This article covers refunds on Factorial cards used in Expenses. When a merchant gives money back to the card, the original expense doesn't change. The refund shows as its own line on the card (Refunded) and on the cards account (Card refund), and the amount goes back to the card's budget. You don't need to record it: Factorial does. Here's where to find a refund and how to keep your expenses and books right.

Find a refund

Overview

Factorial records a refund as a separate line with the status Refunded. The original expense keeps its full amount and no new expense is created for the refund. The refunded amount is available to spend again within the card's current limit period.

How to use

1. On the card: open the card (My spending > My cards, or Treasury > Cards > View details), go to Card payments and filter Status by Refunded.
2. On the cards account: go to Treasury > Accounts, open the cards account and check its transactions. Refunds show as Card refund.
3. The original expense: find it in Spending > Employee expenses. It still shows the amount first charged.

Keep the expense and the books right

Overview

Because the original expense keeps its full amount, agree with your team how to note refunds so nothing is reported twice. Card expenses are never paid back to the employee, so a refund only affects your reporting and accounting.

How to use

1. Find the original expense and the refund line (same merchant, close dates).
2. Add a note to the expense description, for example "Refunded £30 on 12 Nov", so reviewers know.
3. Finance can use the Card refund transaction in the cards account for the matching entry in your accounting. To download it, click Export transactions on the account.

Tips and Best Practices

Troubleshooting and FAQ

Troubleshooting

• The refund isn't on the card yet. The refund appears when the merchant sends it, which can take some days. Check again later.
• The payment shows Reversed instead of Refunded. The merchant cancelled the payment. The expense status changes to Payment reversed and there's nothing else to do.
• I can't lower the expense amount. The amount of a card expense comes from the card payment and can't be edited.

FAQ

1. Why doesn't the refund reduce the original expense?

Factorial records a refund as its own line and doesn't link it to the original expense, so the original keeps its full amount.

2. Is the refund missing or imported wrongly?

No. A refund appears as its own line with the status Refunded, and no expense is created for it.

3. Does a refund give money back to the card's limit?

Yes. The card's spend in the current limit period is its payments minus its refunds, so a refund frees up budget.

4. How is a dispute (chargeback) different from a refund?

A refund is money the merchant sends back. A dispute is a claim against a card payment and is linked to the original payment. If you don't recognise a payment, deactivate the card and contact our support team: there's no screen in Factorial to open a dispute yourself.