Simple refunds are processed separately from the original expense due to a current platform design limitation. In this article, you’ll learn how simple refunds differ from disputes or chargebacks and how they appear in Factorial.
Overview
A simple refund is processed as an independent card transaction. It does not include a reliable reference to the original charge, so Factorial cannot automatically connect the refund to the original expense or adjust its amount.
This means the original expense keeps its full amount in Expenses, while the refund appears as a separate transaction in Treasury > Card transactions.
How to use
No action is required to link a simple refund manually. The refund is received and displayed as a separate transaction.
- In your sidebar, go to Treasury
- Access the Card tab
- Find the refund transaction
- Check the original expense under Expenses
Keep in mind that the original expense amount is not automatically reduced by the refund.
Simple Refund vs. Dispute/Chargeback
The way a refund is handled depends on how Stripe sends the transaction information to Factorial:
| Transaction type | How it is processed |
|---|---|
| Simple refund | Processed as an independent transaction. It does not automatically link to or adjust the original expense. |
| Dispute/chargeback | Stripe sends information that directly identifies the original transaction, allowing Factorial to automatically link and adjust it. |
If the refund does not appear linked to the original expense, this is expected behaviour for simple refunds. Stripe does not provide a reliable technical link between the refund and the original charge. As a result, Factorial cannot automatically match the refund to the original expense or adjust its amount.
If the original expense still shows the full amount after a refund, this is also expected. The original expense retains its initial amount, while the refund is recorded separately under Treasury > Card transactions. This is not a data error on Factorial's side. It reflects the transaction information received from Stripe.
Tips and best practices
- If you receive a simple refund, check both Expenses and Treasury > Card transactions to understand the complete transaction history.
- Don't treat the separate refund line as a duplicate transaction. It represents the refund received from Stripe.
- Keep in mind that the original expense amount remains unchanged in the Expenses module.
FAQ
-
Why doesn't my simple refund automatically reduce the original expense?
Because simple refunds are received without a technical reference to the original charge. Factorial therefore cannot reliably identify which expense should be adjusted.
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Why are disputes or chargebacks handled differently?
Stripe sends a direct event containing information that identifies the original transaction. This allows Factorial to automatically link the dispute or chargeback and adjust the transaction.
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Is the refund missing or incorrectly imported?
No. The refund is imported as a separate transaction because that is how the information is received from Stripe.