---
title: "Invoice Refunds"
slug: "understanding-invoice-refunds"
updated: 2024-10-10T08:24:45Z
published: 2024-10-10T08:24:45Z
canonical: "help.nexudus.com/understanding-invoice-refunds"
stale: true
---

> ## Documentation Index
> Fetch the complete documentation index at: https://help.nexudus.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Invoice Refunds

## What are Refunds?

Refunds essentially return the funds sent by a customer via a payment gateway. Refunds are useful when customers are overcharged and they want to get their money back instead of getting a credit note.

You can [partially](/docs/partially-refunding-invoices) or [fully](/docs/fully-refunding-invoices) refund any paid invoice. Refunds are processed differently based on the payment method used to pay for the invoice.

## How Customers Are Refunded

Customers are automatically refunded via the payment gateway they used to pay for the invoice.

*For example, a customer who paid an invoice using Paypal will be refunded via Paypal.*

If you manually processed an invoice payment using a method that isn't one of the integrated payment gateways, you'll need to select a manual payment method to issue the refund in Nexudus and send the refund payment outside of Nexudus.

*For example, if a customer paid via check, you should select **Check** as the refund payment method and send the funds back to the customer outside of Nexudus via check.*