

void02

If the correct supervisor’s password is provided, flowerSoft will still give you one more chance to change your mind…

void03

So, as you can see, flowerSoft is not really going to void the order, it is going to reverse it but will not try to issue a credit to the customer’s credit card.

Once you answer that that is what you want to do, flowerSoft will proceed to reverse the order without issuing a credit to the customer’s credit card.

void04

and when you look at the reversing invoice…

void06

it will tell you that the order was reversed but that no credit was issued.

Hopefully this new feature will resolve both the problem with the crediting of debit cards and having to pay transaction fees when an order is reversed and a credit is issued to the customer’s credit card.

Comments welcomed.

Leave a Reply

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s